Martin Endjala
President Nangolo Mbumba, yesterday said since the establishment of the Welwitschia Sovereign Wealth Fund, its investment returns have grown from the initial seed capital of N$262 million to N$425 million.
The Fund was created in preparation for a bountiful harvest to come. Mbumba said this during the State of the Nation Address in the National Assembly. The Fund was launched in May 2022, by the late President Hage Geingob.
Mbumba said Namibia’s economic trajectory is promising, with a projected medium-term growth forecast of between 3 and 4 percent.
“President Geingob envisioned a Namibia free from hunger and poverty, a Namibia where no one feels left out. We, therefore, appreciate the fact that 50 percent of the 2024/25 budget has been allocated to the social sectors of Health and Social Services; Basic and Higher Education; Poverty Eradication, Gender Equality and Social Welfare initiatives. This is the Namibian Government’s enduring investment into our most valuable resource – our People,” said Mbumba.
The Welwitschia Fund was established with two objectives, namely saving for future generations, as well as fiscal and official reserve stabilisation.
The fund is envisaged to be a repository of the investment of a portion of defined proceeds from the present utilisation of natural resources and returns from divestiture in state assets.
On the second objective, the fund aims to insulate and stabilise the economy, the national budget and the country’s stock of international reserves against excess volatility in commodity prices and shocks on the fiscal accounts as well as the balance of payments.During the launching of the fund, late President Hage Geingob said a sovereign wealth fund could be a potent tool in achieving economic growth, and act as an important fallback and stabiliser during times of extreme shocks.
