This will be a four part series. The next articles will cover how unit trusts are taxed in Namibia and the companies that offer the best returns on investment.
Many Namibians keep their money in bank accounts or spend what they earn each month. But there are other ways to save and grow money over time.
One option is a unit trust.
A unit trust allows many people to put their money together and invest it in things such as shares, government and company bonds, and other investments. A professional fund manager then manages the money on behalf of the investors.
This means you do not need to have millions of dollars to start investing.
How does a unit trust work?
A unit trust is a collective investment scheme that pools capital from a multitude of small investors to acquire a diversified basket of assets.
Think of it as a literal basket where different people put money.
Instead of putting all your money into one investment, your money is combined with that of many other investors. The fund manager uses the money in the basket to buy different investments.
If you invest N$500, for example, you own a small portion of the overall fund. If the investments grow in value, your money can grow too.
The advantage is that you get access to a range of investments without having to buy each one yourself.
Unit trusts have been around for more than 150 years. One of the earliest examples was established in the United Kingdom in 1868.
A N$126.5 Billion Industry
Unit trusts are already a major part of Namibia’s financial sector.
Namibia Financial Institutions Supervisory Authority data for the first quarter of 2026 shows that Namibia’s collective investment scheme industry was worth N$126.5 billion.
The industry grew by 2.5% during the quarter and 16.7% compared with the same period a year earlier.
Three major players account for more than half of the industry’s assets:
Capricorn Unit Trust Management Company manages 35.5%, followed by Ashburton at 13.5% and Old Mutual at 8.9%.
Where Does The Money Go?
Most of the money in Namibia’s unit trust industry is invested in relatively safer investments.
About 54.8% is invested in money-market instruments, while 22.2% is invested in listed debt such as government and company bonds.
A significant amount of the money also stays in Namibia.
About 60.4%, or N$76.4 billion, is invested domestically.
This is important because money invested in Namibia can help provide funding to local businesses and the government.
The Power of Starting Early
One of the biggest advantages of investing is compound growth.
This simply means that you earn money on your original investment and, over time, you can also earn money on the returns you have already made.
For example, if your investment earns interest or dividends and those returns are left in the investment, the amount you earn can increase as your investment grows.
This is why starting early can make a big difference. You do not necessarily need to start with a large amount of money. What matters is giving your money enough time to grow.
Why Saving Matters in Namibia
Saving is not only good for individuals. It also matters for the overall economy.
According to the Bank of Namibia’s 2024 Financial Stability Report, Namibian household debt stood at 40.5% of disposable income in 2023.
In simple terms, many households are using a large part of their income to pay debts.
At the same time, inflation reduces what your money can buy. Namibia’s inflation rate reached 7.3% in August 2022, before falling to 3.2% in January 2025, according to the Namibia Consumer Price ndex Bulletin.
This means simply keeping money aside is not always enough. People also need to think about how to protect and grow their savings over the long term.
You Don’t Need N$75 000 to Start
For many years, some investment products were out of reach for ordinary Namibians because they required large amounts of money to get started.
A minimum investment of N$75 000, for example, would be difficult for someone earning a starting salary. But the market is changing.
Some providers now allow people to start with much smaller amounts, including N$1 000, while some allow monthly payments of around N$200 to N$300.
This makes investing more accessible to young people and people who cannot afford to put aside a large amount at once.
The important lesson is that you do not have to wait until you are wealthy before you start investing.
