Namibia's unlisted investment market is experiencing rapid growth, with institutional investors increasingly looking beyond the stock exchange for opportunities. The market has grown to N$6.4 billion in committed capital, with N$4.9 billion already deployed into portfolio companies. This growth indicates a significant shift in investment strategies, with private equity funds and special purpose vehicles playing a larger role in providing capital to privately held businesses.
According to the Namibia Financial Institutions Supervisory Authority (Namfisa), the unlisted investment market has seen a 37.1% increase in committed capital over the past year and a 21% increase over six months. The regulator attributes this growth to the increasing role of private equity funds and special purpose vehicles in providing capital to businesses not listed on the Namibia Securities Exchange. This trend suggests that investors are seeking alternative investment opportunities.
The sectors attracting the largest portions of unlisted investment are agriculture, forestry and fishing, electricity and water, and manufacturing. Agriculture, forestry and fishing account for 15.7% of total investments, followed by electricity and water at 14.3%, and manufacturing at 9.8%. Other areas, including information technology and communication, meat processing, and transportation, also received significant investments.
The structure of financing in the unlisted investment market is also changing, with debt financing increasing in prominence. Equity financing accounted for 51.1% of total financing, down from 63.5%, while debt financing increased to 48.9%. This shift indicates that debt is now almost as large a source of funding as equity within the unlisted investment market.
The market remains concentrated among a relatively small number of investment managers, with the top three managers accounting for 53.2% of committed capital. Eos Capital held the largest share at 25.4%, followed by Ino Harith Capital at 20%, and Old Mutual Alternative Investments (Namibia) Ltd at 7.8%. This concentration suggests that a few key players dominate the market.
The companies receiving funding from the unlisted investment market employed 9,917 people during the period, comprising 7,249 permanent and 2,668 temporary workers. This represents a 24.9% increase in employment from the previous period. The growth in employment suggests that the unlisted investment market is having a positive impact on the Namibian economy.
Namfisa's Second Quarterly Report for 2026 highlights the growing preference for channelling new funds through equity-focused special purpose vehicles. The regulator's report also notes that the figures indicate a significant shift in investment strategies, with institutional investors increasingly looking to the unlisted investment market for opportunities.
Key points
- The unlisted investment market in Namibia has grown to N$6.4 billion in committed capital.
- Agriculture, forestry and fishing account for 15.7% of total investments.
- The top three unlisted investment managers account for 53.2% of committed capital.
