Africa-Press – Namibia. The government has approved a regulatory framework that allows the Namibia Stock Exchange (NSX) to change its structure and become a for-profit, publicly owned company.
The amendment, published in the government gazette dated 31 October 2025, marks the end of years of discussion and sets the stage for the local bourse to become more competitive and growth-driven.
The process, known as demutualisation, will see the NSX move from being a non-proprietary voluntary association or member-owned entity to a public company with share capital under the Companies Act of 2004.
“This strategic shift is a well-trodden path for major global exchanges, including the Johannesburg Stock Exchange and the London Stock Exchange, which used similar transformations to unlock capital, improve governance, and pursue new strategic opportunities,” the gazette reads.
The gazetting approved by the Namibia Financial Institutions Supervisory Authority (Namfisa) provides the legal framework for the transition.
Registrar of stock exchanges Kenneth Matomola confirmed the approval, saying the amendment was issued under the Stock Exchanges Control Act of 1985.
“This formal step now empowers the NSX’s current members, known as ‘rights holders’, to begin the process of voting on their future,” the gazette states.
As part of the plan, existing membership rights will be converted into shares.
Broker members will receive twenty shares for every one NSX right they hold, while non-broker members will receive one share per right. The allocation is intended to reflect the different levels of participation among members.
To prevent excessive control, the rules include ownership limits.
“No single entity will be permitted to hold more than 10% of the voting shares without prior regulatory approval, and broker members collectively must reduce their total shareholding to no more than 40% within three years of the demutualisation date,” the gazette states.
Before the process is finalised, NSX rights holders must pass several special resolutions at a general meeting.
At least 75% of the votes cast, with a strong quorum present, are required for approval before a final application is made to Namfisa.
Analyst Alex Abel said the change represents an important step for Namibia’s financial sector.
“This is more than a legal change; it’s a strategic necessity. Demutualisation will allow the NSX to access new capital, make strategic investments in technology, and potentially pursue partnerships that were not feasible under the old mutual structure. It fundamentally aligns the exchange’s future with the broader growth of the Namibian economy,” the analyst said.
The gazette confirmed that all the NSX’s assets, liabilities, legal agreements and registrations will be automatically transferred to the new company to ensure a smooth transition and maintain investor confidence.
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