Life runs on three basic elements: electricity to keep the lights on, water to keep towns and industries going, and homes where families can build a future.
This is the view of Mr Christoff Bauernschmitt, a Senior Investment Professional, for Old Mutual Investment Group (OMIGNAM), at Old Mutual Namibia.
“These are more than services, they are the foundation for jobs, small businesses, and national growth,” says Bauernschmitt.
“Currently, Namibia relies heavily on imported electricity. During October 2024, official statistics show that Namibia drew approximately 270 to 488 MWh of power from the region, up to two-thirds of its demand, leaving the country vulnerable to external price and supply fluctuations.
“The plan is to bend that curve. Analysts and ratings agencies point to a build out of local generation and grid projects through FY25–FY27.”
Bauernschmitt also states that in May 2024, the World Bank approved Namibia’s first energy sector loan, US$138.5 million, to strengthen the transmission line between Auas and Kokerboom and to add a utility scale battery storage system.
“This isn’t just an engineering upgrade; it’s a critical intervention in stabilising the grid due to the rise of renewable energy.
“Renewable energy unlike conventional energy cannot help fill the power gap that arises from power plant failures and or unexpected change in demand. Prioritising grid maintenance enhances energy security in the long run.”
He says that water infrastructure is also being scaled. With demand in the Erongo region exceeding current capacity, a second desalination plant (20 million m³/year) has been approved, with commissioning expected in early 2027.
“This investment is critical for sustaining mining, green hydrogen initiatives, and urban growth in coastal towns.”
Then there’s housing, the issue most families feel directly. The backlog is severe, with more than 120 000 people on the National Housing Enterprise waiting list.
“This shortfall isn’t just a social pressure; it’s also a clear investment opportunity in affordable rental and ownership models tailored to local income levels. The big question is: how do we pay for all these needs? Government budgets alone can’t carry the load.
“That’s where alternative investments, private capital working shoulder to shoulder with public funds, comes in.”
The investment expert indicates that Namibia’s pension funds and insurers are required to invest a minimum share of their assets in-country, and to allocate a portion to unlisted investments through regulated Special Purpose Vehicles (SPVs) and Unlisted Investment Managers (UIMs).
“These rules, when paired with strong governance, create a cornerstone of local capital deployment for power plants, grids, desalination, housing and much more.
“For everyday life, the benefits are tangible. The impact is multifaceted: reliable electricity supports business continuity, secure water access sustains industrial and urban activity, and adequate housing improves living conditions.
“These investments also generate jobs and enhance long-term economic productivity.”
Bauernschmitt further states that for institutional investors, investing in Real Assets, be it infrastructure and or property assets, provides stable predictable cash flows with an inflation hedge and a long duration which mimics their liabilities.
“The Old Mutual Investment Group (OMIGNAM) has three funds: the Namibia Infrastructure Equity Investment Fund, the Namibia Housing Fund and the Namibia Commercial Properties Fund, all three geared to meet investment objectives whilst delivering socio-economic impact.
“OMIGNAM has a seasoned alternative investments team positioned to add value. Experienced teams play a vital role in structuring projects around viable cash flows and managing assets for capital growth.”
With the right mix of local currency financing, Bauernschmitt says, multilateral support, and private capital, Namibia can transform its infrastructure needs into bankable investment opportunities that attract foreign direct investment, leveraging domestic capital.
In the photo: Christoff Bauernschmitt,a Senior Investment Professional, for Old Mutual Investment Group (OMIGNAM), at Old Mutual Namibia.
