The Namibian Stock Exchange (“NSX”) recently celebrated its 30th Anniversary highlighting major milestones over the years and future outlook.
At the event, Chief Executive Officer of the NSX, Tiaan Bazuin laid out the history of the NSX since its birth in September 1992 further touching on the future prospects of the NSX drawing special attention to the upcoming launch of an electronic bond trading system, the current application process towards becoming a full member of the World Federation of Exchanges in respect of which only 10 other African stock exchanges are full members, and current processes underway for a license application to launch a Central Security Depository (“CSD”) in light of the recent gazetted of the CSD Standards.
Equally, Chairman of the NSX, David Nuyoma, focused his speech on ‘The milestones achieved by the NSX to date’ highlighting amongst others, the successful listing of Mobile Telecommunications Limited (“MTC”) as the largest capital raising on the NSX to date and the first by a state-owned company; NSX’s move into carbon foot printing by issuing a NamCode directive directing institutions that subscribe to the NamCode to appoint a social, ethics and sustainability committee (“the SESC”) as an annual standing committee in line with the evolving recognition and importance of environmental, social and governance (“ESG”) factors for investors and issuers alike; Namibia as one of the first African countries where the International Finance Corporation registered a Bond Program and issued notes in respect thereof on the NSX; the NSX’s continued participation in the all-important debates and consultations leading to the drafting of various policies impacting the financial sector landscape in Namibia, and the NSX’s contribution to expanding the markets in the region by its participation in the Committee of SADC Stock Exchanges (“CoSSE”) and the African Securities Exchange Association (“ASEA”), as well as internationally through its affiliate membership with the World Federation of Stock Exchanges (“WFE”) and partnership with the United Nations Sustainable Stock Exchanges Initiative (“SSE”).
The Keynote speaker at the event, Dr. Frans Cronje of Frans Cronje Private Clients, an independent firm specializing in economic advice and strategy spoke extremely positively of Namibia and presented the three inherent advantages the country possesses for foreign entities to tap into in so far as the potential gains for Namibia as a transport and logistics hub is concerned.
“The first is that investing in Namibia’s transport infrastructure is not a green-fields project. Basic infrastructure is good in terms of road, rail, port, air, and data and communications – although it would need to be expanded to meet potential demand. The second is that port, electricity, and rail infrastructure is fading in South Africa to an extent that its repair will be very costly and beset with political pitfalls that are deeply frustrating to businesses in South Africa and those trying to trade with Africa via South Africa. The third advantage is that Namibia’s geography lends itself to the construction of ground transportation infrastructure into sub-Saharan Africa to a greater extent than approaches from Africa’s east coast.”
He added that of central importance is “Namibia’s standing, fairly unique in Africa, as a fundamentally free, open, safe, peaceful and democratic society”. In conclusion, Mr Cronje highlighted that “World Bank data shows that Namibia’s per capita GDP in US dollars has risen to just over $5 000 today. That $5 000 is equivalent to roughly 40% of the global average. In 1980 however, Namibia’s figure was roughly on par with the then global average. The subsequent shrinkage relates in the main to the extraordinary growth rates recorded by China, India, and the Asian Tiger economies over the intervening 40 years that propelled billions of people out of poverty and into relative prosperity. Exploit the resources and opportunities I have set out here tonight and Namibia could record equally impressive rates of growth that within a generation would see the country reach a comparable per capita GDP figure to that of Turkey or Malaysia today.”
In response to the massive potential of the Namibian economy highlighted by Cronje, Bazuin says that, “The NSX will be the boat that floats on the rising tide”.