NDN Staffer
WINDHOEK, April 28 — A finance-focused panel at the 2023 Namibia International Energy Conference recently discussed new ways to finance and develop capital-intensive energy and infrastructure projects in Africa. The panel was held under the theme “Financing Energy & Power Projects: Trends, Outlook & Forecast,” and focused on how Namibia can finance large-scale energy projects while structuring deals that benefit the local economy.
As more global financial institutions move away from fossil fuel lending, emerging producers like Namibia are seeking to drive local and regional financial participation in capital-intensive projects and trade infrastructure. According to Paul Eardley-Taylor, Southern African Regional Head of Oil & Gas for Standard Bank, finding a new pool of liquidity is critical, and local banks will need to ramp up support at every level of the hydrocarbon value chain.
In addition to leveraging foreign investment, panellists discussed how the sector can use foreign support as a means of creating local capacity through regional debt and credit-support instruments. Claire Hobbs, Chief Treasurer for the Bank of Windhoek, urged local firms to take a more active role in financing Namibia’s energy and infrastructure sectors. She also emphasized the importance of securing regional partners and backing local content efforts.
To increase the availability of domestic capital, traditionally conservative pension funds are now getting involved in the sector. David Nuyoma, CEO of the Government Institution Pension Fund, has invested in a range of new energy projects, with a focus on renewable energy.
While local and regional financing efforts are actualizing new developments, Bruce Hansen, Managing Director at Simonis Storm Securities Namibia, emphasized that such efforts are critical to the long-term success of the Namibian and African energy industry. According to Hansen, the world will need 10,000 MW of generation capacity by 2030, and innovative capital deployment structures will be necessary to meet this demand. – Namibia Daily News
