WINDHOEK – Plans to establish a new exchange – the Namibia Financial Exchange (NamFin-X) – are underway and going well, says its chairperson, Helmut Angula, the former minister of finance.
NamFin-X submitted an application to the Registrar of Stock Exchanges for a licence to operate a stock exchange in terms of the Stock Exchanges Control Act during May 2012.
In September 2012, NamFin-X received approval from the Minister of Finance, Saara Kuugongelwa-Amadhila, for an association of 10 persons to make an application for and to be issued with a licence to operate the mooted stock exchange. At this stage, these comprise five Namibian corporate entities, four individuals, and one international corporate investor, who are the current shareholders of NamFin-X, with Namibians owning the majority stake. It is envisaged the broader Namibian public shall also participate in ownership of the exchange.
This would be in line with the government’s policy of indigenous ownership of financial institutions.
“NamFin-X is a truly Namibian endeavour, and fundamentally Namibian in its philosophy,” says Angula. He pointed out that 60 percent of the Namibian-owned exchange’s developmental goals are closely integrated and cognisant of Namibia’s Vision 2030 and the National Development Plans.
These objectives also speak to Namibia’s Financial Sector Strategy (NFSS), which seeks to “guide the achievement of the financial sector objectives as set out in the various national development plans (NDPs and Vision 2030)” and to ultimately “contribute to fostering economic growth and poverty alleviation as well as reducing income inequality.”
Since October 2012, the promoters have been engaged in the review process with the regulator.
In May 2013, a notice was gazetted that NamFin-X’s application and rules for the stock exchange were open for inspection.
The regulator advertised this notice in two local dailies over the course of three weeks, wherein the regulator called for comments from the public.
This process was completed at the end of June 2013.
In line with the NFSS, “Transformation is central to NamFin-X’s philosophy, and the exchange will benefit Namibia and Namibians in a plethora of ways, at both the micro and macro economic level,” said Angula.
Speaking on job creation and SME development objectives, Angula pointed out that “80 percent of all employment in emerging markets is estimated to be provided by SMME’s. NamFin-X will widen the economic participation in the market, empower issuers and investors to realise their economic freedom and more importantly, fill a much needed funding gap allowing many new ventures and SME businesses to realise their economic potential.”
NamFin-X will not only provide sources of finance for these businesses but also access to the expertise and experience of investment companies, the investment community and a nominated advisor. This will occur within a regulated framework.”
In extending the benefits of the exchange to the Namibian public, Angula also noted: “The general public as well as companies looking to raise capital will benefit from the proposed new exchange because of the competition and increased liquidity that an alternative bourse will provide. The initiative is aligned with, and supports Namibian government policy, including investment in job creation, investment in financial services education, new enterprises and socio-economic transformation.”
The Namibian promoters have solicited the necessary stock exchange services including experienced management, rules and listing requirements, and IT from a reputable source and investment partner.
“NamFin-X will provide Namibia with world-class financial services and regulators, and membership of the World Federation of Exchanges which will provide a footprint on the world stage and will lead to a more competitive, more liquid financial sector,” he said.
By Staff Reporter