Namibia’s sovereign wealth fund, the Welwitschia Sovereign Wealth Fund, has grown by 62% from its initial capital of N$262 million to N$425 million, President Nangolo Mbumba has revealed.
The Fund was established in May 2022 to safeguard the nation’s economy against fluctuations and ensure equitable distribution of benefits from its natural resources for the welfare of all Namibians. The Bank of Namibia oversees the management of the Fund.
“In recognition of the need to prepare for a bountiful harvest to come, we seeded the Welwitschia Sovereign Wealth Fund. We are committed to ensure that the Fund is transparent and accountable to the Namibian people,” Mbumba said.
Mbumba also explained that Namibia’s economic trajectory pointed towards between 3% and 4% growth in the medium term.
This comes as Namibia is anticipating firmer estimates of recoverable reserves in the realm of oil discoveries, and as such the Fund stands ready to capitalise on this opportunity.
“We expect firmer estimates of recoverable reserves to be announced this financial year. We are prepared for this opportunity through a robust local content regime, a ready sovereign wealth fund, amongst various other measures to maximise the impact and benefit for our country,” Mbumba said.
President Mbumba also said exploration into the feasibility of using locally produced green hydrogen to manufacture goods such as ammonia, fertiliser, hydrogen, iron, and cement in a cleaner and more environmentally friendly manner was underway with initial outputs expected this year.
“The green ammonia market is expected to reach 70% growth by 2030. This year, pilot projects for green hydrogen, green ammonia and green iron production will produce initial outputs for the first time,” he said.
The Welwitschia Fund is structured into short and long-term and has a balanced mandate where 70% of the assets bought are risky assets such as equities while the rest are fixed-income assets, real estate and private equity.
About 2.5% of the intergenerational fund will be invested in infrastructure projects with socio-economic benefits for future generations.
