32.2 C
Saturday, November 27, 2021

Namibia plans to establish a sovereign wealth fund this year

- Advertisement -spot_imgspot_img

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.

READ ALSO: Nigeria to spend more on fuel subsidy than $4 bln raised from Eurobond issuance

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.

- Advertisement -spot_imgspot_img
Latest news
- Advertisement -spot_img
Related news
- Advertisement -spot_img