Chamwe Kaira
The Sovereign Wealth Fund was launched with an initial balance of around N$270 million in May 2022, has on the back of positive investment returns, increased its value to N$374 million.
Bank of Namibia’s director of strategic communications and international relations, Kazembire Zemburuka told Observer Money that 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 that was signed to oversee the Fund between the Ministry of Finance and Public Enterprises and the Bank, remains applicable. An amount of N$212 million was apportioned at the end of FY2021/22 via dividends declared from the Bank of Namibia to the state to form part of the Fund’s seed capital,” he said.
President Dr Hage Geingob launched the Welwitschia Fund, the Sovereign Wealth Fund for Namibia. According to the Bank of Namibia, the Fund is set to become one of Africa’s newest sovereign wealth funds centred on enhancing national resilience by insulating the socio-economic structure against cyclical shocks while promoting intergenerational prosperity for all Namibians through the distribution of benefits flowing from the present utilisation of the country’s natural resource endowments.
Welwitschia Fund will take the roll of strategic equity partner in all green hydrogen projects in Namibia, targeting a 24% equity shareholding in Hyphen’s project, with no requirements for additional local equity shareholder participation.
This is part of the government’s assuming the role of the custodian of the wealth to be generated for Namibia with the development of Namibia’s green hydrogen industry.
