GIPF has hit back at media reports claiming that it has purchased shares in MTC and that it will provide partial funding for certain individuals and institutions to also acquire a stake in the lucrative mobile telecommunications company.
“GIPF does not operate as a banking institution which provides financing, however as a pension fund we are allowed by law to make investments which yield returns. Likewise, it is also important to note that we are not aiding government, as the media has been depicting; however we are in talks with the relevant stakeholders that could see GIPF acquiring a substantial shareholding in MTC. This process will follow due diligence to determine if we want to buy the shares which will be based on merit,” explained GIPF Manager for Stakeholder Engagement, Daylight Ekandjo.
In a statement released yesterday, Ekandjo noted that GIPF is required under Pension Fund Regulations to invest locally, and a potential investment in MTC could help the fund in fulfilling that objective. “We are also of the opinion that should the due diligence find the MTC shares feasible it would be a good investment which will be done in our own name and not on behalf of any other entity,” she said. Ekandjo added that GIPF will always strive to look for opportunities to invest in high quality Namibian assets, at a good price offering with market-related returns on behalf of its members and beneficiaries. “Our current total assets have shown constant growth which is a clear indication that our investment strategy is on the right track and our beneficiaries stand to benefit greatly,” she emphasized.
Ekandjo continued that, as a pension fund, GIPF has an obligation to ensure that there are sufficient funds to cover member benefits as they become due. As such, the fund continuously strives to invest in various instruments which have income generating properties as well as good prospects for growth.
As one of the largest local investors, GIPF stays committed to investing in Namibian assets that meet both the fund’s regulatory and financial criteria. This is in line with proposed changes which require pension funds to invest a minimum of 45 percent of their assets in Namibia as announced by the Ministry of Finance.
New Era Reporter
2018-03-29 12:07:56 | 2 years ago