NAMIBIA UNVEILS €500M GREEN ENERGY DEAL TO DRIVE INDUSTRIALISATION

Namibia fast-tracks green industrialisation with €500M EIB deal and global climate financing to boost hydrogen and mineral beneficiation sectors.

Namibia Green hydrogen programme Mineral beneficiation Finance Climate investment Development Infrastructure.
Namibia Green Hydrogen
Namibia Green Hydrogen



Namibia is ramping up efforts to establish itself as a leading force in the global green energy transition, with a potential €500 million financing deal currently under negotiation with the European Investment Bank (EIB). The funding, if secured, will play a pivotal role in accelerating the country’s Green Hydrogen Programme (NGH2P) and bolstering its mineral beneficiation ambitions.

According to the NGH2P’s 2025 Mid-Year Review, the proposed facility is expected to be provided on highly concessionary terms, including a low interest rate of 3.5% and a five-year grace period. These terms are designed to ease financial pressure during the early phases of project implementation and attract more private sector participation.

The government, working in close coordination with the Ministry of Finance’s Economic Policy Department, is also finalising a set of investment-friendly incentives aimed at strengthening Namibia’s position as a green industrial hub. The package includes exemptions from VAT on key imports, lower tariffs, and more flexible policies around NAD currency accounts. These measures are intended to cut capital costs and make Namibia more competitive on the global investment stage.

In addition to the EIB loan, Namibia is leveraging support from other international funding sources. The country has been shortlisted for a €25 million (N$515.5 million) Mitigation Action Facility, backed by the United Nations, to support early-stage planning and technical work for green hydrogen and industrial pilot projects.

Further financial backing is being sourced through the Climate Investment Funds’ Industry Decarbonisation Programme, administered locally by the Ministry of Finance. Funded by the Clean Technology Fund, this facility offers between N$931 million (USD 50 million) and N$4.66 billion (USD 250 million) in concessional loans with an average interest rate of just 1%. The programme also includes a 3:1 capital matching arrangement, enabling Namibia to attract three times as much investment for every dollar secured from the fund.

To support the anticipated industrial growth, Namibia is prioritising large-scale infrastructure upgrades, including port expansions, rail improvements, desalination plants, and the modernisation of energy and power grid systems. Discussions are ongoing with various development finance institutions and private capital providers to secure long-term financing structures for these critical infrastructure projects.

Government officials say the combination of strategic funding, pro-investment reforms, and infrastructure development will place Namibia at the forefront of Africa’s green energy revolution.

With the global energy landscape shifting rapidly toward renewables, Namibia’s coordinated and forward-looking strategy could set a new benchmark for how African nations approach green industrialisation.

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