Developments in the Namibian capital markets have been geared towards creating further investment options for local investors, as witnessed by the listing of four exchange traded funds (ETFs) in 2014. While there have been discussions around the creation of a CSD in Namibia, progress has been slow and there is no definitive view as to when this will happen.

Foreign investor activity in the market has picked up slightly but the market remains fairly small and inactive compared to most other markets in Africa, says Corny Zaaruka, head of investor services at Standard Bank Namibia. “The sub-custody market is small and has little activity.

The custody business is dominated by local clients investing in Namibia, South Africa and to a small extent markets outside of Africa. This business represents over 90% of the custody business in Namibia in terms of asset size.” There are three active custodians in the market, all three of whom offer sub-custody services, but the market is dominated by Standard Bank, which has a market share of more than 85%.