BoN reveals amount in sovereign wealth fund

Namibia’s sovereign wealth fund has grown to N$385 million from its initial capital injection of N$270 million, deposited at its launch in May 2022. This marks growth of N$115 million in the Welwitschia Fund’s value in a little over a year. This despite no further injections being made into the fund, the Bank of Namibia (BoN) - which manages the fund on behalf of government - said. Providing the update, central bank spokesperson Kazembire Zemburuka said the strength of the United States Dollar (USD) contributed to the fund’s growth. “The sovereign wealth fund was launched with an initial balance of around N$270 million in May 2022. There have been no subsequent injections into the fund. On the back of positive investment returns and the USD’s strength, the latest fund value as of 30 June stood at N$385 million,” he said. Fund rulesDeliberations are now underway to set the fund’s rules, Zemburuka said. “The Sovereign Wealth Fund Bill is currently in draft format and deliberations are underway to set funding rules from various revenue sources, along with withdrawal rules. “Meanwhile, the agreement which was signed to oversee the fund between the ministry of finance and public enterprises and the bank remains applicable,” he said. Royalties from the sale of natural, renewable and non-renewable mineral resources, taxes, divestiture from public investment holdings and contributions from certain state-owned enterprises will finance the fund.It will have multiple investment accounts which will include stabilisation and intergenerational savings, while investments in these will vary - focusing on low risk and the medium-term, with a maturity age of between three to 10 years.Bill tabling expected for 2024Finance minister Ipumbu Shiimi previously said the Bill to regulate the fund is expected to be tabled in 2024.“We aim to table the bill before Parliament in the 2024/25 financial year. In terms of capitalisation, the fund remains with the initial seed capital of N$300 million. “Given the need to maintain fiscal sustainability, it is not possible at this point to further capitalise the fund from the current revenue streams without increasing debt,” he said during the tabling of the 2023/2024 national budget.“Accordingly, the draft bill will include the necessary provisions and stop-gap measures to ensure that the fund is capitalised in a fiscally sustainable manner."

BoN reveals amount in sovereign wealth fund

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Namibian Sun 2025-03-14

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BoN reveals amount in sovereign wealth fund

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Namibian Sun 2025-03-14

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