Namibian bourse plans listing

By Jonas Eiseb

According to NSX Chief Executive Officer Tiaan Bazuin the new bill that will replace the current Namibia Financial Institutions Supervisory Authority Act, will require the stock exchange to become a company.

Currently, the stock association only belongs to its founder members. “In anticipation of the proposed Financial Institutions and Markets Bill, we will be required to demutualise the Namibia Stock Exchange. We do not know when the process is anticipated to be completed but are taking the necessary steps to list,” he said.

NSX has embarked on several reforms in a bid to attract foreign listings and improve liquidity.

Among the initiatives undertaken by the local bourse as part of effort to deepen its capital markets was the publishing of the Namibia financial sector strategy, which lists demutualisation of the exchange as a priority. Demutualisation would enable the public to own shares in the exchange. This will see the NSX join the ranks of the Johannesburg, Nairobi and Dar es Salaam bourses, which are also listed entities in their financial jurisdictions, Bazuin noted.

The demutualisation would also enable the Namibian public to acquire shares on the NSX.

The Namibian Ministry of Finance noted that demutualisation would serve as a guide to the improvement and development of the country’s financial sector.

NSX that opened its doors for trading in 1992, has managed to secure a number of high-profile companies mostly from South Africa.

Companies like Standard Bank, FirstRand and Old Mutual have dual listing on South African and Namibian stock exchanges.

The much-awaited Financial Institutions and Markets legislation seek to consolidate and harmonise the laws regulating financial institutions and financial markets in Namibia.

It also makes provision for a consumer protection framework, a complaints adjudicator and financial services ombudsman.

August 2016
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