Namibian investors can now invest in silver through the Namibia Securities Exchange (NSX), following the listing of a new silver investment product on the local stock market.
The NewWave Silver Exchange Traded Note (ETN) was dual-listed on the NSX on Friday under the code NWNSLV, while its main listing is on the Johannesburg Stock Exchange under the code NEWSLV.
The listing was announced by Absa, Cirrus Securities and the NSX.
In simple terms, the product allows investors to benefit from changes in the price of silver without having to buy, store or physically own silver.
The ETN follows the price performance of silver and trades in Namibia dollars on the NSX.
NSX chief executive Tiaan Bazuin says the listing was part of efforts to give Namibians more investment choices.
“The NSX mandate to deepen and diversify the Namibian capital market has progressed well through the introduction of various ETFs and ETNs, such as today’s NewWave Silver ETN,” says Bazuin.
He says the development also highlighted the need for Namibia’s financial regulations to keep pace with new investment products.
“Regulation 13 was last updated more than 10 years ago and does not cater for these new products,” says Bazuin.
He says the NSX had made recommendations to the Namibia Financial Institutions Supervisory Authority and the Ministry of Finance to update the regulations.
Bazuin says this would allow asset managers and pension funds to access a wider range of investment products and reduce the risks of putting too much money into one type of investment.
Absa Corporate and Investment Banking head of exchange traded products Michael Mgwaba says the listing would give Namibian investors access to an international investment opportunity through the local stock exchange.
“The secondary listing of the Absa NewWave Silver ETN on the NSX is a meaningful step in broadening investor choice, deepening Namibia’s capital markets and connecting local investors to global investment opportunities,” says Mgwaba.
He says the listing shows Absa’s commitment to developing African capital markets.
“For Namibia, this listing expands access to a globally relevant investment theme through a local exchange,” says Mgwaba.
Cirrus Securities managing director designate Robert McGregor says silver was important both as an industrial metal and as an investment.
“We are proud to have facilitated the listing of the NewWave Silver ETN on the NSX,” says McGregor.
He says the product gives investors a way to add silver exposure to their investments without having to deal with the physical metal.
“Silver has long been a metal of both industrial and investment significance, and this instrument gives Namibian investors a transparent, cost-efficient way to add commodity exposure to their portfolios,” says McGregor.
The NewWave Silver ETN follows earlier collaborations between Cirrus Securities and Absa, including the NewGold range of exchange-traded funds and the Namibia Bond ETF.
The latest listing adds another commodity-linked investment option to the Namibian market.
