Namibians should value local market - Sanlam

WINDHOEKSTAFF REPORTER
While Namibia's close business relations with South Africa might irk some, the country's open policy towards its southern neighbour is a good incentive for investors.
This was the view of Sanlam Namibia Holdings chief executive officer, Tertius Stears, speaking on the company's 'Sanlam Food for Thought' programme on Namibian Broadcasting Corporation (NBC) this week.
“From a business and financial perspective, we have always been very close with South Africa, and with our currencies pegged it has always been easy to sit in Namibia and transact in the SA market. Many South African businesses also have operations in Namibia,” Stears said, when asked about Namibia's perceived dependency on SA.
“If we take a look at the local listed shares, these have given a better return compared to South African shares,” he says, adding that in terms of a five-year comparison, the NSX local index gave a 16% annualised return, compared to 6% on the Johannesburg All Share Index.
“This has a lot to do with higher risk, less diversification and low liquidity, but it's still a very good return considering the world economies over the last five years,” he said.
Noting that Namibians need to become a lot more active in the local economy, Stears referred to a recent drive by the country's institutions to invest in local operations.
These include a pension fund regulation that requires at least 35% of investments to be made into the local market.
“This means that any portfolio classified as pension fund investments for tax or regulatory purposes have to invest at least 35% of its portfolio in Namibian instruments,” he said.
“Not only has this (drive towards local investments) been driven by regulatory changes, but also Namibia having a stable economic environment and offering business opportunities to grow and expand more than other comparative countries, meaning we have great investment opportunities in our own country, rather than elsewhere,” he said.