Home Southern Africa Namibian Govt to acquire 24% equity in Hyphen

Namibian Govt to acquire 24% equity in Hyphen

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The government of Namibia will be acquiring a 24% stake on offer in the Hyphen Green Hydrogen project through a newly established sovereign wealth fund. This is through a newly established sovereign wealth fund dubbed SDG Namibia One where a seed capital of €40 million in grants will be invested, stated the Green Hydrogen Commissioner and Presidential Economic Advisor, James Mnyupe.

The government of Namibia will be acquiring a 24% stake on offer in the Hyphen Green Hydrogen project through a newly established sovereign wealth fund. This is through a newly established sovereign wealth fund dubbed SDG Namibia One where a seed capital of €40 million in grants will be invested, stated the Green Hydrogen Commissioner and Presidential Economic Advisor, James Mnyupe

SDG Namibia One has been strategically established to be where funding will be kept, and it is through this fund that the government will be able to buy the 24% equity it negotiated with Hyphen Green Hydrogen. Two fund managers have been nominated and consist of the Environmental Investment Fund and another renowned fund manager in the Hague.An office to serve as an overseer of the project is being set up, and thus far, the European Union has provided funding of €1.2 million and the Netherlands has contributed €3 million.The fund manager will oversee the running of that institution and it will not only invest in Hyphen, but in other projects and infrastructures in the country.

The fund is looking at sourcing capital from different funders depending on the risks. For those who want to help develop the early-stage concept, such funds will go into a development fund of SDG Namibia One. Once it starts maturing to the construction phase of the project, then you can start attracting big funders from the region and including internationally. Then once the project is up and running, local investment to this vehicle may be required from entities such as the Government Institutions Pension Fund, and will start investing in this particular vehicle.

Read Also:

https://trendsnafrica.com/hyphen-commits-making-namibia-net-zero-by-2030/

https://trendsnafrica.com/green-hydrogen-production-in-namibia-ready-by-2026/

https://trendsnafrica.com/namibia-government-to-complete-its-agreement-with-hyphen-on-green-hydrogen/

Other notable local investors include the Development Bank of Namibia, Bank Windhoek, and NamPower, while internationally, KfW, SwedFund, USAID, and CDPQ also feature on the list of possible investors. Namibia is embarking on a multibillion-dollar green hydrogen project in the south where Hyphen Hydrogen Energy, a company appointed to implement, is undertaking a N$200-billion feasibility study to test the viability of the idea.