Investors update: Dutch firms create $1.1bn sovereign wealth fund for Namibia
3 min Read June 21, 2023 at 1:17 PM UTC
![Daba finance invest in Africa](https://daba-wp-bucket.s3.amazonaws.com/wp-files/pexels-photo-868110.jpeg)
Dutch firms create $1.1bn sovereign wealth fund for Namibia
Highlights
- State-backed firms from the Netherlands have partnered with Namibia to create a sovereign wealth fund focused on green hydrogen.
- SDG Namibia One, a blended financing vehicle for green hydrogen investment in the southern African nation, will include the participation of Namibia’s Environment Investment Fund and The Netherlands’ Climate Fund Managers BV and Invest International BV.
- The $1.1 billion SDG Namibia One seeks to raise capital from local and international investors and will finance Namibian green hydrogen projects.
Source: Bloomberg
Our Takeaway
With its vast resources, Namibia has the potential to become one of the main renewable energy hubs on the African continent and worldwide. The South African nation, one of the world’s sunniest and most sparsely populated, wants to harness its potential for solar and wind energy to produce green hydrogen and position itself as a renewable energy hub in Africa. But it remains to be seen whether the water-scarce country, relatively far away from key export markets, will be able to deliver a cost-competitive product in an emerging global hydrogen sector.
South Africa’s inflation beats estimates to reach a 13-month low
Highlights
- South African inflation slowed more than projected to a 13-month-low in May, easing pressure on the central bank to continue raising interest rates.
- The annual inflation rate was 6.3%, down from 6.8% in April, according to a report released by the statistics office on Wednesday.
- The slowdown from 6.8% in April was greater than forecast. Analysts polled by Reuters had expected a reading of 6.5% while the median estimate of 13 economists in a Bloomberg survey was the same. Prices rose 0.1% in the month.
Source: Bloomberg
Our Takeaway
The latest figure takes South Africa’s inflation closer to the central bank’s 3%-6% target range, where inflation was last seen in April 2022. The South African Reserve Bank (SARB) has raised interest rates 10 times in a row to try to bring inflation back to target. Its next policy meeting is in about a month’s time, in July. While inflation is beginning to show signs of abating in Africa’s most industrialized economy, risks remain linked to the country’s power crisis.
Egypt announces five-year tax exemption for startups
Highlights
- President Abdul Fattah El Sisi has announced a five-year tax exemption for startups, with an aim to boost the country’s ecosystem and retain its talent.
- The announcement was made during El Sisi’s recent visit to Borg El Arab Technological University in Alexandria.
- Over the first five months of the year, Egyptian startups attracted as much as $426 million in funding, with MNT-Halan leading the fundraising with its $400 million round raised in February.
Source: Wamda
Our Takeaway
Over the past decade, Egypt’s tech startup ecosystem has experienced remarkable growth and transformation and in the last five years, investments totaling $1.5 billion have been raised by Egyptian startups, per Wamda, showcasing the increasing confidence in the North African country’s entrepreneurial ecosystem. The surge in entrepreneurial activity has been supported by a burgeoning young population, increasing internet penetration, and favorable government policies and we believe that ultimately, this supportive tax environment would accelerate further growth while positioning the country as a regional hub for innovation and entrepreneurship.
This material has been presented for informational and educational purposes only. The views expressed in the articles above are generalized and may not be appropriate for all investors. The information contained in this article should not be construed as, and may not be used in connection with, an offer to sell, or a solicitation of an offer to buy or hold, an interest in any security or investment product. There is no guarantee that past performance will recur or result in a positive outcome. Carefully consider your financial situation, including investment objective, time horizon, risk tolerance, and fees prior to making any investment decisions. No level of diversification or asset allocation can ensure profits or guarantee against losses. Articles do not reflect the views of DABA ADVISORS LLC and do not provide investment advice to Daba’s clients. Daba is not engaged in rendering tax, legal or accounting advice. Please consult a qualified professional for this type of service.
Our weekly newsletters offer major news updates and insights on the African economy and markets
Next Frontier
![](/images/home/man.jpg)
![](/images/home/avatar2.jpg)
![](/images/home/avatar1.jpg)