Chamwe Kaira
Pension funds remained the largest investors in the local market, with holdings worth N$18.6 billion in 2024.
Domestic investments attracted the highest allocations, followed by the common monetary area and offshore markets.
The increase in domestic assets was linked to regulation 13(2) of the Pension Funds Act, which requires pension funds to allocate a minimum of 45% of assets to the domestic market from 31 March 2029.
“The focus on the local market prompted investment managers to rebalance their portfolios, shifting allocations towards fixed-income assets. This shift was largely driven by perceived illiquidity in the local equity market,” the Namibia Financial Institutions Supervisory Authority (Namfisa) said.
Namfisa reported in its 2025 annual report that the overall market capitalisation of companies listed on the Namibian Stock Exchange (NSX) rose by 10.7% in 2024 to N$2.4 trillion by 31 December.
The NSX Overall Index increased by 10.3% to 1,801.18 points, while the NSX Local Index grew by 2.9% to 691.32 points.
Investment managers’ assets under management increased by 12.9% during the year, from N$251.6 billion in 2023 to N$284 billion in 2024.
“Investment managers play an important role in integrating the financial system, linking institutional investors to financial markets and banks, and managing funds on behalf of pension funds, insurance companies, collective investment schemes, medical aid funds, and other wholesale investors. Twenty investment managers continue to be the main conduit between Non-Banking Financial Institutions (NBFIs) and other sectors within the financial system,” Namfisa said.
By the end of 2024, the NSX had 61 listed securities, a 22% increase from the previous year.
These included 30 listings on the Main Board, nine on the development capital board, 21 on the Exchange-Traded Products Board, and one on the Over-the-Counter Board.
Ten FNB Exchange-Traded Notes were listed on the ETP Board during the year.
The market capitalisation of securities on the main board grew by 10.7% from N$2.21 trillion in 2023 to N$2.44 trillion in 2024.
Local market capitalisation increased by 5.2% to N$46.4 billion, representing 1.9% of the main board’s total. The capitalisation of ETPs rose by 38.1% to N$70.9 billion from N$51.4 billion the year before.
The development capital board’s capitalisation increased by 10% to N$25.4 billion, driven by new share issuances and the listing of Reconnaissance Energy Africa Limited.
The total value of securities traded dropped by 19%, from N$8.2 billion in 2023 to N$6.6 billion in 2024. The local value of securities traded declined by 20% to N$421.9 million.
Caption
Pension funds remain the largest investors on the local market.
- Photo: NSX
