Niël Terblanché
The Government Institutions Pension Fund (GIPF) has reported robust growth for the 2023/24 financial year, with its asset value increasing to N$167 billion, up from N$151 billion the previous year.
The figures were presented on Tuesday during the launch of the fund’s 2024 Integrated Annual Report (IAR) in Windhoek.
The GIPF’s chief executive officer and principal officer, Martin Inkumbi, said the fund had successfully navigated uncertainties and continues to grow and meet its obligations whilst having consideration for the GIPF’s future performance and prospects.
He added that the IAR reflects the fund’s financial and non-financial performance from 1 April 2023 to 31 March 2024 and provides an overview of its operations across all regions in which it operates.
This year’s report was issued under the theme “Deepening the Strategy Towards Member-Centricity”, signalling a refined focus on serving members through personalised services and improved accessibility, particularly via digital platforms.
Inkumbi said the fund is committed to aligning its products and services with the evolving needs of its members.
“The GIPF plays a crucial role in securing the financial future of its members… ensuring long-term sustainability. By managing the pension contributions with a long-term perspective, the GIPF contributes to the overall well-being of Namibia’s economy, providing a foundation of stability and trust,” he said.
According to Inkumbi, the report draws a parallel between the fund and the Oryx, a resilient animal known for surviving Namibia’s harsh conditions.
“This metaphor was used to communicate the fund’s long-term view and the resilience of its strategic planning and operations,” he said.
Penda Ithindi, the chairperson of the GIPF Board of Trustees, presented the fund’s financial results, noting that contributions rose by 3% to N$4.8 billion, while benefit payments fell by 9% to N$6.3 billion.
“The Fund’s asset value stood at N$167 billion during the period under review. Investments under management by investment managers totalled N$117.1 billion, with N$10.1 billion held as direct investments and N$40 billion in the GIPF Treasury Portfolio,” he said.
According to Ithindi, the fund’s investment return also improved markedly, increasing by 13.2% to N$18 billion, a substantial rise from the previous year’s N$6.5 billion. This performance is attributed largely to gains from the investment portfolio.
He said that the GIPF’s active membership rose by 2.24% to reach 99,722 members. The benefit contribution ratio stood at 132%, while the cost-to-serve ratio was recorded at 1.9%, up slightly from 1.78% in the previous year.
The report also identified several priority areas for the Fund’s strategic direction, including sustainability, member-centricity, outcome-based governance, ethics, compliance, and institutional capacity.
According to Ithindi, the report was prepared in accordance with the International Integrated Reporting Framework.
He said the document meets regulatory standards such as the International Financial Reporting Standards (IFRS), NamCode, and the King IV Report on Corporate Governance.
“The Board of Trustees and Executive Management are pleased with the results presented and assure its members and all stakeholders of the commitment by the Board and its Executive Management in guarding and growing the Fund for the benefit of all,” he said.
