Germany announced on Friday that it would pay more than €1 billion ($1.22bn) to aid projects in Namibia after recognising for the first time that it committed genocide during its occupation of the African country.
The announcement came after more than five years of negotiations between the two countries over events in the territory controlled by Germany from 1884 to 1915.
"We will now officially refer to these events as what they are from today's perspective: genocide," said German Foreign Minister Heiko Maas.
Namibia said the announcement was a "first step".
German colonial settlers killed tens of thousands of indigenous Herero and Nama people between 1904 and 1908 – acts considered by historians to be the first genocide of the 20th century.
"The acceptance on the part of Germany that a genocide was committed is the first step in the right direction," said Alfredo Hengari, a spokesman for Namibian President Hage Geingob.
"It is the basis for the second step, which is an apology, to be followed by reparations."
While Berlin previously acknowledged that atrocities occurred at the hands of its colonial authorities, it repeatedly refused to pay direct reparations.
Mr Maas said Germany would ask forgiveness from Namibia and the descendants of the victims of the massacres "in light of the historical and moral responsibility of Germany".
In a "gesture to recognise the immense suffering inflicted on the victims", Berlin will support the "reconstruction and the development" of Namibia through a financial programme of €1.1bn, he said.
The sum will be paid over 30 years, according to sources close to the negotiations, and must primarily benefit the descendants of the Herero and Nama.
But Mr Maas stopped short of referring to reparations, saying the payment did not open the way to any "legal request for compensation".
Mr Geingob will convene meetings with the affected communities in the coming weeks to work out the "implementation modalities of what has been agreed with Germany", Mr Hengari said.
Namibia was called German South West Africa during Berlin's rule. It was then ruled by South Africa for 75 years, before gaining independence in 1990.
Tensions with German colonial authorities boiled over in 1904 when the Herero – deprived of their livestock and land – rose up, followed by the Nama, in an insurrection crushed by imperial troops.
In the Battle of Waterberg in August 1904, about 80,000 Herero, including women and children, fled and were pursued by German troops across what is now known as the Kalahari Desert. Only 15,000 survived.
German military commander Lothar von Trotha, sent to put down the rebellion, issued an "extermination order" that year.
At least 60,000 Herero and about 10,000 Nama were killed between 1904 and 1908.
Colonial soldiers carried out mass executions and forced men, women and children to flee to the desert, where thousands died of thirst. They also established concentration camps, including one on Shark Island in southern Namibia.
The atrocities committed during colonisation affected relations between Berlin and Windhoek for years.
In 2015, the countries started negotiating an agreement that would combine an official apology from Germany and development aid.
But in August last year, Namibia said Germany's offers were unacceptable. No details of the offers were provided at the time.
Mr Geingob said Berlin declined to accept the term "reparations".
But in an effort to ease reconciliation, in 2018 Germany returned the bones of members of the Herero and Nama tribes, with Minister of State for International Cultural Policy Michelle Muentefering asking for "forgiveness from the bottom of my heart".
Tributes from the UAE's personal finance community
• Sebastien Aguilar, who heads SimplyFI.org, a non-profit community where people learn to invest Bogleheads’ style
“It is thanks to Jack Bogle’s work that this community exists and thanks to his work that many investors now get the full benefits of long term, buy and hold stock market investing.
Compared to the industry, investing using the common sense approach of a Boglehead saves a lot in costs and guarantees higher returns than the average actively managed fund over the long term.
From a personal perspective, learning how to invest using Bogle’s approach was a turning point in my life. I quickly realised there was no point chasing returns and paying expensive advisers or platforms. Once money is taken care off, you can work on what truly matters, such as family, relationships or other projects. I owe Jack Bogle for that.”
• Sam Instone, director of financial advisory firm AES International
"Thought to have saved investors over a trillion dollars, Jack Bogle’s ideas truly changed the way the world invests. Shaped by his own personal experiences, his philosophy and basic rules for investors challenged the status quo of a self-interested global industry and eventually prevailed. Loathed by many big companies and commission-driven salespeople, he has transformed the way well-informed investors and professional advisers make decisions."
• Demos Kyprianou, a board member of SimplyFI.org
"Jack Bogle for me was a rebel, a revolutionary who changed the industry and gave the little guy like me, a chance. He was also a mentor who inspired me to take the leap and take control of my own finances."
• Steve Cronin, founder of DeadSimpleSaving.com
"Obsessed with reducing fees, Jack Bogle structured Vanguard to be owned by its clients – that way the priority would be fee minimisation for clients rather than profit maximisation for the company.
His real gift to us has been the ability to invest in the stock market (buy and hold for the long term) rather than be forced to speculate (try to make profits in the shorter term) or even worse have others speculate on our behalf.
Bogle has given countless investors the ability to get on with their life while growing their wealth in the background as fast as possible. The Financial Independence movement would barely exist without this."
• Zach Holz, who blogs about financial independence at The Happiest Teacher
"Jack Bogle was one of the greatest forces for wealth democratisation the world has ever seen. He allowed people a way to be free from the parasitical "financial advisers" whose only real concern are the fat fees they get from selling you over-complicated "products" that have caused millions of people all around the world real harm.”
• Tuan Phan, a board member of SimplyFI.org
"In an industry that’s synonymous with greed, Jack Bogle was a lone wolf, swimming against the tide. When others were incentivised to enrich themselves, he stood by the ‘fiduciary’ standard – something that is badly needed in the financial industry of the UAE."
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UAE currency: the story behind the money in your pockets
Gothia Cup 2025
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Europa League semi-final, second leg
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Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”