Nedbank’s Namibian subsidiary has partnered with Sunref to set up a facility to finance projects aimed at reducing the carbon footprint of businesses in Namibia.
In Namibia, companies will be able to more easily access funds to finance their green projects. This is now possible thanks to a new mechanism set up by the Namibian subsidiary of Nedbank, a financial institution based in South Africa. This mechanism for financing green projects is set up in partnership with Sunref, the green finance label of the French Development Agency (AFD), which aims to work with (local) banks for green growth in low-income countries.
Nedbank and Sunref’s new mechanism is designed to reduce the carbon footprint of businesses in Namibia. “A green credit line has been made available in partnership with Nedbank Namibia. It will provide multipurpose investment cost financing and tailor support to project developers throughout the entire project life cycle, from project identification and design to technology selection and calculation of financial and environmental benefits,” explains Britt du Plessis, Head of Corporate Banking at Nedbank Namibia.
Financing green projects
The Nedbank and Sunref facility will enable the financing of renewable energy projects for businesses, energy efficiency, agro-ecology and sustainable tourism in Namibia. Nedbank states that “any company that will directly benefit from the implementation of green technologies, seeking to diversify its portfolio or build its capacity in green finance can benefit from this offer”.
The initiative will primarily support companies investing in solar off grid to fill gaps in Namibia’s national electricity grid, which is highly dependent on neighbouring countries. “Switching to renewable energy is one of the most effective ways for a country to reduce its own ecological footprint. So “greening” business operations has become a business imperative,” says Andrew Hoy, a Sunref official.
As part of this initiative to finance green projects by companies in Namibia, Sunref will provide free technical assistance and expertise in assessing the financial impact of their green investments.