Old Mutual grows Namibia’s direct domestic investment portfolio

Through its domestic investment portfolio, Old Mutual Namibia’s alternative investment function has committed itself to address critical development challenges faced throughout the country.

Domestic investment can ensure that Namibian savings are effectively utilised to stimulate development by making a meaningful contribution to the economy, and the developmental needs of communities through funds managed by the alternative investment function. Through the funds it manages, Old Mutual has been able to make considerable differences within the spheres of housing, renewable energy, education and health.

The company has been a trusted partner in funding various housing development projects, and, since the inception of the project, was able to source more than N$550 million for a new infrastructure fund.

This enabled the company to invest more than N$200 million in land servicing projects in Windhoek, Swakopmund, Otavi and Walvis Bay. A further N$300 million for combined land servicing and affordable housing was invested in: Otjiwarongo with 300 erven developed and 292 houses to be delivered; Rundu with 116 erven and currently more than 32 housing units delivered; and Mariental with 56 erven and 206 houses to be delivered.

Previous land delivery initiatives were successfully delivered in Walvis Bay and Windhoek. Commercial properties of over N$650 million were deployed in various towns including Windhoek, Rehoboth, Keetmanshoop, Arandis, Grootfontein, Ondangwa and Oshikango.

“Our investments in a myriad of bankable projects, particularly in the housing and infrastructural development space, seek to balance commercial returns with a positive social impact. Our track record is testament to the fact that attractive returns and a positive impact are not mutually exclusive,” Lionel Kannemeyer, the managing director for the Old Mutual Investment Group, said.

He also commented on the success of alternative investments within the renewable energy sector.

“We are cognisant of the need for additional power generation to service the needs of both communities and industry, and currently have six renewable assets, with a combined power-generation capacity in excess of 25 MW, invested - which feed into the national power grid. These are located from Rosh Pinah in the far south, Keetmanshoop, Rehoboth and Grootfontein to Otavi and Okatope in the far north of Namibia,” he said.

“Human capital investment is another critical component of any country’s socio-economic growth and future; therefore, we have endeavoured to invest in various schools and institutions of learning to the tune of approximately N$70 million for projects which are located in Windhoek, Walvis Bay, and even as far as Nkurenkuru,” Kannemeyer added.

In terms of healthcare, Old Mutual has funded medical infrastructure to the value of some N$30 million, which was developed and invested in Rehoboth and Ondangwa.

“We have developed investment structures which are flexible enough to fit local circumstances and evolve over time as the local market circumstance develops. Old Mutual therefore values the importance of local domestic investment and continues to raise funds from pension funds to support and fund developments which would not only improve the socio-economic development of the country, but also ensure sustainable Return on Investment goals are met,” Kannemeyer said.