If you had invested N,000 in 2024, the investment landscape in Namibia would have rewarded you handsomely, especially if you placed your bet on equities. By the end of the year, your investment in the Cirrus Namibia Capped Dual Listed Equity Index (CNDCLI) would have boasted a healthy increase, growing to N,072 and delivering a stellar 20.7% return. That’s right—Namibian investments are proving to be as vibrant as ever!
The Rise of Equities
Equities have taken the spotlight in Namibia’s financial scene, with the CNDCLI index emerging as the top performer. This index, which consists of dual-listed companies from the Johannesburg Stock Exchange (JSE) on the Namibia Securities Exchange (NSX) Main Board, has shown how robust local investment strategies can be. Hiren Naidoo, a Junior Analyst at Cirrus Fund Managers, explains that the index effectively manages concentration risk by capping each constituent’s weighting at 10%.
Even though there isn’t a dedicated exchange-traded fund (ETF) that tracks the CNDCLI, savvy investors can still gain exposure by investing in companies like Anglo-American PLC, Shoprite Holdings Ltd., and Nedbank Group Ltd.
A Global Perspective
In a broader context, the MSCI World Index also shines, securing second place with a commendable 19.1% return—translating to N,905 on a N,000 investment. This global index tracks approximately 1,500 large and mid-cap companies from 23 developed countries, and its success this year was largely fueled by heavyweight technology stocks like Nvidia, Apple, and Microsoft, which consistently outperformed earnings expectations.
Namibians interested in diversifying their portfolios can consider options like the FNB iShares Exchange Traded Note and the Satrix MSCI World Feeder Fund for direct investment in the global market.
Other Noteworthy Performers
The NSX Local Index, after a remarkable year in 2023 with a 42.3% return, moderated to a still-respectable 10% return in 2024. Key contributors to this performance included Letshego Holdings Ltd., which delivered a 27.9% return, and Capricorn Group Limited, achieving 21.4%.
On the commodities front, the NSX Commodity Index posted an impressive 18% return driven by geopolitical dynamics and robust demand, particularly evident in the rising prices of gold and silver.
Navigating Fixed Income Investments
Fixed income investments also had their fair share of success. Notably, South African Bonds returned an impressive 17.3%, buoyed by a newly formed Government of National Unity that instilled confidence among investors. In comparison, Namibian bonds returned 13.9% and inflation-linked bonds, 9.2%.
Cash Investments: A Cautious Approach
Cash investments, while generally low-risk, offered modest gains, yielding an 8.5% return on fixed deposits and treasury bills. However, it’s important to note that inflation is ever-present, with Namibia’s annual inflation rate reaching 3.4% in December 2024. As Naidoo aptly pointed out, had your money sat idle under the proverbial mattress, it would only have equivalent purchasing power of approximately N,671.18 in that same timeframe.
In summary, 2024 has showcased the resilience and dynamic nature of Namibia’s investment landscape, giving potential investors plenty to consider. Whether you’re leaning towards equities, commodities, or fixed-income options, the Namibian market continues to unfold exciting opportunities.
Tags
#BusinessNews #Tourism #Politics #WorldNews #Namibia
