Namibia: Investor group plans to start a second stock exchange

A group of Namibian and international investors is applying for a licence to establish a second securities exchange in the country.

A group of Namibian and international investors is applying for a
licence
to establish a second securities exchange in the country.

A second exchange "would broaden and deepen Namibia’s financial and capital markets," making it easier for companies to raise funds from investors, and could provide a means of keeping the savings of citizens within the country, Helmut Angula, one of the founders of the NamFin-X group, told Bloomberg.

"Most local companies do not have capital, not because there is a lack of it in Namibia, but because they do not have anywhere to go to raise capital," he said.


A first application
from
the group was delayed after regulator Namibia Financial Institutions Supervisory Authority sought "more technical information and a detailed analysis".

The revised application should be presented this week and NamFin-X will start recruiting staff for the exchange once regulatory approval is granted.

The Namibian Stock Exchange is currently the only stock exchange in Namibia. Based in Windhoek, it has a partnership with JSE in neighbouring South Africa. At the beginning of 2014, a total of 34 companies were listed.