For the young Namibian professional, the world of investing often feels like an invitation to a party where you aren’t allowed past the velvet rope. You’ve done the hard work – secured the degree, survived the gruelling entry-level years and finally carved out a small surplus from your salary after black tax and rent. You are told that the secret to wealth is “compound interest” and “diversification”.
You are told to look at unit trusts, the gold standard for long-term growth. But when you finally sit down with a prospectus from one of Namibia’s leading asset management firms, you are met with a number that feels less like an opportunity and more like a rejection: a minimum lump sum investment of N$75 000.
This figure is not just a number; it is a systemic barrier that defines who is allowed to participate in the Namibian capital market. In a country where the average entry-level corporate salary ranges between N18 000 before deductions, asking a 25-year-old to produce N$75 000 upfront is like asking them to buy a house with pocket change.
It is an impractical, out-of-touch requirement that effectively “gatekeeps” the most efficient wealth-building tools, reserving them for the established elite and the older generation while leaving the youth to settle for low-interest savings accounts that barely keep pace with inflation.
The irony of this high barrier is that unit trusts were originally designed to be the “people’s investment”.
The core philosophy of a unit trust is to pool money from many small investors to buy a diversified basket of assets such as shares, bonds and property, that an individual could never afford on their own. By pooling funds, investors achieve economies of scale.
Yet, in the Namibian context, several corporate or elite funds have drifted so far from this mission that they have become exclusive clubs. When an asset manager sets a N$75 000 minimum, they are essentially saying that the administrative cost of managing a smaller investor isn’t worth their time.
They are prioritising the big fish, while the fry, the very people who need wealth accumulation the most, are left to struggle in the shallows.
This exclusivity has a profound impact on the financial psychology of Namibia’s youth. When you are repeatedly told that you don’t have enough to start, you stop trying. You begin to view the Namibia Stock Exchange (NSX) or the asset management industry as something for other people or people with old money or political connections.
This leads to a culture of consumption rather than investment. If the door to high-growth assets is locked, why not spend that surplus on the latest smartphone or a weekend at the groove?
The N$75 000 barrier doesn’t just keep money out; it keeps the investor mindset out. It reinforces the idea that wealth is something you are born into, rather than something you build.
However, the narrative is slowly beginning to shift, and it is the disruptors in the industry who are leading the charge. While some legacy firms cling to their high minimums, other Namibian asset managers have recognized the untapped potential of the youth market.
Firms like Namibia Asset Managers have introduced funds with much more realistic entry points, some as low as a N$1 000 sum. These accessible funds are the true engines of financial inclusion. They acknowledge that a young professional may not have N$500 a month, the power of compound interest will eventually turn them into a high-net-worth client. The strategy is to start where you are, with what you have, and demand an investment industry that respects your hustle.
Institutional reform is also overdue. The Namibia Financial Institutions Supervisory Authority (Namfisa) and the Ministry of Finance must push for greater retail accessibility. There is a need policies that incentivize asset managers to lower their barriers for first-time investors under the age of 35.
A Youth Investment Tier where the administrative fees are subsidised or lowered to encourage the habit of saving could also work. If tertiary education can be subsidised for all Namibians in 2026, we can certainly find a way to make the tools of financial freedom accessible to the graduates of those very institutions.
In conclusion, the N$75 000 startup requirement is a relic of an old Namibia, one that valued the capital of the few over the potential of the many. It is an obstacle to the very financial inclusion that our national strategies claim to promote. Young professionals have the power of the collective; if they move their money to the firms that welcome them, the market will be forced to follow.
