Staff Writer
Minister of industries, mines and energy Modestus Amutse says Namibia must rethink green finance to ensure that it supports productive capacity, broader economic participation and measurable development outcomes rather than merely placing a green label on conventional finance.
Speaking at the official opening of the Second International Conference on Finance and Sustainable Business at the Namibia University of Science and Technology (NUST) on Wednesday, Amutse said sustainable business models must be commercially viable, environmentally responsible and socially inclusive.
“For us, rethinking green finance cannot mean placing a green label on conventional finance. It must change what we finance, how risk is shared, who participates and what productive capacity remains in Namibia,” he said.
Amutse said Namibia’s development challenges made financing central to the country’s sustainability agenda.
He noted that the country has a population of just over three million people spread across a vast geographical area, while income inequality remains high and only 59.5% of households had access to electricity according to the 2023 Census.
He said the targets contained in the Sixth National Development Plan (NDP6) would require substantial investment from both the public and private sectors.
By 2030, NDP6 aims to achieve economic growth of at least 7%, raise the employment rate to 75%, increase manufacturing’s contribution to GDP from 10.6% to 18%, expand processed mineral exports from 46.6% to 57%, increase installed electricity capacity from 734MW to 1 153MW and raise electricity access to 70%.
He said Namibia’s renewable-energy potential, critical minerals, strategic Atlantic location and emerging petroleum resources presented significant opportunities, but warned that natural resource endowment alone would not guarantee development.
Amutse said Namibia’s green-economy ambitions were industrial rather than purely environmental, with renewable power expected to support mines, factories, farms and small businesses, while green hydrogen could enable industries such as green iron and fertiliser production.
He pointed to the range of projects being developed in Namibia, from Cleanergy’s Hydrogen Dune facility, which combines a 5MW solar plant, 5MW electrolyser and 5.9MWh battery storage, to the proposed Hyphen project, which envisages capital investment exceeding US$10 billion.
He said a just transition had to reflect Namibia’s circumstances, including the need to expand electricity access, reduce poverty and create new industries.
“If petroleum production becomes commercially viable, a finite resource must be converted into lasting assets: skills, institutions, infrastructure, reliable electricity, water security, renewable energy and a diversified economy,” he said.
At household level, Amutse said financing mechanisms also needed to become more inclusive.
He noted that while the ministry’s Solar Revolving Fund provides subsidised loans for solar technologies, conventional credit-based financing does not adequately serve rural households without formal incomes, unemployed young people and informal enterprises.
He called for targeted capital subsidies for poor households, pay-as-you-go financing models, guarantees for underserved borrowers, results-based finance for last-mile electricity connections and investable mini-grid models.
On critical minerals, the minister said Namibia should focus not only on extracting minerals but also on increasing the value created within the country through local processing, skills development, infrastructure and supplier industries.
Amutse challenged NUST and conference participants to develop practical financing and policy solutions that could move from research into bankable projects.
