Chamwe Kaira
The Deposit Guarantee Fund by the Namibia Deposit Guarantee Authority (NDGA) delivered an annual return of 8.1% in 2025, outperforming its benchmark.
The fund beat Alexander Forbes’ short-term fixed interest three-month index, which returned 7.3%, resulting in an excess return of 83.5 basis points. It outperformed the benchmark in all four quarters.
The performance was driven by portfolio management and investments in money market and short-term fixed-income instruments. The fund invested in floating rate notes and Treasury bills.
Floating rate notes benefitted from favourable spreads over the Johannesburg Interbank average rate, while treasury bills provided stability.
Cash held in the South African Reserve Bank call account earned an average return of 7.2% and added to overall performance.
By the end of the year, exposure to floating rate notes increased to 47.9%, up from 36.9% in 2024.
Treasury bill holdings remained at about 38%, supporting liquidity and capital preservation.
The fund’s duration stood at 98.6 days, compared to the benchmark’s 47.5 days. This helped improve returns.
Since inception, the fund has delivered an annual return of 6.9%, above the benchmark’s 6.3%.
The portfolio remained within its investment guidelines and stayed diversified across asset classes and counterparties.
The fund also received N$6.4 million in premium contributions during the year.
Its market value rose to N$40.1 million by the end of 2025, up from N$30.3 million in December 2024. The increase was driven by investment returns and steady inflows.
The fund continues to support financial sector stability and protect depositors. During the year, the Namibia Deposit Guarantee Authority raised the deposit coverage limit from N$25,000 to N$50,000.
