Staff Reporter
WINDHOEK, Sept. 1 — On August 30, 2023, the Development Bank of Namibia (DBN) and KfW Development Bank formalized their agreement by signing a second concessional loan, totalling approximately N$600 million (equivalent to €30 million). This substantial financial infusion is earmarked for the development of climate-related infrastructure, including projects in renewable energy, water resources, and low-carbon transportation.
Addressing Climate Change Through Financing
The global push for climate-appropriate financing is gaining momentum, and Namibia is no exception. Recognizing the pressing need for such funding, DBN has stepped up its efforts in the local market, thanks to the invaluable support of the German Development Cooperation. DBN’s expanding portfolio of climate-mitigating projects encompasses a wide spectrum, from solar photovoltaic and wind generation infrastructure to both rural and urban water projects and public transport initiatives.
This new credit line signifies a significant boost for DBN, enabling them to provide long-term financing options that incentivize private and public investors to engage in climate-related infrastructure projects. It builds upon the foundation laid by the first credit line, signed in December 2018, which amounted to approximately N$240 million and played a pivotal role in facilitating the establishment of solar PV infrastructure by private companies.
Promoting Sustainable Investment
During the signing ceremony, Beatrice Lucke, KfW Country Director, offered her congratulations to DBN, highlighting the bank’s pivotal role in contributing to Namibia’s economic growth and social development. She emphasized the growing importance of green and transformative infrastructure in achieving sustainable development worldwide and expressed hope that the concessional loan would support projects aligned with these objectives.
Martin Inkumbi, CEO of DBN, underscored the bank’s commitment to advancing a significant project pipeline, particularly in the Renewable Energy sector. He emphasized that access to affordable financing is a linchpin for realizing climate-related infrastructure projects. Moreover, Inkumbi emphasized that DBN not only recognizes the urgency of infrastructure that reduces emissions but also the need for climate adaptation measures, given the challenges posed by rising temperatures and droughts in Namibia.
In expressing his gratitude to KfW and the German Government for their collaborative efforts in addressing climate challenges, Inkumbi emphasized that this funding infusion would provide DBN with the flexibility to further develop and refine models and options. Ultimately, this support will help grow DBN’s portfolio of projects focused on climate change and adaptation, positioning the bank as a leading player in both the national and regional climate financing landscape.
