Key Takeaways
- • Namfisa is deregistering Baobab Capital, an unlisted space capital mobiliser, and its investment vehicle Baobab Growth Fund, according to a recent Namfisa advertisement; the regulator has not disclosed the reasons, citing confidentiality obligations.
- • The Government Institutions Pension Fund (GIPF) committed N$140 million to Baobab Capital's SPV in October 2016, with N$87 million drawn down and invested in portfolio companies, per GIPF principal officer David Nuyoma.
- • GIPF says it discovered irregularities through the SPV's auditors in 2019 and commissioned an independent investigation by APEX Fund Services, with most issues rectified before the SPV directors resigned on 8 September.
- • Namfisa has directed claimants to submit claims by 16 October, and GIPF maintains that the underlying portfolio companies remain safe and sound.
Summary
The Namibian Financial Institutions Supervisory Authority (Namfisa) has advertised that it is finalising the deregistration of Baobab Capital, an unlisted space capital mobiliser, and its special purpose vehicle, Baobab Growth Fund, under the Pension Fund Act, 1956. The advertisement urged the public to refrain from engaging with Baobab Capital and its Growth Fund and directed anyone with possible claims against the asset manager to submit them to the regulator by 16 October. Namfisa said the law bars it from disclosing further details beyond the deregistration itself, citing the preservation of confidentiality.
Baobab Capital was established to close the funding gap faced by entrepreneurs and small and medium enterprises in Namibia and across southern Africa, and it reportedly mobilised N$140 million, mostly from public servants' pensions. Jerome Kisting is the company's managing director, while Primus Hango, a former GIPF chief executive officer, and Ramon Maasdorp serve as independent non-executive directors.
The Government Institutions Pension Fund (GIPF), which committed N$140 million in October 2016 to the SPV, the only vehicle with a venture capital mandate to invest in start-up companies, issued a statement clarifying the situation. According to the fund, it discovered irregularities through the SPV's auditors last year. The SPV board, on GIPF's recommendation, commissioned an independent investigation by APEX Fund Services. GIPF said most issues identified were subsequently addressed by the fund manager and the SPV, but the SPV's directors resigned on 8 September. GIPF said it is working to replace them.
Nuyoma said the commitment is spread over a 10-year period and that N$87 million had been drawn down and invested in various portfolio companies that remain on track to meet their mandates. GIPF stated that, despite the deregistration, the underlying companies and investments remain safe and sound. The Namibian reports that Namfisa, after its own investigation alongside the APEX findings, nonetheless decided to deregister the fund manager and SPV.
Baobab Capital was established to close the funding gap faced by entrepreneurs and small and medium enterprises in Namibia and across southern Africa, and it reportedly mobilised N$140 million, mostly from public servants' pensions. Jerome Kisting is the company's managing director, while Primus Hango, a former GIPF chief executive officer, and Ramon Maasdorp serve as independent non-executive directors.
The Government Institutions Pension Fund (GIPF), which committed N$140 million in October 2016 to the SPV, the only vehicle with a venture capital mandate to invest in start-up companies, issued a statement clarifying the situation. According to the fund, it discovered irregularities through the SPV's auditors last year. The SPV board, on GIPF's recommendation, commissioned an independent investigation by APEX Fund Services. GIPF said most issues identified were subsequently addressed by the fund manager and the SPV, but the SPV's directors resigned on 8 September. GIPF said it is working to replace them.
Nuyoma said the commitment is spread over a 10-year period and that N$87 million had been drawn down and invested in various portfolio companies that remain on track to meet their mandates. GIPF stated that, despite the deregistration, the underlying companies and investments remain safe and sound. The Namibian reports that Namfisa, after its own investigation alongside the APEX findings, nonetheless decided to deregister the fund manager and SPV.
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