THE government pension fund has indicated it is determined to fund agri-business to ensure food security and to help substitute imports with local produce.
Sara Mezui-Engo, manager of alternative investments at the Government Institutions Pension Fund, announced this yesterday at the first large-scale Namibian commercial blueberry harvest, produced by the Mashare Berries project.
Mashare Berries is part of the Spitz Capital Fund anchored in the GIPF’s unlisted investment programme.
“The GIPF is determined to fund agribusiness to achieve food security, import substitution and export gains of earning foreign currency to help bolster national reserves,” she said.
The Namibian has reported in February this year that GIPF has invested N$90 million in a blueberry farming project through its unlisted investments portfolio at the Mashare Irrigation Scheme.
The 2014 amendment changed regulations 28 (now regulation 13) by prescribing 10 asset classes for possible investment with 1,75% to 3,5% to be invested in unlisted assets in the country.
The former minister of finance suggested the 3,5% will be increased to 5%, but to date no adjustment has been announced.
By the end of March last year unlisted investments by the country’s pension funds totalled around N$1,3 billion, which is 0,86% of total investments.
Mezui-Engo said food insecurity and a high consumable import bill motivated the fund to invest in agribusinesses, such as Mashare, to deliver returns for members.
She said the Mashare investment also aims to create employment and empower rural communities.
Mashare produces cash crops such as maize, wheat and potatoes.
The project aims to harvest an estimated 150 tonnes of blueberries between July and October this year.
Mezui-Engo said blueberries support the investment strategy of selecting high-value crops for export to earn foreign currency.
The fund stated the bulk of the harvest will be sold to the external market, with 5% reserved for local consumption.
The GIPF indicated that to date, 500 kg of blueberries have been sold in local retailers.
