The Namibia Green Hydrogen Programme (NGH2P) says it is in advanced discussions with the European Investment Bank (EIB) for a €500 million (approximately N$10.3 billion) financing facility aimed at supporting infrastructure for green hydrogen and mineral beneficiation.
According to the programme’s 2025 Mid-Year Review, the proposed loan carries favourable conditions, including a 3.5% interest rate and a five-year grace period.
“Advanced talks are underway with the European Investment Bank for a EUR500 million facility at 3.5% interest, with a five-year grace period,” the report stated.
The funding forms part of a broader strategy to reduce investment risk in Namibia’s green hydrogen sector.
Developed in partnership with the Ministry of Finance’s Economic Policy Department, the strategy includes the rollout of a globally competitive fiscal regime.
Proposed incentives include VAT exemptions on imports, lower tariffs, and relaxed NAD currency account regulations, all aimed at reducing capital costs for developers, particularly those involved in mineral beneficiation.
Further support is expected through two additional funding instruments backed by the United Nations.
These include a €25 million (roughly N$515.5 million) Mitigation Action Facility to support the technical and financial preparation of green industrial hubs, and another facility focused on piloting green hydrogen and industrial projects.
“Namibia is progressing to the second phase after being shortlisted in the top twenty-three applications,” the report noted.
Earlier this year, Namibia secured funding from the Climate Investment Funds’ Industry Decarbonisation Programme, with support from the Ministry of Finance.
The approved facility is valued between N$931 million (US$ 50 million) and N$4.66 billion (US$250 million), with a low average interest rate of 1%.
It is backed by the Clean Technology Fund and is expected to attract a 3:1 capital match from additional financiers.
The NGH2P said efforts are also underway to develop green industrialisation and beneficiation hubs by upgrading key infrastructure such as ports, railways, desalination plants, power grids, and energy systems.
Engagements with several capital providers, including development finance institutions, are ongoing to secure the most effective financing packages.
