Namibia is gearing up to finalize its sovereign wealth fund by 2025, a move that aligns with the anticipated approval of the nation’s first offshore oil project. This development is seen as a significant step for the country, which has yet to begin oil or gas production but has recently emerged as a prime destination for energy exploration.
According to government officials, a comprehensive law is being crafted to regulate how the fund will be managed, including the rules for withdrawals and investments. The legislation is expected to be presented to parliament by early next year, with full operational status of the fund following soon after.
However, the government does not expect the fund to start receiving income until oil production begins, a milestone that could take another four to six years. Industry insiders suggest that 2025 could also mark the approval of the first offshore oil development projects, further bolstering the fund’s potential growth.
As the nation prepares for these major developments, there is cautious optimism about the future inflow of resources, with plans to channel a significant portion of oil revenues into the sovereign wealth fund once production is underway. While exact figures are yet to be determined, the fund is expected to play a crucial role in securing Namibia’s economic future.
