Namibia launches sovereign wealth fund

WINDHOEK, May 13 — Namibia on Thursday launched a sovereign wealth fund that will promote intergenerational prosperity for all Namibians by ensuring that the distribution of benefits flowing from exploiting the country’s natural resource endowments is shared across generations.
Speaking at the launch, President Hage Geingob said the country is taking concrete actions to herald a new era for Namibians.
“We would like to put aside a portion of the revenue we collect from the present exploitation of mineral resources for future generations of Namibians to also enjoy the fruits of the resource endowment of their country, “he said.
The fund will be split into two, the Intergenerational and Stabilization accounts which will be financed with proceeds from the renewable energy industry, mining royalties, fishing quotas and the sale of state-owned assets.
“The second objective of the Fund, which will be served by the Stabilisation Account, is fiscal and official reserve stabilization,” he said.
He said Namibia is also establishing the Welwitschia Fund which will serve as an automatic shock absorber and enable the country to maintain stable expenditure patterns over time. (Xinhua)