GIPF’s Inkumbi reflects on first 100 days
Managing Namibia’s largest pension fund
Market Watch recently sat down with newly appointed GIPF CEO Martin Inkumbi, who has taken the helm at Namibia's biggest pension fund.
Having risen through the ranks, former banker turned asset manager Martin Inkumbi recently took the reigns as the CEO of the Government Institutions Pension Fund (GIPF), Namibia’s largest pension fund.
In this two-part series, Inkumbi shares his hopes to see more local companies list to create a new avenue for the fund to invest in, and that the nascent green hydrogen industry, currently under development, creates an array of opportunities for the fund. He further touched on how unpopular legislative instruments could impact the fund.
Inkumbi said he throws his support behind current asset allocation requirement that specify that 45% of pension fund assets be invested in locally-listed assets.
“From my perspective, these parameters or limits are fair at this stage. Fair in the sense that they still allow a pension fund to have just north of 50% outside [Namibia], and the other in the local economy."
He added that it would not be ideal to push the limit beyond current asset allocation requirements currently imposed.
“I would like to believe that the [political] authorities would also have regard to the investment opportunities in the country. I do not think it will make sense to put the limit up to 80% if you know there are no viable investments locally,” Inkumbi said.
GIPF excited about oil and gas, green hydrogen
Developments in the green hydrogen space, and the recent discovery of oil deposits in the Orange Basin in southern Namibia, present a new opportunity, Inkumbi said.
“At the moment, I think the balance is fair. I do hope with the new economic developments in the green hydrogen space, in oil and gas, that we could see more investable options coming up, [and that] companies that are established hopefully also list on the Namibia Stock Exchange [NSX]. That would create new avenues for institutional investors and pension funds to invest further in the local economy,” he said.
“It will be ideal if more local companies could list on the NSX. It will create investable assets for asset managers and pension funds, and also for individuals. It will help with the raising of capital for Namibia instead of just relying on debt, going to the banks and so on.”
Political interference
Turning the attention towards legislative instruments that may impact the pension fund industry, Inkumbi is confident the GIPF can withstand any politically unpopular policy positions.
“When legislation is passed, it has been passed, and it is not only going to impact the GIPF. It will impact the whole industry, and [if that has] adverse consequences, it will be unfortunate. But the only mitigation is, really, [that] there will be consultations on legislation. And hopefully, it is through that process that we could, as an industry, inform and guide the authorities on maybe the best action to take. But I do accept that legislation is done by the authorities and if the legislation is there, we have to comply,” Inkumbi said.
According to him, wide consultation is crucial to help the fund stem the tide of any policies that may impede its growth.
“Yes, we could try and influence the direction of legislation. [On] the other [hand] is, simply: How do you manage that which could then be an internal risk factor that any organisation would have to manage?"
Inkumbi asserted that he remains accountable to his appointing authority, the trustees of the GIPF.
“I do not see, nor do I have any concern of, political interference as CEO or principal officer. I deal with the trustees, I am accountable to the board of trustees," he said.
In this two-part series, Inkumbi shares his hopes to see more local companies list to create a new avenue for the fund to invest in, and that the nascent green hydrogen industry, currently under development, creates an array of opportunities for the fund. He further touched on how unpopular legislative instruments could impact the fund.
Inkumbi said he throws his support behind current asset allocation requirement that specify that 45% of pension fund assets be invested in locally-listed assets.
“From my perspective, these parameters or limits are fair at this stage. Fair in the sense that they still allow a pension fund to have just north of 50% outside [Namibia], and the other in the local economy."
He added that it would not be ideal to push the limit beyond current asset allocation requirements currently imposed.
“I would like to believe that the [political] authorities would also have regard to the investment opportunities in the country. I do not think it will make sense to put the limit up to 80% if you know there are no viable investments locally,” Inkumbi said.
GIPF excited about oil and gas, green hydrogen
Developments in the green hydrogen space, and the recent discovery of oil deposits in the Orange Basin in southern Namibia, present a new opportunity, Inkumbi said.
“At the moment, I think the balance is fair. I do hope with the new economic developments in the green hydrogen space, in oil and gas, that we could see more investable options coming up, [and that] companies that are established hopefully also list on the Namibia Stock Exchange [NSX]. That would create new avenues for institutional investors and pension funds to invest further in the local economy,” he said.
“It will be ideal if more local companies could list on the NSX. It will create investable assets for asset managers and pension funds, and also for individuals. It will help with the raising of capital for Namibia instead of just relying on debt, going to the banks and so on.”
Political interference
Turning the attention towards legislative instruments that may impact the pension fund industry, Inkumbi is confident the GIPF can withstand any politically unpopular policy positions.
“When legislation is passed, it has been passed, and it is not only going to impact the GIPF. It will impact the whole industry, and [if that has] adverse consequences, it will be unfortunate. But the only mitigation is, really, [that] there will be consultations on legislation. And hopefully, it is through that process that we could, as an industry, inform and guide the authorities on maybe the best action to take. But I do accept that legislation is done by the authorities and if the legislation is there, we have to comply,” Inkumbi said.
According to him, wide consultation is crucial to help the fund stem the tide of any policies that may impede its growth.
“Yes, we could try and influence the direction of legislation. [On] the other [hand] is, simply: How do you manage that which could then be an internal risk factor that any organisation would have to manage?"
Inkumbi asserted that he remains accountable to his appointing authority, the trustees of the GIPF.
“I do not see, nor do I have any concern of, political interference as CEO or principal officer. I deal with the trustees, I am accountable to the board of trustees," he said.
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