Namibia Launches Central Securities Depository, Ushering in Fully Digital Capital Market Era
The new CSD replaces paper-based securities registration and settlement with an electronic, integrated platform that will house securities digitally, support electronic clearing and settlement, and manage corporate actions.
The Namibia Securities Exchange (NSX), working alongside the Bank of Namibia (BoN) and under the oversight of NAMFISA, has officially launched the Central Securities Depository Limited (CSD), marking a major step in the digital transformation of the country’s capital markets.
The rollout of the CSD ends years of delays caused by outdated regulations that previously prevented its establishment. Following regulatory reforms and the issuing of a licence in March 2024, the NSX, BoN and financial market players collaborated to design and implement a fully electronic post-trade system.
The new CSD replaces paper-based securities registration and settlement with an electronic, integrated platform that will house securities digitally, support electronic clearing and settlement, and manage corporate actions. All payments will now be processed through the Bank of Namibia in line with international financial market infrastructure standards.
The implementation introduces key improvements, including faster and more efficient settlement through delivery-versus-payment mechanisms, reduced counterparty and operational risks, elimination of paper certificates, and enhanced security. It also strengthens issuer and investor services by streamlining corporate actions and enabling accurate ownership records. The modernised system is expected to boost liquidity and make Namibia’s market more attractive to both local and international investors.
The transition is also set to bring benefits across the market ecosystem. Issuers will experience reduced administrative workloads and quicker processing of corporate actions, while investors will see shorter settlement cycles, transparent records, and lower risks associated with physical certificates. Overall, the upgraded infrastructure creates a stronger platform for capital market growth, improved foreign investor confidence, and alignment with global best practices.
In the coming months, the CSD will continue onboarding all market participants, migrate existing securities into the digital system, and introduce full automation of the new settlement framework. Training, integration support and stakeholder engagement will guide institutions through the transition.
Five institutions have been approved as Central Securities Depository Participants (CSDPs), forming the core of Namibia’s new post-trade environment. These are Rand Merchant Bank, Standard Bank Namibia, NSX Financial Market Services, the Bank of Namibia, and Nedbank Namibia. They will facilitate investor access, maintain client accounts and ensure compliance with custody and settlement requirements. Additional participants may join in the future as the system expands.
