(3 Minutes Read)
Namibia’s Environment, Forestry, and Tourism Deputy Minister Heather Sibungo stated that according to a report from the African Development Bank, Namibia will require USD 5.3 billion between 2021 and 2030, with USD 565 million needed annually to meet its green growth objectives. He emphasised the importance of leveraging green bonds and other innovative financing mechanisms to meet Namibia’s climate change targets.
The finance sector, she said, can play a crucial role by mobilising private investment through tools such as sustainability-linked loans and blended finance to attract private investment. The Minister delivered these remarks at a Bank of Namibia Thought Leadership Event under the ‘Leveraging Innovation for Green Finance’ theme. The event focused on global climate challenges and the pressing need for greening the financial system.
She added that the government, through institutions like the Ministry of Environment, Forestry and Tourism and the Ministry of Finance and Public Enterprises, should collaborate with the Bank of Namibia and other financial institutions to create an enabling environment for climate investment. In this regard, innovative financial mechanisms such as green bonds and sustainability-linked loans to channel investments into projects that address both mitigation and adaptation needs should be prioritised.
She added that the work of institutions such as the Environmental Investment Fund (EIF), for instance, has been instrumental in mobilising and managing financial resources for climate action and supporting projects such as climate-resilient agriculture and renewable energy.
Furthermore, local institutions have also already made strides in sustainable finance. Bank Windhoek issued the country’s first green bond in 2018 and a sustainability bond in 2021, to fund renewable energy, sustainable agriculture, and biodiversity projects. Standard Bank Namibia followed with a green bond in 2022, while RMB Namibia’s green bond, issued in partnership with FNB Namibia, raised funds for green buildings and renewable energy initiatives. Nedbank Go-Green Fund has since its establishment in 2001 been instrumental in raising awareness and altering perceptions regarding environmental interactions through partnerships with key stakeholders in conservation and sustainability, such as the Namibia Nature Foundation (NNF) and Eco-Awards Namibia, promoting sustainable practices and encouraging responsible environmental stewardship. This is indicative of a financial sector that is committed to driving sustainable projects.
The Bank of Namibia Governor, Johannes !Gawaxab, noted that climate change is already altering the structure of the economy, with both physical and transition risks threatening the value of financial assets. He emphasised that there needs to be a comprehensive, inclusive strategy that integrates sustainability with economic growth. This must be a collaborative effort—one that is co-created by both the public and private sectors and shaped by strong partnerships. To accomplish this, one needs a robust sustainability blueprint that will pave the way for long-term stability and prosperity,” he noted. Gawaxab noted that the challenges posed by climate change are immense, but they also offer Namibia a unique opportunity to improve its economy.
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Namibia is facing rising temperatures, erratic rainfall patterns, and more frequent droughts—all of which are negatively impacting key sectors such as agriculture, mining, and manufacturing. The projected economic costs are significant, with the World Bank estimating that climate change could reduce Namibia’s GDP by up to 6.5% annually. the challenges posed by climate change are immense, but they also offer Namibia a unique opportunity to improve its economy.
