Fri 13 May 2022:
Namibia established a sovereign wealth fund months after oil majors TotalEnergies and Shell discovered oil off its coast.
President Hage Geingob said the Welwitschia Fund would get an initial injection of 262 million Namibian dollars ($16.3 million) and invest 2.5 percent of its portfolio locally to bridge the country’s infrastructure finance need at the opening in Windhoek on Thursday.
The fund will get a portion of the royalties from the sale of all mineral resources, as well as some tax revenue and money obtained by the government selling its investment assets.
“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 with sovereign funds include Angola, Botswana, Libya and Nigeria.
TotalEnergies said in February that its Venus prospect off the coast of Namibia had discovered a high-quality reservoir with a capacity of more than one billion barrels of oil equivalent, according to Reuters.
It was the second huge find in a month, following Shell’s announcement of a significant find.
Namibia has been considering establishing a sovereign fund since 2009. It is known for its gem-quality diamonds, gold, and uranium.
By 2026, the southern African country wants to be a leader in green hydrogen, and it has chosen a preferred bidder for a multibillion-dollar project.
SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES
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