Leveraging Pension Fund Investment for Domestic Development : Namibia’s Regulation 29 Approach
The note describes Namibia’s approach to support domestic economic development via mandating investment of a percentage of the large pool of local institutional capital in alternative financing vehicles within the context of an underdeveloped capit...
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| Format: | Working Paper |
| Language: | English |
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World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/125241594367606090/Leveraging-Pension-Fund-Investment-for-Domestic-Development-Namibia-s-Regulation-29-Approach http://hdl.handle.net/10986/34332 |
| Summary: | The note describes Namibia’s approach to
support domestic economic development via mandating
investment of a percentage of the large pool of local
institutional capital in alternative financing vehicles
within the context of an underdeveloped capital market.
Namibian approach diverges from international practice.
Namibia Financial Institutions Supervisory Authority
(NAMFISA) – the national regulator - instituted mandatory
requirements that all pension (and insurance) funds invest
in unlisted Namibian companies, formalized the unlisted
investment market, created specialized intermediaries and
introduced high level of regulatory oversight for both
investment managers and investment vehicles. The note
describes the investment vehicles and regulatory structure
established by NAMFISA, experience of market participants
and perspective of the nascent asset management industry
managing unlisted investments. The note also summarizes
lessons learnt and considers whether such structures could
be applied in countries with similar market and economic contexts. |
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