The Namibia Securities Exchange (NSX), in collaboration with the Bank of Namibia (BoN) has launched the Central Securities Depository Limited (CSD).
The CSD replaces traditional paper-based securities registration and settlement with a fully electronic, integrated system.
Speaking at the launch yesterday, Bank of Namibia (BoN) governor Johannes !Gawaxab said the CSD will now hold securities in electronic form, facilitate electronic clearing, settlement and registration, and manage corporate actions efficiently.
Payments related to securities will be processed directly through BoN, aligning with the International Organisation of Securities Commissions Principles for financial market infrastructure.
“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 !Gawaxab.
Currently, the CSD operates in partnership with five approved central securities depository participants, which provide investor access, maintain client accounts and ensure compliance with settlement and custody standards.
These institutions include Rand Merchant Bank, Standard Bank Namibia, NSX Financial Market Services, Bank of Namibia and Nedbank Namibia.
In the upcoming months, the CSD will focus on onboarding all market participants, migrating existing securities into the electronic system, and fully automating the settlement process.
NSX Group chief executive Tiaan Bazuin says the industry will receive comprehensive training and support through system integration projects and ongoing stakeholder engagements to ensure a seamless transition.
He adds that for over 10 years, outdated regulations prevented the establishment of a central depository.
“The go-live of the CSD is a transformative moment for Namibia’s capital markets. It signals our commitment to modern infrastructure, efficiency and international competitiveness,” says Bazuin.
He says the new system will boost investor confidence and deliver a secure, efficient post-trade environment.
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