Namibia will need greater access to development finance and private-sector capital to turn emerging green industry opportunities into commercially viable projects, KfW Development Bank Country Director for Namibia Beatrice Lucke has said.
Speaking at the African Green Industries Summit in Swakopmund, Lucke said access to capital will be critical for businesses seeking to participate in emerging sectors such as green hydrogen and green industrialisation.
She said development finance institutions can help provide financing, but businesses will also need to demonstrate that project risks are properly understood and managed.
“From our development finance side, [we need] to give the opportunities for financing, access to capital,” Lucke said.
“Manage your risk wisely and then you can really grow here in Namibia.”
Lucke said Namibia has significant opportunities linked to its natural resources, but attracting investment will also depend on creating an environment that allows private businesses to enter the market and expand.
She said government therefore has a role in maintaining an investment environment capable of attracting private-sector participation alongside development finance.
For local businesses seeking to enter green industries, Lucke cautioned against immediately pursuing large-scale projects, arguing that companies should first test their business models and build experience through smaller developments.
“I think better advice is to start small and do a pilot, learn step by step, especially in an innovative environment like this with green hydrogen and green industry,” she said.
“So start small, learn step by step, and then we can grow together to a bigger scale.”
Lucke said the approach would allow businesses to gain experience and manage risks before committing to larger capital-intensive projects.
She said opportunities presented by Namibia’s emerging green industries could be progressively developed through a combination of private-sector investment and development finance.
Her comments come as Namibia seeks to expand local participation in green industrial value chains and attract investment into projects linked to the country’s renewable energy and natural resource potential.
