Over-the-counter market possible
Many South Africans were able to share in the good fortunes of Multichoice South Africa’s fortunes through Phuthuma Nathi Investments, a Black Economic Empowerment vehicle created on the back of an empowerment framework.
Phuthuma Nathi allows South African citizens to take up shareholding in Multichoice South Africa via a Over-the-counter trading platform and is one of many empowerment vehicles created since the introduction of the empowerment framework.
Back home, the Namibia Stock Exchange is looking to create a similar platform as law makers struggle to piece together an empowerment framework, now in its final worded form as the New Equitable Economic Empowerment Framework [NEEEF].
Shedding some light on what laid ahead for the Namibia Stock Exchange Chief Executive Officer Tiaan Bazuin said, “We do not foresee more local companies coming to market until the New Equitable Economic Empowerment Framework requirements are clear and the exchange offers a solution that creates the avenue for companies to find their broad-based Namibian shareholding via the exchange. We are ready to create a NEEEF compliant Board on the NSX if the regulations allow for it.”
He noted that although many companies had expressed interest to list, the dilly dallying around NEEEF discouraged many from listing. Additionally, the Over-the-counter route he said was seen as an opportunity for companies seeking listing to dab their feet in the water.
“We envisioned this as a good market training format for companies before they take the step to list, but most feedback from companies is that they would rather list directly,” he said.