The Namibia Securities Exchange (NSX), in collaboration with the Bank of Namibia (BoN) and supervised by the Namibia Financial Institutions Supervisory Authority (Namfisa), on Thursday launched the Central Securities Depository Limited (CSD).
The new CSD marks a step forward in modernising the country’s capital markets. For more than 10 years, old regulations prevented Namibia from creating a CSD. This changed after new rules were introduced, and a licence was finally granted on 8 March 2024.
Since then, the NSX, the BoN and other financial market players have worked together to design and build the CSD.
This means Namibia is moving from paper-based systems to a fully electronic system for handling securities. The CSD will keep all securities in electronic form and will make the clearing, settlement and registration processes faster and safer. It will also manage corporate actions, such as dividend payments.
All payments through the CSD will be processed by the Bank of Namibia, following international standards set by the IOSCO Principles for Financial Market Infrastructures.
Governor of the central bank Johannes !Gawaxab, said that, by eliminating paper-based securities and reducing settlement risk, Namibia’s new digital system is expected to unlock higher liquidity and improve access for both institutional and retail investors.
“The lesson for Namibia is clear: 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.
“The go-live of the CSD is a transformative moment for Namibia’s capital markets. It signals that we are serious about modern infrastructure, efficiency, and international competitiveness. Through the CSD, we will deliver a secure, efficient post-trade environment that strengthens investor confidence and opens new opportunities for market participation,” said Tiaan Bazuin, Chief Executive of NSX Group.
Bazuin added that, in the coming months, the CSD will continue rolling out the full onboarding of all market participants, migrate existing securities into the electronic environment, and ensure full automation of the new settlement system. The industry will be supported through comprehensive training, system integration projects, and ongoing stakeholder engagement, ensuring a smooth and coordinated transition.
The Central Securities Depository currently operates in collaboration with five approved Central Securities Depository Participants (CSDPs) in Namibia. These participants play a critical role in facilitating investor access to the CSD system, maintaining client accounts, and ensuring compliance with post-trade settlement and custody standards.