Namibia is proposing legal amendments to compel insurers and pension-fund managers to invest at least 35 percent of their assets in the domestic economy.
Insurers and pension funds must also invest at least 1.75 percent of their assets in local, unlisted investments, according to the draft amendment, which has been approved by the cabinet. Institutional investors will have 12 months to comply with the new rules after they are published.
The government is proposing the rule change in a bid to curb capital flight and boost domestic growth, after Namibia’s central bank said earlier this month that investments in South Africa come largely through savings and institutional investors. Namibian portfolio investments in South Africa totaled 4.5 billion Namibian dollars ($457 million) last year.