By: Nghiinomenwa-vali Hangala
As of 31 March this year, retirement savings have delivered 545 MW in renewable energy, 12,113 houses, and contributed to the extension of the fibre network while creating 4,777 jobs.
This is through investment in unlisted (not listed on the stock exchange) projects.
This is according to GIPF, which collects and oversees the investment of public servants’ retirement savings.
The fund has presented how the public servants’ retirement savings are being invested and contributing to economic development at its Investment Symposium this week.
In its presentation, which was delivered by the Board of Trustees chairperson, Penda Ithindi, it has detailed how it has utilised the unlisted markets to deploy capital for impact.
According to Ithindi, the fund has channeled (invested) N$7.1billion of the retirement savings into the energy and infrastructure sectors.
N$2.7 billion of this is allocated and committed to renewable energy investment, resulting in the generation of 545 MW of clean power, which is added to the Namibian grid, which has historically been dependent on imports of coal-induced energy from South Africa.
However, $1.7bn has been disbursed so far; more is still available for renewable projects.
At the same time, the fund has also allocated N$5.0 billion for the development of housing and the real estate sector.
Of this, N$3.5 billion is for the construction of houses across localities, and N$1,481 million was invested in the commercial real estate.
The investment has also resulted in 2,385 serviced plots across the country and 2, 049 homes built.
The fund has also extended N$1.86 billion in housing loans to individuals across all 14 regions.
Beyond housing and energy, the unlisted space mandate has also led to the allocation of N$894m to food, health and education enterprises across the country.
Through the unlisted space, retirement savings have also flowed to SME as the fund reports almost half a million (N$410 million) to small and medium enterprises across sectors.
ICT is one of the expanding sectors, GIPF has invested N$240m on fiber extension across the country.
The fund has also noted that it can invest more if certainty is guaranteed through regulatory conditions.
This means clear and stable rules that hold over the life of the investment.
Moreover, it also means project governance, transparent ownership, credible boards and bankable structures need to be in place.
Moreover, the country should have a pipeline of maturity projects at an investable stage, not concepts, stated Ithindi.
He also highlighted that if risk is shared sensibly between public, concessional and institutional capital, it will unlock more capital to flow to domestic capital.
The symposium was intended to build a lasting understanding of market readiness and of how policy, legislation and development plans can shape an investment environment that serves present and future generations.
As Namibia’s largest institutional investor, GIPF said they have an important leadership role in advancing this conversation.
erastus@thevillager.com.na
