GIPF gamble bears fruit

 

Windhoek – Government Institutions Pension Fund (GIPF) has received over R7 million from the Namibia Procurement Trust Fund ‑ the first dividend from its unlisted fund projects. The procurement fund handed over the cheque during a GIPF project financing information session held at a local hotel in the capital on September 23.

GIPF contracted Namibia Procurement Trust Fund in early 2010, as a new procurement finance product that supports the funding needs of entrepreneurs who have successfully secured supply contracts into the value chains of local authorities, parastatals, private sector and central government.

Besides financing, the Namibia Procurement Fund also focuses on the performance of Namibian SMEs through its Enterprise Development Programme (EDP), which was developed in partnership with the German Development Co-operation (GIZ). 

EDP provides training to the public in various fields, for example, on how to tender, bookkeeping, project management, costing and pricing. Ellaine Samson, the Chairperson of GIPF Board of Trustees, said to date GIPF has invested R148 million in the Namibia Procurement Trust Fund, with the aim to play a catalytic role in enabling upcoming entrepreneurs to successfully partake in mainstream business activities.

“We believe that in so doing we facilitate the multiplication of Namibian entrepreneurs who in turn create much-needed jobs for the economy,” Samson said.   Meanwhile, GIPF used the information session to explain the Unlisted Investment Policy (UIP).

According to Samson, the holistic aim of the UIP was to make a meaningful contribution to the national economy through innovative ways while preserving members’ interest at all times. UIP was established in 2008. 

Through this policy, the fund seeks to promote development through empowerment of entrepreneurs without prejudice to interest of members as well as beneficiaries. GIPF, the largest pension fund in Namibia worth over R60 billion, has committed R2.3 billion ‑ of which R679 million has already been injected into projects countrywide.

Tarah Shaanika, CEO of NCCI, noted that: “On our part as a business representative organisation, we will create platforms for empowering entrepreneurs with information about sources of funding and the financing products available in the market.

“We will also continue to encourage the financial institutions to be more creative in developing financing instruments, which can fuel industrialisation, economic growth and employment creation.  David Nuyoma, CEO of GIPF, said, “Our aim is to ensure broad-based participation and facilitate true empowerment process. Through this campaign, we hope to bridge the gap between lack of information and access to financial capital.” 

Nuyoma emphasised the objectives of GIPF as, among others, to provide development finance to the non-listed sector with growth potential.  The pension fund further aims at managing risks through a balanced and diversified investment approach as well as stimulating growth of the Namibian capital market, together with promoting the overall economic development of Namibia, he said.

Other investment trusts that have benefited from the policy so far are Desert Stone Trust Fund (R12.5m); Kongalend Renewable Energy (R51.4m); VPB Growth Trust Fund (R32m); Frontier Property Trust Fund (R222m); Preferred Investment Property Trust Fund (R87m); Koningstein Capital Investment Property Trust Fund (R8.5m ); First Capital Real Estate Finance Trust Fund (R4.9m); Tunga Real Estate Trust Fund (R141m); and Expanded Infrastructure Trust Fund (R11.9m).

September 2013
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