Central securities deposit to liberalise debt market

Opening up the market
International investors to gain access to local debt instruments.
Ogone Tlhage
  • 2 Weeks Ago - 2024-10-03 00:00:00
The Bank of Namibia (BoN) is championing the introduction of a central securities depository (CSD) that, once launched, will give foreign investors greater access to Namibia’s debt instruments.
Speaking at a public engagement hosted in conjunction with the University of Namibia (Unam), BoN governor Johannes !Gawaxab said the central bank was helping liberalise Namibia’s financial markets.
“What we are trying to do is to have it dematerialised and have it electronically available. If the government has an auction available, it is not only local banks and investors that are going to participate in that – once the CSD is running – the whole world will have access to Namibia’s investments, whether bonds or shares,” he said.
The introduction of the CSD is important to Namibia’s financial market infrastructure.
“It will hold financial securities such as stocks and bonds in electronic form, facilitating the role of securities ownership on record,” !Gawaxab said.
The operationalisation of the CSD would ensure enhanced access of Namibia’s debt instruments to investors globally.
“It is a big transformation to get a CSD running. You are going to get foreign investors participating in our capital markets,” he said.
Central role
Meanwhile, the Namibia Financial Institutions Supervisory Authority (Namfisa) in March approved the establishment of the Central Securities Depository (CSD) Limited.
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,” Raimond was quoted as saying at the time.
“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,” she added.

NEW: The Bank of Namibia is supporting a process to establish a central securities depository. PHOTO: