Justicia Shipena
The Government Institutions Pension Fund (GIPF) says it remains confident in its ability to recover value from its investments despite a tax claim by the South African Revenue Service (SARS) that led to a major impairment.
This is despite the fund saying the claim created “significant uncertainty” for its ability to recover full value of its assets.
The claim against one of GIPF’s offshore investment vehicles, the Signal Structured Finance Fund, resulted in an impairment of N$815 million in its 2025 financial statements.
GIPF chief executive officer Martin Inkumbi said this formed part of a total impairment provision of N$922.2 million across the fund’s investment portfolio for the year ending 31 March 2025.
Inkumbi explained that the impairment reflects prudent financial reporting rather than a loss of confidence in the fund’s long-term outlook.
“The impairment figure, standing at 0.4% of the fund’s total assets, is well below the materiality threshold set by our external auditors and does not erode the fund’s short- or long-term sustainability,” he said.
He added that, although the SARS claim may affect assets held in the Signal Structured Finance Fund, GIPF is confident in recovering value over time.
“However, there are risks to investing and losses could,from time-to-time, be experienced in some investments.The GIPF is making all efforts to minimise impairments and recover funds in line with the fund’s investment policy.”
Earlier reports suggested that GIPF was at risk of losing about N$1 billion due to underperforming investments, including the N$815 million placed with a South African investment firm.
Despite the impairment, GIPF said its portfolio continues to grow, increasing from N$183 billion in March 2025 to N$199.4 billion by September.
The fund reported investment returns of N$18 billion in 2024 and N$16.7 billion in 2025.
Inkumbi said GIPF’s diversified strategy across listed equity, alternative investment, and fixed income portfolios has helped cushion the fund from individual investment shocks.
“We continue to achieve and even exceed our target return of CPI plus 5%, which demonstrates the Fund’s resilience and prudent management,” he said.
He added that GIPF remains financially strong, with a funding level of 119.69%, and continues to meet its obligations to members.
This follows media reports indicating that a 12-page report presented to the GIPF board of trustees on 24 September highlighted more than nine underperforming investments, some of which are losing value or tied up in legal disputes.
“The GIPF is fully funded and continues to pay benefits as usual. We remain committed to safeguarding and growing the retirement savings of our members,” Inkumbi said.
He noted that GIPF’s current assets stand at N$199.4 billion, equivalent to about 87% of Namibia’s gross domestic product (GDP), with nearly half invested domestically. This, he said, makes the fund a major contributor to the national economy.
Inkumbi added that the GIPF board of trustees continues to ensure all investment decisions are aligned with the fund’s long-term sustainability and growth for the benefit of its members.
