Investment approach needs new mindset

Investment approach needs new mindset The chief executive officer of the Government Institutions Pension Fund (GIPF), David Nuyoma, has urged businesses and investors to embrace the hard lessons learned from the Covid-19 pandemic and incorporate it into policies going forward.

Opening the fourth Eljota Namibia Investment Summit on Tuesday, Nuyoma said despite its devastating loss and negative impacts, the pandemic created an opportunity to create thriving businesses and vibrant local sectors, deep financial markets as well as wide participation in the growth of the local economy.

“This new post Covid-19 environment requires a fundamental change in how we approach business and investments. A new environment requires a new mindset,” Nuyoma said.

It would be prudent to revisit the country’s investor roadmap that is pinpointing administrative, procedural and regulatory obstacles deterring investments in Namibia, he added.

“In light of the current extenuating circumstances, it would be prudent of us to revisit these impediments and alleviate them with a sense of urgency and priority in order to unlock the vast opportunities that may be lying dormant due to an unconducive administrative or regulatory environment.”

OPPORTUNITIES

Further highlighting the opportunities presented by the pandemic to Namibia, Nuyoma said the GIPF has grown its asset base over the past 11 months since the height of the pandemic from N$108 billion to N$132 billion as of March 2021.

He said the fund achieved this by seeing the current environmental challenge as an opportunity in disguise and by making a number of tactical investment decisions without ever needing to alter its strategic asset allocation.

“One of the benefits of a crisis is that it helps highlight what is important and critical in any given context,” he said.

The GIPF invested in three companies to manufacture 100%-locally produced paracetamol, immune boosters, hydroxychloroquine, sanitiser, ethanol as well as all personal protective equipment.

Agribusiness and food security also present clear opportunities as the country has an annual consumption of 16 000 tons of maize, 160 tons of wheat and 30 000 tons of potatoes, Nuyoma said. - Nampa