17 May 2016 15:20pm
WINDHOEK, 17 MAY (NAMPA) - The Government Institutions' Pension Fund (GIPF) has so far allocated N.dollars 750 million to housing financing for civil servants, says GIPF Board of Trustees Chairperson Mihe Gaomab II.
He was speaking during the GIPF annual stakeholders consultative meeting here on Tuesday.
GIPF has responded to the call of the nation to seek a solution to the housing plight currently haunting our people. In this context, the fund has made a combined allocation of N.dollars 1,350 billion of which N.dollars 750 million has so far been allocated to housing financing while a balance of N.dollars 600 million has been used for developing and construction, land services and other municipal bulk services, he said.
To date, three of GIPFs unlisted funds have mandates allowing for servicing of land, housing development and mortgage financing.
Although the fund considered these investments to be quite significant, the Board is making assessments of possible further expansion of the housing portfolio in line with the Harambee Prosperity Plan (HPP), Gaomab indicated.
As of 31 December 2015, a total of 1 582 plots had been serviced throughout Namibia. As of 15 April 2016, 484 housing units, townhouses and apartments had been developed. As of 15 April 2016, 1 310 individual home loans worth N.dollars 100 million had been funded.
GIPF recently committed N.dollars 2 billion to a second round of fund managers with unlisted mandates. These mandates include venture capital, debt funds, infrastructure funds and general private equity.
Gaomab further stated that the GIPF Development Investment Policy (DIP), which was introduced last year, is expected to contribute to national development and the Harambee Prosperity Plan, particularly to the pillars of economic and social infrastructure, green economy and energy.
We are currently making assessments of suitable approaches to DIP, taking into account experiences from countries that have adopted similar strategies. We are also in contact with the regulator of pension funds to iron out matters of regulatory interest, he added.
As at end of March 2016, GIPFs total asset value stood at N.dollars 93.3 billion which records an annual return of 5.45 per cent against the benchmark of 6.26 per cent.
The HPP outlines Government's planned developmental activities for the next four years.
The plan is built on five pillars, namely effective governance and service delivery; economic advancement; social progression; infrastructure development; and international relations and cooperation.