If you’ve ever thought about dipping your toes into the Namibian stock market but felt overwhelmed by jargon and numbers, you’re not alone. Buying shares in Namibia might sound like something only bankers do, yet it’s simply about owning a piece of a company – and it’s more accessible than you think. This friendly guide breaks down what shares are, why owning them can be rewarding in Namibia, and how to get started without feeling like you’re back in a math class. We’ll also highlight some local context, explain the benefits and risks, and answer your common questions about investing.

Why this matters in Namibia

Investing in shares isn’t just for Wall Street. Namibia has its own stock exchange – the Namibian Stock Exchange (NSX) – which lists a few domestic companies. Being a shareholder means you can participate in the growth of these companies and benefit when they succeed. An added local perk is that capital gains on shares are not taxed for individuals in Namibia, except for companies involved in mining or petroleum. In other words, if you sell your shares for a profit, the government doesn’t take a cut, a rare advantage compared to other countries.

Investing in Namibian companies can also feel more meaningful because you’re supporting home‑grown businesses – whether it’s Namibia Breweries, FirstRand Namibia, or Capricorn Group. Many of these firms employ thousands and drive our economy. When they flourish, you share in the upside through rising share prices and dividends.

If you then buy a share in a company it then means that you are a part owner of the company, a shareholder of the company to be specific. It also means that you are entitled to the company’s assets and profits. These profits will normally be shared to you as a shareholder through dividends that are declared and paid by the company. This then brings us to the concept of Shares, Earnings per share (EPS) and dividends per share (DPS)?

Understanding the basics

What are shares?

A share represents a small slice of ownership in a company. Shares can be unlisted (privately held) or listed (publicly traded on an exchange). When a company lists its shares on a stock exchange such as the NSX, anyone can buy and sell them. By buying shares you become a shareholder, entitled to a portion of the company’s assets and profits. These profits are often distributed through dividends – payments made to shareholders as a reward for owning the stock.

What are earnings per share (EPS) and dividend per share (DPS)?

Earnings per share (often referred to as EPS) is the amount of profit the company made per share. For example, if Elidge made a total profit of N$ 100 000 for the year and has 100 000 issued shares, the EPS is N$ 1.00 per share. If you as an investor then owns 10 shares, you in theory “own” N$ 10.00 of the profits made that year.

Nonetheless when a company makes a profit, it can either re-invest the profit into its business to increase future profits or it can pay out the profits to shareholders in the form of dividends. Normally companies do a combination of both, that is reinvesting and declaring dividends, by paying out a certain percentage of the profits to shareholders and retaining the balance.

Dividends per share (DPS) are usually declared by a company twice a year by listed companies and this is referred to as interim dividends and final dividends

In Namibia, there are 40 companies listed in the NXS and below are a few noticeable companies:

1. Mediclinic International
2. B2Gold Corporation
3. Capricorn Group Limited
4. FirstRand Namibia Limited
5. Letshego Holdings (Namibia) Limited
6. Mobile Telecommunications Limited
7. Namibia Breweries Limited
8. Oryx Properties Limited
9. Shoprite Holding Ltd
10. Trustco Group Holdings Limited

The amount of dividends paid by a company usually depends on various factors such as the company’s performance, cash requirements and divided policy. As such as a shareholder, you must familiarize yourself with the mentioned factors where possible.

Shareholders receive DPS for every share they own. Using the example earlier in this post, if Elidge declares an interim DPS of N$ 0.30 and a final DPS of N$ 0.30, you as the investor that owns 10 shares will receive a total dividend for the year of N$ 6.00.

Why invest in shares?

As a potential investor with the aim of owning shares in Namibia, you should view this type of investment as a long term investment with an investment horizon of at least a minimum of 6 years or more, this is because a longer investment period can sometimes mitigate possible financial risks. Just like any other investment the purchasing of shares does not guarantee positive returns on investment. However below are some reasons you should invest.

What are the benefits

• Capital growth: Share prices fluctuate based on company performance and market sentiment. When the company grows profits, the share price often rises, giving you a capital gain. Since Namibia doesn’t levy capital gains tax on share sales for individualsincorporations.io, you keep more of any profit you make.
• Dividend income: Many established companies distribute a portion of their earnings as dividends. As a shareholder, you receive DPS for each share you hold; this becomes a passive income stream.
• Inflation hedge: Historically, equities tend to outpace inflation over long periods. While past performance doesn’t guarantee future results, owning shares can preserve (and potentially grow) your purchasing power.
• Liquidity: Shares are relatively liquid assets. You can sell your holdings on the NSX through a broker and convert them to cash if you need to.

What are the risks?

• Market volatility: Share prices can rise or fall dramatically in response to economic news, company performance or global events (think of the COVID‑19 pandemic). In the short term, this can lead to capital loss if you sell when prices are low.
• Company performance: If the company underperforms — for example, due to poor management or industry decline — dividends might be cut and the share price could drop.
• Concentration risk: Holding shares in only one or two companies exposes you to company‑specific risks. Diversifying across sectors and even countries can help reduce this.
• Long‑term commitment: Share investing usually works best over a time horizon of at least five to six years. Short‑term speculation can be unpredictable.

Practical steps to start investing

1. Educate yourself: Learn the basics of stock markets, EPS and DPS (you’re doing that now!). Familiarise yourself with the NSX and understand the companies you’re interested in.
2. Set your goal: Determine why you’re investing. Is it for long‑term growth, dividend income or both? Your goals will influence your strategy.
3. Choose a broker: You need a stockbroker or financial services provider registered in Namibia to buy shares. Compare fees and services. Some banks offer brokerage services, and there are specialised brokers who can assist with NSX transactions.
4. Open a trading account: Provide your identification documents (ID, proof of address) and complete the necessary forms to open an account. Ask the broker to explain any costs involved.
5. Fund your account: Deposit the amount you’re comfortable investing. Remember, shares should form part of a broader financial plan; keep your emergency fund intact.
6. Research companies: Read annual reports, news and financial statements. Look for consistent earnings, solid dividends and growth prospects. Don’t feel pressured to buy a company just because it’s popular.
7. Start small: You don’t need thousands of Namibian dollars to begin. Consider buying a handful of shares in a company you know and understand. As your confidence grows, you can diversify into other sectors.
8. Monitor and review: Keep track of your investments periodically. Reinvest dividends (if possible) to benefit from compounding. Adjust your portfolio if your goals or personal circumstances change.

Frequently asked questions

Q: How do I receive dividends?
A: Dividends are paid directly into your brokerage account or bank account linked to your trading account. Companies typically announce interim and final dividends during the year. If you hold shares on the declared date, you’ll receive the payment based on the DPS.

Q: Are shares risky?
A: All investments carry risk. Share prices can rise or fall, and dividends may change. However, with a diversified portfolio and a long‑term view, the risks can be managed.

Q: Do I have to pay tax on dividends or capital gains?
A: Dividends paid by local companies are exempt from income tax in Namibia. Capital gains on share sales by individuals are also not taxed (except for companies involved in mining or petroleum)

Q: Can I buy shares in foreign companies through the NSX?
A: Yes. Several South African and international companies are dual‑listed on the NSX, allowing local investors to gain exposure to foreign firms without opening an offshore account. Examples include Shoprite Holdings, Nedbank Group and Anglo American.

Q: What happens if a company doesn’t pay dividends?
A: Some companies choose to reinvest their profits into growth instead of paying dividends. As a shareholder you don’t receive a dividend, but if the company grows, the share price may rise and you can earn a capital gain when you sell.

Our thoughts

Investing in shares in Namibia can be a rewarding way to grow your wealth, support local businesses and benefit from a tax‑friendly environment. By understanding key concepts like earnings per share and dividend per share, you can make informed decisions rather than relying on hearsay. Remember, investing is a journey — start small, diversify, and keep learning.

If you enjoyed this guide, explore more personal finance tips on PhiskyBox. For a deeper dive into share trading, see our article “Shares and Stocks: Your Complete Guide to Buying and Selling Shares in Namibia”.

If you found this guide helpful, share it with friends or family members who who might be curious about investing and want to explore more personal finance tips on PhiskyBox. Pick your topic and let us explain it to you in simple terms.

This article does not constitute legal and/or financial advice. Kindly consult a registered financial or legal professional for appropriate advice on the subject matter.