The Government Institutions Pension Fund’s indirect N$31 million investment in funeral services provider NAMBOB recorded an 8% net profit in the 2024/25 financial year, nearly six years after the investment was made through the EOS Capital-managed Allegrow Fund.
GIPF invested in NAMBOB in August 2019 via Allegrow Fund (Pty) Ltd, one of its unlisted investment vehicles managed by EOS Capital.
The investment followed a period of operational and governance challenges at the company, which were subsequently addressed through a restructuring programme and branch rationalisation.
EOS Capital Managing Director Elzine Mushambi said the improvement followed deliberate changes to governance and operating structures, resulting in greater stability despite a difficult trading environment.
“The progressive growth we are seeing reflects a structural turnaround strategy focused on governance, operational discipline and accountability. Despite significant challenges in the operating environment, NAMBOB recorded an 8% net profit in the 2024/25 financial year,” Mushambi said.
“This performance demonstrates resilience following years of corrective interventions and shareholder support.”
Under the turnaround strategy led by Allegrow Fund, NAMBOB closed eight underperforming branches, streamlined operations and transitioned to a locally driven management structure.
The business has since returned to profitability and is targeting an internal rate of return of 31%.
The turnaround has repositioned NAMBOB within the Allegrow Fund portfolio, strengthening its contribution to long-term value creation while maintaining a national footprint of 13 branches.
GIPF Chief Executive Officer Martin Inkumbi said the investment aligns financial objectives with broader socio-economic considerations, even though direct cash returns have not yet been realised.
“What this means is that while the indirect investment by GIPF in NAMBOB has not yet provided direct cash benefits, it facilitates a positive impact through improved access to affordable funeral services,” Inkumbi said.
“This is particularly important for people in rural areas and vulnerable groups reached through NAMBOB’s 13-branch national footprint across Namibia.”
NAMBOB, which has operated under the Avbob brand since the 1960s, provides funeral arrangements, cremations, memorial services and funeral insurance.
Localisation efforts linked to the GIPF investment have shifted procurement towards Namibian suppliers, supporting local employment and skills development.
Inkumbi said the fund views the investment as part of its broader mandate to balance sustainability and development objectives.
“This investment fits with our goal of achieving sustainable returns while supporting the socio-economic development of our nation,” he said.
“As the company stabilises, attention will shift to infrastructure improvements, fleet strengthening and operational capacity expansion. We remain focused on long-term outcomes for both the fund and the country.”
