Namibia plans to establish a sovereign wealth fund by the end of this year that will be used to serve as a buffer against future economic shocks, Finance Minister Ipumbu Shiimi said.
It will be split into short- and long-term funds and be financed with proceeds from the renewable-energy industry, mining royalties, fishing quotas and the sale of state-owned assets, Shiimi said in an interview with the state broadcaster on Monday.
The long-term, so-called intergenerational fund will have 70% of its investments in equities, fixed-income, real estate and private equity, Shiimi said. The short-term fund will focus on low-risk assets like Treasury bonds and money market instruments, he said.
The government plans to invest about 2.5% of the intergenerational fund in infrastructure projects, the minister said.