Proposed mining policy spooks Namibia’s market hopes
Ogone Tlhage
The Namibia Securities Exchange (NSX) Chief Executive, Tiaan Bazuin, has warned that policy uncertainty, including the proposed 51% local ownership rule for mining and the New Equitable Economic Empowerment Framework (NEEEF), discourages companies from listing, thereby stifling investment.
Speaking on the Business 7 show, Bazuin urged the government to restore policy clarity to revive Namibia’s reputation as an investor-friendly destination and unlock economic growth.
“We saw that this kept many companies from coming to market because they did not have normalised earnings. There can often be reasons why companies don’t list, but I think post-Covid, if we have a clear policy situation with the government, we can attract more listings. The 51% mining local ownership discussion has already thrown a spanner in the works,” he said.
According to Bazuin, Namibia has long been praised for its policy environment, and restoring certainty would make it easier to attract investment into the country. “We need policy certainty, and I think, for a long time, that has been the key strength of Namibia’s investment landscape. But we need to work on that again to get it where it should be,” he added.
Referring to NEEEF, Bazuin noted that its policy pillars had created uncertainty for investors. “I know initially, when the New Equitable Economic Empowerment Framework was still on the table, there was a discussion around what would qualify as compliance. At the time, that uncertainty kept many companies from coming to market.”
Bazuin also commented on recent remarks by Nedbank Group CEO Jason Quinn, who said the banking group was considering increasing local ownership in its Namibian subsidiary.
“They were the one outlier in the banking sector that never came to market, and some of the previous statements around this were certainly not as positive as we heard from the Group CEO. I think it would be wonderful if Nedbank listed [on the NSX],” Bazuin said.
Meanwhile, local economist Rowland Brown voiced concern about pronouncements suggesting a 51% equity stake in new mining ventures, saying such statements risk deterring investment.
“The last time (2015/2016) we made anti-investment, inward-looking noises like those being made now, it came at a heavy price for growth, employment, and fiscal metrics. The impact of this period can still be seen and felt today, with unemployment at 55%, little non-mining investment, and limited fiscal space. This period should be a cautionary tale, not a model for emulation,” he wrote on LinkedIn.
The Namibia Securities Exchange (NSX) Chief Executive, Tiaan Bazuin, has warned that policy uncertainty, including the proposed 51% local ownership rule for mining and the New Equitable Economic Empowerment Framework (NEEEF), discourages companies from listing, thereby stifling investment.
Speaking on the Business 7 show, Bazuin urged the government to restore policy clarity to revive Namibia’s reputation as an investor-friendly destination and unlock economic growth.
“We saw that this kept many companies from coming to market because they did not have normalised earnings. There can often be reasons why companies don’t list, but I think post-Covid, if we have a clear policy situation with the government, we can attract more listings. The 51% mining local ownership discussion has already thrown a spanner in the works,” he said.
According to Bazuin, Namibia has long been praised for its policy environment, and restoring certainty would make it easier to attract investment into the country. “We need policy certainty, and I think, for a long time, that has been the key strength of Namibia’s investment landscape. But we need to work on that again to get it where it should be,” he added.
Referring to NEEEF, Bazuin noted that its policy pillars had created uncertainty for investors. “I know initially, when the New Equitable Economic Empowerment Framework was still on the table, there was a discussion around what would qualify as compliance. At the time, that uncertainty kept many companies from coming to market.”
Bazuin also commented on recent remarks by Nedbank Group CEO Jason Quinn, who said the banking group was considering increasing local ownership in its Namibian subsidiary.
“They were the one outlier in the banking sector that never came to market, and some of the previous statements around this were certainly not as positive as we heard from the Group CEO. I think it would be wonderful if Nedbank listed [on the NSX],” Bazuin said.
Meanwhile, local economist Rowland Brown voiced concern about pronouncements suggesting a 51% equity stake in new mining ventures, saying such statements risk deterring investment.
“The last time (2015/2016) we made anti-investment, inward-looking noises like those being made now, it came at a heavy price for growth, employment, and fiscal metrics. The impact of this period can still be seen and felt today, with unemployment at 55%, little non-mining investment, and limited fiscal space. This period should be a cautionary tale, not a model for emulation,” he wrote on LinkedIn.
