Namibia to mark colonial genocide for first time with memorial day
Namibia launches sovereign wealth fund following oil discoveries
7:29 CAT | 12 May 2022
Photo: Twitter / @hagegeingob
- Known for its gem-quality diamonds, gold and uranium, Namibia has considered creating a sovereign fund since 2009.
Namibia on Thursday launched a sovereign wealth fund, months after oil discoveries by TotalEnergies and Shell off its coast.
President Hage Geingob said at the launch the Welwitschia Fund would get an initial injection of 262 million Namibian dollars ($16.15 million) and invest 2.5% of its portfolio locally to bridge the country’s infrastructure financing gap.
The fund will collect some of the royalties from all mineral resources sold as well as some tax revenues and money raised by the government divesting from its investment holdings.
“We are looking forward to the prospects and opportunities that will emanate from the recent discoveries of oil and the green hydrogen energy, which have the potential to further boost the fund’s capital,” Geingob said.
Other resource-rich African countries that have sovereign funds include Angola, Botswana, Libya and Nigeria.
TotalEnergies said in February its Venus prospect offshore Namibia had found a good quality reservoir, which one source told Reuters was more than 1 billion barrels of oil equivalent. That find was the second major discovery in a month after Shell also announced a significant find.
Known for its gem-quality diamonds, gold and uranium, Namibia has considered creating a sovereign fund since 2009.
It is aiming to become a green hydrogen player by 2026 and has selected a preferred bidder for a multi-billion dollar project.
The road that led towards the establishment of the Namibian Welwitschia Fund was birthed in th Harambe Prosperity Plan II and is accompanied by a rich history. I am, therefore, pleased that, after years of deliberations, we are seeding The Welwitschia Fund with 300 Million NAD. pic.twitter.com/xpbthmLWuf
— Dr Hage G. Geingob (@hagegeingob) May 12, 2022
Kalu Ndukwe Kalu says, « the things we do for ourselves are gone when we are gone, the things we do for others remain forever as our legacy ». Let The Welwitschia Fund be our legacy across all generations. I now launch our first Sovereign Wealth Fund, The Welwitschia Fund. pic.twitter.com/J7zARouaPI
— Dr Hage G. Geingob (@hagegeingob) May 12, 2022
Source: Reuters
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