Namfisa greenlights central securities depository

The Namibia Financial Institutions Supervisory Authority (Namfisa) has approved the establishment of the Central Securities Depository (CSD) Limited.

The introduction of a CSD in Namibia is expected to revolutionise trading activities by providing a centralised platform for safekeeping and settlement.

Namfisa spokesperson Victoria Raimond says this marks a pivotal moment for Namibia’s capital market industry.

“Central Securities Depository Limited, jointly owned by the Bank of Namibia and the Namibian Stock Exchange, is poised to play a central role in securely holding, safekeeping, and settling securities such as shares, bonds, and various financial instruments in electronic form,” she says.

This move aligns with global trends towards digitisation in financial markets, promising enhanced efficiency and transparency.

“The approval of Central Securities Depository Limited comes under the regulatory framework outlined in the ‘Determination of Conditions Relating to a Central Securities Depository’, issued in accordance with the Stock Exchanges Control Act of 1985,” Raimond says.

She says the regulatory overseeing body ensures adherence to stringent standards, safeguarding investor interests and market integrity.”

Additionally, this infrastructure upgrade aims to stimulate market participation, foster liquidity, and ultimately instil confidence in investors, she says.

“With the capital market industry in Namibia valued at N$251 billion, the full implementation of Central Securities
Depository Limited holds immense potential to elevate the country’s financial ecosystem,” Raimond says.

“By facilitating seamless digital transactions and replacing paper-based securities with secure digital records, the CSD is primed to catalyse innovation while fortifying the overall stability of Namibia’s financial system.”