Calls for stronger oversight in Sovereign Wealth Fund

WINDHOEK, 13 March – The Welwitschia Sovereign Wealth Fund, launched in May 2022, is making financial progress but concerns over governance and transparency remain.

The Executive Director of the Institute for Public Policy Research (IPPR), Graham Hopwood has urged greater clarity on how the fund is managed, particularly in the absence of a finalised bill to regulate it. While the Bank of Namibia has reported an increase in the fund’s capital from N$270 million to N$460 million, Hopwood maintains that there is little public information on the rules, regulations, and oversight mechanisms governing the fund.

Graham Hopwood, Executive Director of the Institute for Public Policy Research

“The bill isn’t actually before Parliament—only a draft was produced in 2021, and we haven’t really heard much about it since then,” Hopwood said. He noted that the fund’s governance framework must be clarified through legislation to ensure proper control and prevent potential misuse.

Drawing comparisons to Norway’s Sovereign Wealth Fund, widely regarded as the gold standard in ethical and financial governance, Hopwood highlighted the importance of strict withdrawal policies, Parliamentary oversight, and independent audits. He also pointed to global examples, such as Malaysia’s 1MDB scandal, where mismanagement led to the loss of $4.5 billion.

While there is no indication of mismanagement in Namibia’s fund, Hopwood said there is a need for public confidence in its operations, advocating for media, civil society, and the Auditor General to play a role in ensuring transparency.

As Namibia’s economy prepares for potential oil and gas revenues, experts warn that robust regulatory safeguards are essential to protect the fund from political interference and ensure its sustainability for future generations.