Investment funds increase to N$304.9b

Namibia’s investment industry grew to N$304.9 billion in the second quarter of 2025, supported by stronger pension fund assets, growth in unit trusts, and gains recorded by investment managers.

The latest Capital Markets Report by the Namibia Financial Institutions Supervisory Authority (NAMFISA) shows that total funds under management increased from N$289.9 billion in the first quarter of 2025 to N$265.2 billion in the same period last year.

The report states that “all three segments experienced double-digit growth”, with linked investment service providers (LISPs) recording the fastest expansion at 22%, highlighting their growing role in the investment industry.

“Pension funds remained the largest contributor to Namibia’s capital markets, with assets reaching N$127.8 billion, followed by unit trust schemes at N$106.4 billion,” the report said.

The report notes that “the sector continues to be anchored by large institutional investors, while retail investors are steadily increasing their footprint”.

“Investments by natural persons increased to N$6.5 billion, indicating a gradual rise in individual participation in the country’s investment market,” the report says.

The growth in funds under management was also supported by strong portfolio performance. Investment managers recorded N$18.7 billion in unrealised gains and N$4.4 billion in realised gains during the quarter.

The report states that the results highlight a quarter of robust portfolio performance, driven by both domestic and offshore exposure.

“Namibia’s investment landscape also showed a shift towards greater diversification. While domestic investments remained dominant at N$156.5 billion, offshore investments increased from N$35.3 billion in the second quarter of 2024 to N$52.4 billion during the same period in 2025,” the report said.

According to the report, the standout growth came from offshore allocations, which increased by nearly 50% year on year.

It added that the movement reflected investors’ efforts to diversify their portfolios and manage currency and market risks.

Trading activity on the Namibia Securities Exchange (NSX) also improved, with the number of securities traded rising to 3.78 million, compared with 2.72 million in the previous quarter and 2.40 million in the second quarter of 2024.

Market performance was supported by gains in regional markets, with the Johannesburg Stock Exchange All Share Index rising to 96 429.70 and the NSX Local Index to 727.20.

The capital markets industry remained stable during the period, with 66 registered entities operating in the sector. No new entities entered the market, and no companies were deregistered.

However, the report highlighted that Namibia’s capital markets remain concentrated among a few institutional investors.

It said that expanding retail investor participation, developing new financial products and strengthening market infrastructure would be important to support long-term growth.

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