Namibian Stock Exchange CEO on sustainability, listings outlook

The Namibian Stock Exchange, the second largest in Africa, has experienced gains of around 5 per cent over the past year. Tiaan Bazuin, the CEO of the stock exchange, recently shared insights on the economic landscape of Namibia, including discussions on inflation, interest rate dynamics, and the impact on the stock market. Bazuin predicts a lower interest rate environment over the medium term, with potential relief for those who have not fixed their investment rates. He believes that interest rates will gradually decrease next year, leading to opportunities for capitalizing through the exchanges. The currency market, particularly the Rand, plays a crucial role in the economy of Namibia. Bazuin expresses optimism regarding positive developments in the market, indicating a potential increase in equity and bond activities as interest rates shift. While there has been a decline in listings across various markets, including Namibia, Bazuin anticipates a revival as interest rates decrease. Despite a scarcity of IPOs in Namibia, recent discoveries of significant oil reserves in the country could drive the need for companies to raise capital for expansion, consequently boosting listings and market growth in the future. Namibia has also seen an increasing interest in sustainable financing, with oversubscribed sustainable and green bond offerings. However, the push for sustainability reporting has raised concerns about standardization and enforcement, prompting discussions among African stock exchanges to streamline reporting standards and potentially make them mandatory. Bazuin highlights the importance of balancing sustainability initiatives with practicality to ensure wider compliance and adoption. In other developments, the Namibian Stock Exchange has achieved full membership status in the World Federation of Exchanges, enhancing investment opportunities in NSX stocks. Additionally, the exchange has obtained a Central Securities Depository (CSD) license, signaling progress towards electronic trading and dematerialization of securities. Bazuin's focus remains on integrating the exchange with the RTGS payment system for efficient transactions and transitioning to electronic scripts for seamless trading. As the market evolves, Bazuin emphasizes the importance of staying updated on advancements and potential future collaborations.