THE Namibia Securities Exchange (NSX), in partnership with the Bank of Namibia (BoN) and under the oversight of the Namibia Financial Institutions Supervisory Authority (NAMFISA), has announced that the Central Securities Depository Limited (CSD) has officially gone live in Namibia, marking a major milestone in the modernisation of the country’s capital markets.
Tjiundja Kazohua, Chief Regulatory Officer at the NSX, explained that for more than a decade, outdated regulations had prohibited the establishment of a CSD. However, with regulatory reforms and the issuance of a licence on 8 March 2024, the NSX, BoN, and financial market participants worked together to design and implement the Central Securities Depository.
PARTNERS: Scenes from the launch of the CSD. Photo: Bank of Namibia.
“The launch of the CSD represents a significant transition from paper-based securities registration and settlement to a fully electronic, integrated system. The CSD will hold securities in electronic form, facilitate electronic clearing, settlement, and registration, and manage corporate action events. All payments will be made to the Bank of Namibia, in accordance with the IOSCO Principles for Financial Market Infrastructures,” Kazohua said.
She added that the system would offer enhanced market efficiency and speed, enabling delivery-versus-payment (DVP) mechanisms, thereby reducing counterparty and settlement risk.
Kazohua also noted that dematerialisation eliminates the reliance on paper certificates, mitigating fraud and manual processing errors.
“The CSD manages issuance functions, streamlines corporate actions, and facilitates accurate ownership registration. The modernised infrastructure paves the way for both domestic and international investors to participate more easily in Namibian securities markets,” Kazohua said.
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,” said Dr. Johannes !Gawaxab, Governor of the Bank of Namibia.
“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.
