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Namibia’s Green Hydrogen Programme (NGH2P) is making significant strides toward establishing itself as a key player in the global green energy sector. At the heart of this momentum is an ongoing negotiation with the European Investment Bank (EIB) to secure a €500 million (approximately N$10.3 billion) financing facility. This critical investment aims to support infrastructure essential for the development of Namibia’s green hydrogen initiatives and mineral beneficiation capacity.
According to the NGH2P’s 2025 Mid-Year Review, the proposed loan from the EIB is expected to offer highly favourable terms, including a low interest rate of 3.5% and a five-year grace period. These terms are intended to provide breathing room during the early phases of project development and scaling, significantly reducing initial financial pressure on developers.
The funding aligns with Namibia’s broader strategy to reduce investment risk and attract both domestic and international interest in its green hydrogen sector. The strategy—developed in close coordination with the Ministry of Finance’s Economic Policy Department—includes the creation of a globally competitive fiscal framework. Proposed measures to cut capital costs, particularly for mineral beneficiation projects, include exemptions from VAT on imports, reduced tariffs, and the easing of regulations surrounding NAD currency accounts. These incentives are designed to make Namibia more attractive as a green energy investment destination.
Beyond the EIB facility, the NGH2P is also tapping into support from United Nations-backed funding mechanisms. These include a €25 million (around N$515.5 million) Mitigation Action Facility aimed at advancing technical and financial planning for green industrial hubs, as well as another facility focused on piloting green hydrogen and industrialisation projects. Namibia has already advanced to the next stage of consideration after being shortlisted from among 23 applicants.
Additional support is being provided through the Climate Investment Funds’ Industry Decarbonisation Programme, administered by the Ministry of Finance. Backed by the Clean Technology Fund, this facility offers funding between N$931 million (USD 50 million) and N$4.66 billion (USD 250 million), with an average interest rate of just 1%. It also brings the advantage of a 3:1 capital matching ratio from other investors, helping to amplify the overall funding impact.
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To support its industrialisation goals, the NGH2P is prioritising major infrastructure upgrades. These include the expansion and modernisation of ports, railway systems, desalination facilities, power grids, and broader energy systems. Discussions are already underway with various development finance institutions and capital providers to establish efficient, long-term financing models that ensure sustainability. In sum, Namibia’s blend of strategic financial partnerships, investor-friendly policies, and infrastructure development highlights its determination to lead in the global transition to green hydrogen and industrial decarbonisation.
