Chamwe Kaira
Namibia’s financial markets entered a new phase this week as the Central Securities Depository Limited (CSD) officially went live, moving the country from paper-based securities to a fully electronic post-trade system.
The launch was announced by the Namibia Securities Exchange (NSX) in partnership with the Bank of Namibia and under the oversight of the Namibia Financial Institutions Supervisory Authority (Namfisa).
For more than a decade, regulatory barriers prevented the creation of a CSD. A licence granted on 8 March 2024 allowed development to begin.
The CSD will store and manage securities electronically, handle clearing and settlement, and process corporate actions. All payments will route through the Bank of Namibia in line with IOSCO standards.
According to NSX, the platform offers faster settlement through delivery versus payment, lower counterparty risk, and greater security through dematerialisation.
It will also improve services for issuers and investors, boost liquidity and attract more foreign participation by aligning Namibia with global post-trade systems.
Bank of Namibia governor Johannes !Gawaxab said the shift will support stronger market activity. “When you remove paper, reduce settlement risk and standardise post-trade processes, liquidity improves. Investors trade more, issuers can raise capital at finer spreads, and the market becomes more resilient,” he said.
NSX group chief executive Tiaan Bazuin said the new system marks an important step for the country’s capital markets.
“The go-live of the CSD signals that we are serious about modern infrastructure, efficiency, and international competitiveness,” he said.
In the coming months, the CSD will migrate all existing securities into the digital system, onboard market participants, and provide training and integration support to ease the transition.
Five institutions have been approved as participants in the Central Securities Depository: Rand Merchant Bank, Standard Bank Namibia, NSX Financial Market Services, Bank of Namibia and Nedbank Namibia.
These entities will act as the main access points for investors.
The CSD is jointly owned by the NSX and the Bank of Namibia and is expected to form the backbone of a more secure, transparent and efficient securities settlement environment.
