STAFF WRITER
NAMIBIA Green Hydrogen Programme is now at an advanced stage of negotiations with the European Investment Bank to access about N$10.3 billion (approximately EUR500 million) loan facility.
The proposed loan facility revealed in the Green Hydrogen Mid Year Report will come at a 3.5% interest, with a five-year grace period before repayments kick in.
The report said the transactions unit at the Namibia Green Hydrogen Programme supports the derisking of the commercial and investment environment for the green hydrogen and green industrialization sectors. They said they have identified supportive pillars as per National Development Plans with key areas of focus, including updated status, consisting of the continued efforts to create a clear and concise investment environment for the green hydrogen and derivatives sector.
“This has been largely established in partnership with the Ministry of Finances Economic Policy Department. Supporting a reduction in capital costs for developers, including the green industrial players conducting mineral beneficiation, SMIP economic enabler 1, through tariff and import VAT exemptions, as well as relaxations to Namibian currency accounts,” the report said.
The Namibiaʼs Green Hydrogen Mid-Year Review 2025 facility says they averaged 1% in USD – under the Clean Technology Fund for a value between USD50-250 million to support Namibia’s green industrialization agenda.
“ This facility has since been awarded, with the next phase, ongoing, the detailed project pipeline stage for funding of suitable public and private projects. This funding will attract a 3:1 ratio from other development funding institutions, crowding in capital,” the report said.
The green Hydrogen financial unit said it is supporting the technical unit with funding and commercial input for a National Maritime Action Plan in partnership with the Ministry of Works and Transport and future funders, University College London’s Decarbonization Unit.
“This is vital for policy certainty amid growing global shipping tariffs and to ensure Namibia remains relevant as a future Southern African maritime hub, unlocking various critical economic enablers.
“ The unit, in collaboration with the National Statistics Agency, is strengthening and further developing a social accounting matrix to consider the new industries of green hydrogen/green industrialization and how the sectors impact economic activity and household income, with detailed indications of the impact on income groups, trade balances, skill levels and regions,” the report said.
According to the report the Government and the Namibian Green Hydrogen Programmes will be looking to complement private sector efforts by mobilizing catalytic concessional financing that will help reduce the cost of capital.
“Concurrently, the Government will start
crafting the enabling legislation and amass a portfolio of incentives that should give the industry a real impetus for commercial take-off. In a nutshell, 2025 is the year the industry could lay the real foundation
for attaining escape velocity, departing the realms of piloting and entering the era of commercial scale, with local and international customers signing on to buy green products from Namibia,” the report said.
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