The government of Namibia has been invited to participate in the Climate Investment Fund’s (CIF’s) $1-billion industry decarbonisation investment programme, the first global concessional finance initiative dedicated to reducing industrial greenhouse-gas (GHG) emissions in developing countries.

Namibia was chosen from 26 global applicants and has now been invited to craft an investment plan that outlines how it plans to mobilise up to $250-million of concessional capital to pioneer industry decarbonisation within its borders and beyond.

Through the deployment of concessional funding, the programme is designed to support the private sector in developing clean technology supply chains, catalyse investment in low to net-zero carbon business models and drive the regional transition of high-emitting industries toward zero-carbon practices.

The CIF notes that, in the process, the programme aims to position recipient countries for long-term economic competitiveness and will enable them to take advantage of the global market for green industrial goods projected to reach $2-trillion by 2030.

Guided by the Ministry of Finance, Namibia’s successful application ranked third globally and was crafted and submitted by the Namibia Green Hydrogen Programme in partnership with the global asset manager Ninety One.

The selection is expected to catalyse significant co-financing from multilateral development banks and private-sector partners and aligns with the country’s national objective to attract foreign direct investment.

With support from the CIF, Namibia intends to catalyse green industrialisation by developing critical minerals, green hydrogen and renewable energy value chains; transform its electricity sector by enhancing energy independence and security through clean energy deployment; support decarbonisation of regional power pools, encouraging integration and cleaner energy exchanges across Southern Africa; promote inclusive development through the creation of green jobs, local and regional value addition and broader access to energy; and undertake institutional strengthening through capacity building to support a just and equitable transition, grounded in gender-inclusive strategies.

By strategically deploying CIF funding, Namibia will showcase how smaller nations can lead the energy transition through innovation and regional cooperation.

“The government of the Republic of Namibia is committed to mobilising fit-for-purpose capital as espoused in our Development Finance Report, which recognised the utility of blended financing as a key instrument to engender socioeconomic emancipation.

“We are excited to work closely with our private sector and our development partners to build future-proof industrial clusters that can deliver the sustainable growth, employment opportunities, and economic diversification we seek,” says Namibia Finance Minister Ericah Shafudah.

Namibia Green Hydrogen Programme head James Mnyupe adds that Namibia’s application and subsequent selection to develop an investment plan, marks a critical milestone in Namibia's industrial transformation journey.

“The CIF industry decarbonisation programme will enable us to demonstrate how concessional finance can derisk pioneering investments in green industries while ensuring the region’s transition is just, inclusive, and aligned with its developmental priorities.

“We are proud to have worked closely with our government and Ninety One to have crafted what has been recognised as a pioneering vision for our country and indeed Southern Africa. We look forward to co-developing an investment plan aligned with our forthcoming Sixth National Development Plan.

“Green industrialisation will be a key driver of inclusive economic growth, job creation, and progressive climate action for Namibia,” Mnyupe continues.

“The global race to decarbonise industry has begun, and emerging markets are out front. Decarbonising industry is about more than emissions; it’s about securing long-term prosperity and the jobs of tomorrow. And it’s about producing the low-carbon industrial inputs that are urgently needed to expand renewable-energy capacity and power the global economy,” says CIF CEO Tariye Gbadegesin.