The Government Institutions Pension Fund (GIPF) has reaffirmed its financial strength, reporting an 11% growth in its asset value, which now stands at a robust N$167 billion.
The announcement was made during the launch of its 2024 Integrated Annual Report (IAR) in the capital this week.
Speaking at the launch, the entity’s Chief Executive Officer and Principal Officer Martin Inkumbi highlighted the fund’s resilience in navigating economic uncertainties.
“The GIPF has during the period under review successfully navigated uncertainties, and continues to grow and meet its obligations whilst having consideration for the GIPF’s future performance and prospects,” he said.
The report, which covers the financial year from April 2023 to March 2024, provides an in-depth analysis of the fund’s financial performance, sustainability strategies and governance practices.
It highlights key material issues including sustainability, member-centricity, governance, ethics, risk management and organisational capacity-building.
During the period under review, the fund recorded a rise in contributions, reaching N$4.8 billion, reflecting a 3% increase from the previous financial year.
However, benefits paid to pensioners decreased by 9% to N$6.3 billion, a decline of over N$585 million, compared to the corresponding period in 2023.
GIPF board of trustees’ chairperson Penda Ithindi stated that the fund remains in a strong position to fulfil its long-term obligations.
“The Fund’s Asset Value stood at N$167 billion during the period under review, compared to N$151 billion in the previous year, representing an increase of 11%. This is a testament to the fund’s prudent investment strategies and financial sustainability,” he remarked.
Investment returns also surged significantly, increasing by 13.2% to N$18 billion, compared to the previous year’s 7.7% increase of N$6.5 billion.
Ithindi attributed this growth to favourable market conditions and sound investment management.
Under the theme “Deepening the Strategy Towards Member-Centricity”, the government entity ensured a commitment to enhancing member services and aligning its offerings to meet evolving needs.
The institution seeks to improve accessibility through digital platforms, and tailor its services to better serve pensioners and contributors. “The GIPF plays a crucial role in securing the financial future of its members, ensuring that the fund can endure through challenging times and changes beyond its control. By managing pension contributions with a long-term perspective, the GIPF contributes to the overall well-being of Namibia’s economy, providing a foundation of stability and trust,” Inkumbi noted.
GIPF’s investment portfolio continues to expand, with N$117.1 billion managed by investment firms, N$10.1 billion allocated to direct investments, and N$40 billion in the GIPF Treasury Portfolio.
The fund’s active membership count increased by 2.24% to 99 722, up from 97 512 in the previous year. Additionally, the fund maintains 44 participating employers and collaborates with 69 professional service providers to ensure efficient pension administration.
Drawing on the symbolism of the oryx—an animal known for its adaptability and endurance—the fund emphasised its commitment to long – term financial sustainability and resilience. “Just as the oryx navigates the challenges of its environment with grace and foresight, the GIPF safeguards the future of public servants and employees through prudent investment strategies and sustainable pension management,” added Ithindi.
The cost-to-serve ratio, a key measure of operational efficiency, increased slightly to 1.9% from 1.78% in the previous year, reflecting the fund’s ongoing efforts to enhance service delivery.
ashikololo@nepc.com.na