Local entrepreneurs to benefit from GIPF's Unlisted Investments

06 Aug 2013 10:40
WINDHOEK, 06 AUG (NAMPA) - The Government Institutions’ Pension Fund (GIPF) is hard at work to create awareness about the benefits of its Unlisted Investment Policy (UIP) amongst local entrepreneurs.
Speaking during a media briefing here on Tuesday, the GIPF’s Chief Executive Officer David Nuyoma said there is a lack of awareness about its UIP among Namibian entrepreneurs.
“This concern impedes our objective to cast our net widely and ensure broad-based participation from the Namibian business fraternity. In this regard, we will be implementing a strategy to market and brand the Unlisted Investment Policy,” he stated.
A variety of activities, such as Open Days and specific media interviews, will be arranged in order to profile this portfolio.
In its quest to continue to invest in the economy and for the sake of compliance, the GIPF Board of Trustees approved an Investment Policy for Unlisted Investments in 2008.
The overall goal of this policy is to use GIPF funds to contribute to the development of Namibian capital markets with regard to unlisted investments.
The trustees came up with this policy through detailed studies of global best-practices, and they used lessons learned from the failed Development Capital Portfolio (DCP), as well as the potential of unlisted investments providing an alternative asset class.
According to Nuyoma, it is GIPF’s belief that through the Unlisted Investment Policy, the Fund complies with Regulation 29 of the Pension Funds’ Act, which requires the institution to invest funds into the local economy, and reduce the net impact of capital flight out of the domestic economy.
As at the end of June 2013, the Fund has committed N.dollars 2.3 billion towards its Unlisted Investment Portfolio, and over N.dollars 679 million has already been injected into various projects countrywide.
Some significant projects covered include an injection of N.dollars 148 million into the Procurement Fund, a medium through which the GIPF ensures the provision of short-term working capital and asset-backed financing to small and medium enterprises (SMEs) who have contracts to render services to reputable entities.
Another N.dollars 51 million has been invested into renewable energy-linked initiatives through the provision of credit financing to SMEs participating in this area; while over N.dollars 479 million has been invested into immovable properties with long-term income and growth potential.
Nuyoma said some development facilities have either been completed or are at an advanced stage, creating a significant number of employment opportunities for the Namibian population.
These include the Gwashamba Property Development in Ondangwa, the Grove Mall in the capital, Otjiwarongo Town Square, and a number of residential and housing projects countrywide.