Welwitschia Fund nears Parliament
President Netumbo Nandi-Ndaitwah has announced that enabling legislation for the Welwitschia Sovereign Wealth Fund, designed to benefit future generations of Namibians, is at an advanced stage and will be tabled in Parliament in due course.
The President made the remarks during her second State of the Nation Address delivered in Parliament this week. The announcement represents a significant step towards formalising the legal framework for the fund, which has operated under the administration of the Bank of Namibia since its establishment in 2022.
Outperforming its benchmark
According to the central bank, the Welwitschia Sovereign Wealth Fund has grown to approximately N$478.7 million, equivalent to about US$30.09 million, as of 28 February 2026. This growth has been driven by strong investment performance despite continued uncertainty in global markets, including corrections in some key markets following conflict in the Gulf region.
The fund has delivered an annualised return of 16.28% since the start of its current investment strategy in November 2022. This substantially outperforms its benchmark, based on the US core personal consumption expenditure plus three percent, which returned 6.3% over the same period.
The latest figures continue a steady upward trend. The fund was launched in May 2022 with an initial capital injection of N$262 million. It stood at N$451.72 million at the end of 2024 and rose to N$474.67 million by the end of 2025 before reaching its current level.The Bank of Namibia said the fund continues to perform robustly amid global challenges.
A nod to late President Hage Geingob
The Welwitschia Fund was launched under the leadership of the late President Hage Geingob, with key roles played by former Bank of Namibia governor Johannes !Gawaxab and former finance minister Ipumbu Shiimi. Its purpose is to channel a portion of Namibia’s resource revenues, including mineral royalties, selected tax streams and proceeds from government asset disposals, into long-term national savings.
The fund is intended to serve as a financial buffer against economic shocks and to promote intergenerational equity.
At the time of its launch, President Geingob pointed to the country’s emerging energy prospects as a catalyst for future growth. “We are looking forward to the prospects and opportunities that will emanate from the recent discoveries of oil and green hydrogen energy,” he said.
Namibia’s hydrocarbon outlook has since gained momentum. In February 2022, TotalEnergies confirmed a significant light oil discovery at its Venus prospect in the Orange Basin, with estimates suggesting more than one billion barrels of oil equivalent.
Around the same time, Shell announced its own major discovery in the same basin. These finds, along with subsequent developments, are expected to enhance inflows into the fund over time and strengthen its role as a long-term stabiliser for the economy.Sovereign wealth funds are a well-established mechanism used by many resource-rich countries to manage and invest surplus revenues responsibly. In Africa, similar structures operate in countries such as Angola, Botswana, Libya and Nigeria.
phillipus@nmh-hub.com.na
