Welwitschia Fund Bill nears Parliament

Legislation governing Namibia’s Welwitschia Sovereign Wealth Fund could be finalised by the end of the year, paving the way for a permanent legal framework for managing future resource revenues.

Helvi Filipus, a member of the Bank of Namibia’s monetary policy committee and economic adviser to the governor, said the Bill had gone through several stages of consultation and legislative drafting, with the process now nearing completion.

“The Bill has gone through the process of approval, which are various steps that need to be undertaken at government level,” Filipus said.

“At the moment, I think the lengthiest part of the legislative drafting process is to make the Bill through the legislative drafters.”

Legal drafting complete

According to Filipus, the drafting process had been completed and that the ministry of finance was reviewing the certified draft.

“I understand that the process has been completed. I think there is a certified legislative-drafted Bill. I think the finance ministry has just satisfied itself with that version that came through the drafters,” she added.

Once the ministry is satisfied with the revised Bill, it will be submitted to the Attorney General for certification before being tabled in the National Assembly, Filipus said.

“Once that is done and the ministry of finance is happy with the revised version, it will then go to the Attorney General for certification, and thereafter, it will be submitted to Parliament for tabling, which we understand the finance ministry still has the intention to do during the course of [this year],” she said.

The legislation is intended to provide the Welwitschia Fund with a dedicated statutory framework covering its governance, administration, investment and the management of deposits and withdrawals.

Welwitschia origins

The fund was launched in May 2022 with an initial capital injection of about N$262 million. It is currently administered by the Bank of Namibia under an interim arrangement, in the absence of dedicated enabling legislation.

The fund had grown to N$478.72 million by the end of February 2026, according to the central bank. It has generated an annualised return of 16.28% since the current investment strategy was introduced in November 2022, compared with a 6.3% return on its benchmark over the same period.

The Welwitschia Fund is intended to save and invest part of Namibia’s resource wealth for future generations, while also providing a buffer against economic shocks.

Its role is expected to become increasingly important if Namibia begins generating significant revenues from its emerging oil and gas industry. The fund is also intended to receive income from other sources of natural-resource wealth and selected government revenues.

What does the IMF say

The International Monetary Fund has said finalising the rules governing the fund will be important for ensuring that potential oil revenues are managed transparently and sustainably.

The fund has two broad purposes: stabilising the economy against external and fiscal shocks and building long-term savings for future generations.

Its establishment followed Namibia’s growing focus on managing revenues from its mineral resources and, more recently, expectations of potentially significant oil and gas revenues from discoveries in the Orange Basin.