WINDHOEK – Out of 10 applications received for Special Purpose Vehicle (SPV) and Unlisted Investment Manager (UIM), the Namibia Financial Institutions Supervisory Authority (NAMFISA) has approved Omaanda Capital as UIM and The Desert Stone Fund as SPV.
During December 2013, amendments to Regulation 28 under the Pension Funds Act (No. 24 of 1956) were promulgated and became effective as from January 01, 2014. Regulation 28, among others, stipulates the minimum (1.75 percent) and maximum (3.5 percent) investments by pension funds in unlisted investments, within a period of 12 months from the date of promulgation in accordance with Regulation 29. Further, Regulation 29 under the Pension Funds Act, was promulgated to provide a framework under which the unlisted investments by pension funds should be undertaken. As such, the regulations require that Special Purpose Vehicles (SPV) and Unlisted Investment Managers (UIM) be established and approved for this purpose.
Unlisted investments are investments that take the form of prescribed equity or debt capital in a company incorporated in Namibia and are not listed on any stock exchange, excluding conventional asset classes.
NAMFISA was established to supervise financial institutions and financial services and to advise the Minister of Finance on matters relating to financial institutions and financial services. According to the Authority a total of ten applications were received, of which five were for UIMs and five for SPVs.
According to NAMFISA’s Chief Executive Officer, Phillip Shiimi, the registration of the one SPV and one UIM is a step in the right direction and he expects more applications and approvals before the end of this year. Shiimi continued that the approval of these entities will provide an opportunity to increase economic activities in the real sector of the Namibian economy. He called on those entities that have still not been approved to ensure they work on the identified shortcomings that caused the delay in approval.