GIPF invests over N$9b in Namibian economy

The Government Institutions Pension Fund (GIPF) has invested over N$9,6 billion in unlisted investments in Namibia from 2018 to 2023.

In 2022, the GIPF’s investments in Namibia stood at N$9,2 billion.

GIPF chief executive Martin Inkumbi revealed this during the fund’s 2023 integrated annual report launch at Oshakati yesterday.

He said the GIPF has invested capital in all the regions countrywide, with capital investment taking up the largest chunk of over N$2,7 billion invested in renewable energy, followed by mortgage financing commitment taking up over N$1,8 billion during the year under review.

“The GIPF remains committed to ploughing back into the community and investing in the Namibian economy.

“We have contributed to the construction of the mass housing project, and also to a number of housing developments at Oshakati and in other areas as well.

“We also remain committed to sustainable growth and transparency in our financial reports,” he said.

Inkumbi said the fund’s funding level has improved gradually, with funding level targets standing at between 105% and 115%, while its current state stands at 115,5%.

He said the fund has incurred a number of challenges, such as a widening gap between contributions and benefit payments, the cost to serve still increasing, and improving departmental engagements to manage costs.

The highlights include the improved funding level and reserves, that the fund remained within its allowable budget limits, and that it obtained a clean audit opinion over the period.

The GIPF’S member contributions received stand at N$4,7 billion during the year under review, with about 97 512 active members – down from 98 623 last year – and about 40 197 active monthly pensioners.

A total of N$6,9 billion was paid out in benefits to members in 2023, while in 2022 a total of N$5,5 billion was paid out in benefits to members – up with 25%.

“Once the funds have been invested, they are allowed the opportunity to grow with the market and generate returns. Any residual funds are reinvested into the fund, ready for another round of growth,” said Inkumbi.

Evans Maswahu, the vice chairperson of the GIPF board of trustees, said: “The GIPF has consistently upheld the core principles of good governance, accountability and transparency for over 33 years.”

He said the report provides a concise, material and candid evaluation of the fund’s performance for the year ended 31 March 2023.

The fund undertook an assessment of the risks, opportunities and outcomes that materially impacted value creation to expand the focus beyond the financial reporting boundaries, he said.

Maswahu said the report discloses information pertaining to matters that could potentially impact the fund’s long-term value creation significantly.