Economy
What is Behind South Africa’s and Namibia’s Capital Market Developments?
When diamonds and gold were found in South Africa in the late 1800s, the economy was transformed. Following that, a large amount of global money was invested.
The nation has grown a well-developed industrial base in the years after World War II, and it has undergone extremely volatile growth rates, including several years when it was among the highest in the world.
South Africa, on the other hand, has had persistent economic difficulties since the late 1970s, owing to its apartheid policies, which caused many countries to suspend foreign investment and enforce more harsh trade restrictions against it.
Namibia has been classified as a lower-middle-income country with a per capita gross domestic product (GDP) that is slightly higher than the average for Sub-Saharan African countries.
However, the summary is deceptive. Only one-quarter of all Namibians and one-sixth of black Namibians have decent incomes; up to two-thirds of the population lives in abject poverty with inadequate access to public services. Because of a declining productive industry, a shortage of capital stock and serious world market problems for base metals and uranium oxide, economic development remains a challenge.
Furthermore, unless foreign assistance investments quickly turn into significant real inflows and private external investment in mining, manufacturing, and fisheries occurs, the one segment of the GDP that expanded steadily in the 1980s would decrease.
South Africa
The South African Reserve Bank, which is the sole issuing authority for the rand, the national currency, has a well-developed financial structure. It is in charge of monetary policy formulation and implementation, as well as managing foreign exchange trades.
There are several licensed banking institutions, many of which focus on commercial banking, as well as merchant, deposit, and investment banking, to name a few.
The Development Bank of Southern Africa, for example, is a quasi-governmental organization that promotes development programs. The banking market is dominated by private pension and provident funds, as well as more than two dozen insurance providers. The Johannesburg Stock Exchange is the centre of an active capital market.
South Africa, Africa’s second-largest economy after Nigeria, has a GDP that is far greater than that of its sub-Saharan neighbours. The Johannesburg Stock Exchange (JSE), which is 132 years old and has a market capitalization of more than USD1 trillion, is the biggest stock exchange in Africa.
The JSE is a comprehensive and cutting-edge exchange that offers complete electronic trading, clearing, and settlement of stocks, shares, and interest-rate securities, as well as financial, asset, and currency trading in South Africa.
On the JSE, there are approximately 350 companies listed, with industrials being the largest grouping, led by energy companies such as mines and oil companies.
The JSE, on the other hand, is facing strong headwinds. After decades with little competition, the JSE is now being tested by smaller competitors such as ZAR X, a low-cost model launched in 2016 to offer stock access to lower-income individuals.
Since then, new entrants have entered the ring, including A2X, 4AX, and the Equity Express Securities Exchange, which focuses on black economic empowerment. The market is currently focused on the newly implemented ‘twin peaks’ regulatory model, which response to weak financial sector policies and insufficient regulatory supervision.
It is intended to promote consumer trust and stimulate capital formation, much as it was in Australia, where the concept first debuted.
Namibia Profile
The majority of banking activity is handled by two commercial banks, First National Bank of Southern Africa and Standard Bank Namibia (both branches of South African parent companies). Following independence, land, infrastructure, and development banks were reorganized. In the mid-1990s, the Central Bank of Namibia introduced the Namibian dollar as an independent currency to replace the South African rand.
The Namibian Stock Exchange (NSX) currently has 50 listed companies. Namibia has the second-lowest population density of any sovereign nation, with just 2.6 million people.
The NSX was established in 1904 to help finance the country’s diamond rush. The rush was over by 1910, and the exchange was suddenly closed. The NSX did not reopen until 1992, 82 years later, with start-up funding from 36 Namibian companies.
Despite the fact that agriculture and tourism are important parts of the economy, other industries dominate the stock exchange. In reality, three industries account for half of the NSX’s listings: banking (four companies), mining (seven companies), and finance (three companies).
It is only recently that debt has been issued and listed. Namibia had virtually no public debt until 2011. In reality, the nation had one of the lowest debt-to-GDP ratios in the world, at just 16 per cent of GDP. International rating agencies downgraded the country to a sub-investment rating in 2017 due to the dramatic increase in public debt.
Namibian state-owned corporations and private businesses have floated bonds worth more than NAD33 billion (approximately £1.73 billion) on the NSX. As traditional financing sources dry up, more Namibian firms are expected to issue bonds in the immediate future. Because of the economic crisis, banks’ balance sheets and loan-to-deposit ratios have been strained, and they are less likely to lend to corporations.
The withdrawal of traditional finance provides an incentive for small businesses to raise money from their balance sheets, collateralized or government-guaranteed debt securities, or stock offerings on the local exchange.
The Report
From a small lunch party in New York City in 1937 to a vast array of 170,000 members and 157 societies in 2019, the Investment Club has grown to become the world’s largest investment organization, dedicated to leading the investment profession internationally for the ultimate good of society.
Early colonial times saw the establishment of several African exchanges. After the diamond and gold rush, South Africa led the way, followed by Zimbabwe, Egypt, and Namibia (at the time, a German colony) – all before 1905. Some businesses did not survive the commodity boom, but most are flourishing despite being significantly diversified and modernized.
Nigeria in the 1960s; Botswana, Mauritius, and Ghana in 1989; Namibia after its independence from South Africa in the 1990s.
Others, especially the East African exchanges, are relatively recent and are rapidly growing in popularity. All of these examples show how regulation, trading technologies, and fintech are allowing more market players to participate in finance and investing in a fairer, quicker, and lower-cost manner.
The African Securities Exchanges Association collaborated on the CFA Institute Research Foundation brief (ASEA).
By Adedapo Adesanya
TotalEnergies EP Nigeria has signed a Sale and Purchase Agreement with Vaaris for the divestment of its 10 per cent non-operated interest in the Renaissance JV licences in Nigeria.
The Renaissance JV, formerly known as the SPDC JV, is an unincorporated joint venture between Nigerian National Petroleum Company Limited (55 per cent), Renaissance Africa Energy Company Ltd (30 per cent, operator), TotalEnergies EP Nigeria (10 per cent) and Agip Energy and Natural Resources Nigeria (5 per cent), which holds 18 licences in the Niger Delta.
In a statement by TotalEnergies on Wednesday, it was stated that under the agreement signed with Vaaris, TotalEnergies EP Nigeria will sell its 10 per cent participating interest and all its rights and obligations in 15 licences of Renaissance JV, which are producing mainly oil.
Production from these licences, it was said, represented approximately 16,000 barrels equivalent per day in company’s share in 2025.
The agreement also stated that TotalEnergies EP Nigeria will also transfer to Vaaris its 10 per cent participating interest in the three other licences of Renaissance JV which are producing mainly gas, namely OML 23, OML 28 and OML 77, while TotalEnergies will retain full economic interest in these licences, which currently account for 50 per cent of Nigeria LNG gas supply.
Business Post reports that the conclusion of the deal is subject to customary conditions, including regulatory approvals.
“TotalEnergies EP Nigeria has signed a Sale and Purchase Agreement with Vaaris for the sale of its 10 per cent non-operated interest in the Renaissance JV licences in Nigeria.
“Under the agreement signed with Vaaris, TotalEnergies EP Nigeria will sell to Vaaris its 10 per cent participating interest and all its rights and obligations in 15 licences of Renaissance JV, which are producing mainly oil. Production from these licences represented approximately 16,000 barrels equivalent per day in the company’s share in 2025.
“TotalEnergies EP Nigeria will also transfer to Vaaris its 10 per cent participating interest in the 3 other licenses of Renaissance JV, which are producing mainly gas (OML 23, OML 28 and OML 77), while TotalEnergies will retain full economic interest in these licenses, which currently account for 50 per cent of Nigeria LNG gas supply. Closing is subject to customary conditions, including regulatory approvals,” the statement reads in part.
The development is part of TotalEnergies’ strategies to dump more assets to lighten its books and debt.
By Aduragbemi Omiyale
The trading licence of Monument Securities and Finance Limited has been revoked by the regulatory arm of the Nigerian Exchange (NGX) Group Plc.
Known as NGX Regulations Limited (NGX Regco), the regulator said it took back the operating licence of the organisation after it shut down its operations.
The revocation of the licence was approved by Regulation and New Business Committee (RNBC) at its meeting held on September 24, 2025, a notice from the signed by the Head of Market Regulations at the agency, Chinedu Akamaka, said.
“This is to formally notify all trading license holders that the board of NGX Regulation Limited (NGX RegCo) has approved the decision of the Regulation and New Business Committee (RNBC)” in respect of Monument Securities and Finance Limited, a part of the disclosure stated.
Monument Securities and Finance Limited was earlier licensed to assist clients with the trading of stocks in the Nigerian capital market.
However, with the latest development, the firm is no longer authorised to perform this function.
Economy
NEITI Advocates Fiscal Discipline, Transparency as FG, States, LGs Get N6trn in Three Months
By Adedapo Adesanya
The Nigeria Extractive Industries Transparency Initiative (NEITI) has called for fiscal discipline and transparency as data showed that federal government, states, and local governments shared a whopping N6 trillion Federation Account Allocation Committee (FAAC) disbursements in the third quarter of last year.
In its analysis of the FAAC Q3 2025 allocation, the body revealed that the federal government received N2.19 trillion, states received N1.97 trillion, and local governments received N1.45 trillion.
According to a statement by the Director of Communication and Stakeholders Management at NEITI, Mrs Obiageli Onuorah, the allocation indicated a historic rise in federation account receipts and distributions, explaining that year-on-year quarterly FAAC allocations in 2025 grew by 55.6 per cent compared with Q3 of 2024 while it more than doubling allocations over two years.
The report contained in the agency’s Quarterly Review noted that the N6 trillion included 13 per cent payments to derivative states. It also showed that statutory revenues accounted for 62 per cent of shared receipts, while Value Added Tax (VAT) was 34 per cent, and Electronic Money Transfer Levy (EMTL) and augmentation from non-oil excess revenue each accounted for 2 per cent, respectively.
The distribution to the 36 states comprised revenues from statutory sources, VAT, EMTL, and ecological funds. States also received additional N100 billion as augmentation from the non-oil excess revenue account.
The Executive Secretary of NEITI, Mr Sarkin Adar, called on the Office of the Accountant General of the Federation, the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) FAAC, the National Economic Council (NEC), the National Assembly, and state governments to act on the recommendations to strengthen transparency, accountability, and long-term fiscal sustainability.
“Though the Quarter 3 2025 FAAC results are encouraging, NEITI reiterates that the data presents an opportunity to the government to institutionalise prudent fiscal practices that will protect the gains that have been recorded so far in growing revenue and reduce vulnerability to commodity shocks.
“The Q3 2025 FAAC results are encouraging, but windfalls must be managed with discipline. Greater transparency, realistic budgeting, and stronger stabilisation mechanisms will ensure these resources deliver durable benefits for all Nigerians,” Mr Adar said.
NEITI urged the government at all levels to ensure the growth of Nigeria’s sovereign wealth and stabilisation capacity, by committing to regular transfers to the Nigeria Sovereign Wealth Fund and other related stabilisation mechanisms in line with the fiscal responsibility frameworks.
It further advised governments at all levels to adopt realistic budget benchmarks by setting more conservative and achievable crude oil production and price assumptions in the budget to reduce implementation gaps, deficit, and debt metrics.
This, it said, is in addition to accelerating revenue diversification by prioritising reforms that would attract investments into the mining sector, expedite legislation to modernise the Mineral and Mining Act, support reforms in the downstream petroleum sector, as well as the full implementation of the Petroleum Industry Act (PIA) to expand domestic refining and value addition.
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism9 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz3 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking8 years agoSort Codes of GTBank Branches in Nigeria
-
Economy3 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Banking3 years agoSort Codes of UBA Branches in Nigeria
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn