The Namibia Financial Institutions Supervisory Authority (NAMFISA) says unlisted investments are emerging as a vital avenue for economic growth in the country, particularly through venture capital and development finance.
NAMFISA General Manager for Pension Funds and Friendly Societies, Lovisa Indongo-Namandje, said small and medium-sized enterprises (SMEs), essential for job creation and innovation, often struggle to access the necessary capital to scale operations.
She said pension funds play a crucial role in this landscape by investing in unlisted assets, fulfilling their fiduciary duties while driving economic development.
“These funds have demonstrated commendable commitment to optimising their overall portfolio by diversifying investments beyond traditional markets and targeting sectors within the real economy,” she said during a recent Pension Funds industry engagement.
Indongo-Namandje noted the strategy, which involves significant allocations to unlisted investments, serves two vital objectives, which include generating sustainable returns for pension members and supporting the broader development goals of Namibia.
This comes as of March 2024, NAMFISA regulates a burgeoning unlisted investment sector valued at N$4 billion, encompassing 21 special purpose vehicles (SPVs) and 31 unlisted investment managers (UIMs).
NAMFISA hosted the Pension Funds industry engagement, bringing together key stakeholders in the financial industry to explore the role of unlisted investments in bridging funding gaps and fostering economic growth in Namibia.
The event, themed “Unlisted Investments as a Solution for Bridging Funding Gaps in the Economy,” aimed to ignite discussions on how unlisted investments can support venture capital financing, development finance, and other key areas that contribute to Namibia’s economic development.
The engagement also included presentations from businesses that have benefitted from unlisted investments and highlighted the advantages of these investments to pension funds, their members, and the Namibian economy at large.
The Capital Markets unit recently presented insights into unlisted investments in Namibia, addressing challenges local businesses face in accessing funding and the potential for these investments to create long-term value.
Key outcomes of the discussion included sparking a conversation about the role of unlisted investments in the Namibian economy, hearing from businesses that have benefitted from them, and raising awareness of their tangible impact on economic development.
According to NAMFISA, the discussion also emphasised the role of pension funds in Namibia’s economic growth and shared lessons learned since the introduction of unlisted investment requirements.
Representatives from Mashare Berries Farming and II-Omburu Sun Energy detailed how unlisted investments have supported their business growth and contributed to the broader economy.
