By:Justicia Shipena
The creation of an Integrated National Financing Framework, which will unleash the power of green and blue bonds and encourage private sector participation in sustainable projects, is now at an advanced level.
Deputy Finance Minister Maureen Hinda-Mbuende disclosed this during the Environmental Investment Fund (EIF) stakeholders’ meeting held in Windhoek.
“The work carried out to date on the Integrated National Financing Framework is at an advanced stage,” Hinda-Mbuende indicated.
According to her, the framework is ideally positioned to enable resource mobilisation for drought relief and climate-related concerns.
She stated that if authorised, the framework will give adequate guidance to the Namibia EIF in the development of the SDG Namibia One.
SDG Namibia One is a EUR 1 billion blended financing vehicle for green hydrogen investment in Namibia.
Hinda-Mbuende said the platform has already raised N$760 million in grant funding for 2023.
The signing of agreements for the creation and management of Namibia’s sovereign wealth fund SDG Namibia One, the exercise of the government’s option to take up a 24% interest in the first awarded project being developed by Hyphen, and a memorandum of understanding (MOU) between a coalition of Namibian and Dutch partners were all announced by the government through EIF last month.
The government announced in the same month that Namibia’s EIF will collaborate with two Dutch entities, Climate Fund Managers and Invest International, to form Namibia SDG Namibia One.
This vehicle, which is run by Nam-H2 Fund Managers, a collaboration between the EIF of Namibia, Climate Fund Managers, and Invest International from the Netherlands, will seek to raise capital from local and international institutional investors to develop green hydrogen projects and related infrastructure in Namibia.
This coincides with the signing of a letter of intent between the Namibian government and the European Investment Bank for the funding of €500 million, of which it is recommended that some be allocated for investment through SDG Namibia One.
Additionally, the EIF conference served as an opportunity for the Fund and other institutions to network and discuss opportunities and challenges related to accelerating climate financing at scale, especially in light of the estimated N$80 billion by 2030 investment needs for climate change identified in the Nationally Determined Contribution.
“The Ministry finalised the Development Finance Assessment that resulted in the development of the Integrated National Financing Framework,” the Deputy Minister said.
A Digital Finance Ecosystem Assessment and an SDG Investor Map, according to Hinda-Mbuende, have also been created to hasten the implementation of the SDGs with the assistance of the private sector.
The Integrated Financing Strategy would increase private sector investment in sustainable projects, promote domestic income mobilisation and maximise the potential of green and blue bonds.
On the other hand, the framework would direct the efforts to mobilise resources and harness all sources of funding for the execution of medium- and long-term national development plans Hinda-Mbuende said.
Research done by the International Institute for Environment and Development (IIED) in 2007 suggests that over 20 years, annual loses to the Namibian economy could be up to 6% of GDP due to the impact that climate change will have on its natural resources alone.
Meanwhile, it is predicted that agricultural revenue would decrease by 42% by 2080 and by 28% by 2050 compared to current revenue.
If Namibia does not respond with the requisite urgency, Hinda-Mbuende said, can have a major impact on the GDP and general economic growth of the nation.
“To address challenges emerging from the climate changes and build a resilient economy, we all must take proactive measures. Government has already embarked on initiatives to adapt and mitigate the impacts of climate change,” she stated.
Hinda-Mbuende said Namibian farmers will benefit from spending money on novel technology, water-conservation strategies, and climate-smart agricultural practices in addition to increasing their production.
She also mentioned how urgent it is to provide quick attention to the detrimental economic effects of climate change in Namibia.
“As we navigate the path toward sustainable development, let us remember that addressing climate change is not only an environmental imperative but also an economic imperative.”
