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The European Union (EU) and Namibia unveiled a partnership with the potential to mobilise N$400 billion in private investments for Namibia’s green hydrogen (GH2) sector, a move that could more than double the country’s GDP.
EU Ambassador Ana Beatriz Martins announced that a pipeline of seven to nine projects, primarily spearheaded by European companies, is currently underway, with some expected to reach final investment decisions by late 2025. The partnership has the potential to mobilise N$400 billion in European private investments, more than doubling the country’s GDP and enabling Namibia’s aspirations for green industrialisation. She emphasised that the EU’s collaboration with Namibia highlights the transformative potential of the green hydrogen strategy and reflects a paradigm shift in the EU’s development policy.
Namibia’s green energy sector will contribute to global decarbonisation efforts, particularly in energy-intensive industries like steel and shipping. Locally, the green industrialisation strategy will create jobs and foster economic opportunities, particularly for the youth, Martins added.
Martins made these remarks during a N$42-million grant signing ceremony with new partners aimed at promoting inclusive green growth. The EU Delegation partnered with the Integrated Rural Development, Namibia Development Trust, Namibia Nature Foundation and Deutsche Welle Academy to strengthen civil society’s role in Namibia’s development agenda. The three projects under this grant will enhance civil society organisations’ (CSOs) capacity to engage meaningfully in policy debates on Namibia’s fast-growing green energy and extractive industries, ensuring their economic, environmental and social sustainability.
Namibia’s green industrialisation strategy requires over USD 55 billion in total investment, according to a recent report. The government, alongside the GH2 Namibia programme, has allocated USD 15 billion for crucial infrastructure development, while an additional USD 40 billion is earmarked for investments in green industries. The strategy highlights that achieving these ambitious goals will depend on innovative financing mechanisms and robust public-private partnerships (PPPs). Infrastructure enablers, including rail and port facilities, will need over USD 15 billion in capital expenditure. However, current spending commitments of USD 4 billion over the next five years fall short of these requirements, necessitating off-budget financing from domestic and international private sectors.
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Investments of approximately USD 40 billion are estimated for green hydrogen production and green manufacturing industries. These include high-value sectors such as green HBI production, solar panel manufacturing, electrolyser production, wind turbine manufacturing, lithium refining, rare earth element (REE) refining, flat glass production and synthetic fuel production.
