The Namibia Financial Institutions Supervisory Authority (Namfisa) recently hosted a pension funds, industry engagement, bringing together key stakeholders in the financial sector to explore the role of unlisted investments in bridging funding gaps and fostering economic growth in Namibia.
The event, themed “Unlisted Investments as a Solution for Bridging Funding Gaps in the Economy,” was aimed at discussing how unlisted investments can support venture capital financing, development finance, and other key areas that contribute to Namibia’s economic development.
The engagement also included presentations from businesses that have benefited from unlisted investments, and highlighted the advantages of these investments to pension funds, their members, and the Namibian economy at large.
The chief executive officer’s remarks delivered by the general manager for pension funds and friendly societies, Lovisa Indongo-Namandje, emphasised the importance of unlisted investments in driving local entrepreneurship, creating jobs and supporting infrastructure development.
He also stressed the crucial role of pension funds in contributing to the country’s economic growth through strategic investments in unlisted assets.
“The conversations we have today are essential for raising awareness of the real-life impact of unlisted investments, and understanding the lessons learned from the regulatory framework in place,” said the CEO. “It is through engagements like these that we can enhance our approach, and ensure that unlisted investments continue to drive Namibia’s economic growth.”
The engagement featured a presentation by Capital Markets unit to provide insights into the state of unlisted investments, focusing on the challenges facing Namibian businesses in accessing funding, and how unlisted investments can create long-term value.
Key outcomes from the discussion included a conversation on the role of unlisted investments in the Namibian economy; hearing from businesses that have benefited from unlisted investments; raising awareness of the tangible impact unlisted investments have on economic development; emphasising the role of pension funds in contributing to Namibia’s economic growth; and understanding lessons learnt since the introduction of unlisted investment requirements.
Representatives from Mashare Berries Farming and II-Omburu Sun Energy also shared their experiences on how unlisted investments have supported their business growth and contributed to the broader economy.
Unlisted investments have been a key policy tool in Namibia’s financial sector since the introduction of the Development Capital Portfolio (DCP) in 1996, which evolved into the regulatory framework the country has today. Pension funds are mandated to invest a minimum percentage of their assets in unlisted investments, providing a critical avenue for local economic development, while safeguarding the financial future of the fund’s members.
As of March 2024, Namfisa regulates a growing unlisted investment sector, with 21 Special Purpose Vehicles (SPVs) and 31 Unlisted Investment Managers (UIMs) overseeing a N$4 billion industry.