Namibian Pension Fund faces N$815M loss risk in South African tax dispute

Ericah Shafudah disclosed that the Government Institutions Pension Fund could lose N$815 million if a South African court rules against the company holding its investments in a tax dispute with the South African Revenue Service. Shafudah explained that the fund recorded N$922.2 million in impairment provisions in its 2025 annual financial statements, with N$815 million linked to Signal Structured Finance Fund. She clarified that the provision is a precautionary accounting measure, not a realized loss, and the dispute remains unresolved in South African courts.

The Government Institutions Pension Fund is Namibia’s largest pension fund, managing retirement savings for thousands of public servants. The potential loss highlights risks associated with the fund’s offshore investments and the safeguards protecting public sector retirement savings. The exposure arose from a SARS tax claim against an investment company.