February, 28 February 2023, Windhoek
The Minister of Finance and Public Enterprise, Hon. Ipumbu Shiimi delivered the FY2023/24 National Budget as well as the Medium Term Expenditure Framework for FY2023/24 – FY2025/26 on the 22 Feberuary 2023.
The budget theme is “Economic Revival and Caring for the Poor”. The Minister indicated that the government is in full awareness and recognition of the continued hardships endured by most of our citizens from the various corners of our beloved country. “ While I express gratitude for your forbearance, particularly over the difficult economic times, I would also like to express that your government has not forgotten you and your government is a caring government”, Shiimi further alluded.
As the EIF celebrate its 11th year anniversary that was themed celebrating the past while manging for the future and reaffirming its commitment and its relentless pursuit for excellence, the Minister of Finance and Public Enterprises announced that the Environmental Investment Fund (EIF) is rolling out a green concessional loan facility targeting youth entrepreneurs wishing to undertake economic viable investments that integrates low carbon and climate adaptation instruments. In this regard, the facility aims to deploy N$72 million of such investments over the next 12 months and is expected to grow to N$300 million by 2024/25 financial year.
Hon. Shiimi further elaborated that “Moreover, during the 2023/24 financial year, the Environmental Investment Fund (EIF) through an Ecosystem-based Adaptation Project funded by the Green Climate Fund, will provide grants amounting to N$120 million to at least thirty-six (36) different community based organisations for climate change adaptation, resilience and capacity building”.
This announcement highlights the Fund’s commitment since inception that it has been committed to rebuilding natural capital as a critical economic asset and source of public benefits – especially for poor and disadvantaged Namibians.
The Fund is one of the few state-owned enterprises that has successfully blended a financing approach that considers the three main pillars of sustainable development, namely, social, economic and environmental considerations. As is evident in its 11 years of existence, this has been achieved by implementing livelihood protection actions, financing sustainable business concepts, and ensuring environmental protection.
The Environmental Investment Fund of Namibia (Fund) green concessional lending product aim to avail sustainable capital for SMEs wanting to access green financial mechanisms. The Fund notes that there is an increasing number of SMEs seeking to capitalise on green and sustainable strategies, incorporating them into their business strategy and aligning their funding mechanisms to sustainable development commitments. Supporting SMEs to improve their environmental footprint can promote the transfer, application and diffusion of cleaner production technology and methods to reduce hazardous waste, greenhouse gas (GHG) emissions, water pollutants, while also helping them become more competitive; invest funds in such a way that the Facility makes a tangible and visible impact in the Namibian economy through the provision of concessional loans, guarantees and equity to Namibian individuals and enterprises, targeted mainly to communities predominantly in the rural and off-grid areas, thereby stimulating economic activity through sustainable development oriented concessional financing; generate acceptable long-term returns compatible with other Southern African investment opportunities in the “green” space; and support the creation of social and economic up-liftmen in Namibia, through the deployment and use of innovative green technologies and sustainable agricultural practices to mitigate the effects of climate change.
In order to achieve its investment objective, the Facility’s strategy is to target investments that have the potential of making a tangible long-term development impact to the lives and livelihood of rural communities, thereby unlocking significant economic activity and value; provide credit financing to individuals, Small Medium enterprises and farmers alike to be extended over loan terms ranging between 12 – 72 months; and Invest in a range of other loan products designed to avail access to finance, aimed towards poverty alleviation, employment creation and rural development.
For more information on the budget statement, follow the link below: www.mfpe.gov.na
About EIF
The Environmental Investment Fund is Namibia’s own response to the growing global need for green financing. Established in terms of the Environmental Investment Fund Act, Act 13 of 2001 with a mandate to raise funding for investments into projects and programmes that promote sustainable development it is currently one of the fastest growing green and climate financing institutions in Africa. As part of its vision to be “a recognized leader in the development and application of innovative financing mechanisms to support sustainable development and ensuring inclusive development for all the people of Namibia.
Amongst its recognizable impacts to date since inception, the Fund has disbursed grants valued at more than N$ 583 million, ensured that more than 240, 256 hectares of land are under conservation, 71 grants approved for different environmental projects, created more than 950 employment opportunities mostly rural based and include season ones and retrofitted 169 boreholes that benefitted more than 77 000 who now have access to portable drinking water and attracted N$ 820 million for concessional Green Credit Line with participating commercial bank from Agence Française de Développement (AFD) under the SUNREF project in Namibia. To-date attracted and mobilised more than N$3 billion mostly from multilateral and developmental funding institutions and partners. For more information visit: http://www.eif.org.na
For more information on the EIF visit: http://www.eif.org.na/
Contact Person: Lot Ndamanomhata
Manager Corporate Communications
Environmental Investment Fund of Namibia (EIF)
Tel: +264 811601846/+264614317706
Email: LNdamanomhata@EIF.ORG.NA
