Africa-Press – Namibia. POTENTIAL investors keen on taking part in the much talked-about green hydrogen project arrived in Namibia yesterday to negotiate with the government on the way forward.
Presidential economic adviser James Mnuype yesterday told Desert Radio 95.3 FM the green hydrogen project, which would be a Namibian hub of synthetic energy, has garnered about N$700 million from Germany thus far.
He said the government wants to deploy a part of this amount in the first quarter of this year, adding the project is a Harambee Prosperity Plan II (HPPII) initiative looking to collaborate with the private sector.
Mnuype said the project could attract over a billion dollars in potential investments.
“Of course people look at green hydrogen as a ‘project’, but it is simply an initiative to create an avenue for synthetic energy in the future for Namibia. It is a project with huge potential for the country and can create much-needed jobs and economic benefits,” he said.
Mnuype said it is an innovative initiative the government has embarked on by researching global trends, engaging in hydrogen diplomacy, and considering what attracts foreign direct investment.
Mnyupe said it is not a complex initiative as it essentially entails deploying large-scale solar projects and using solar energy and desalinated water to create synthetic fuel.
In 2021 the initiative was a strategic bid that was marketed around the world, and received nine proposals from six different developers.
He said the government has received overwhelming response from potential investors, while widespread consultations are done to ensure the project’s success.
“Namibia is going to try and see whether we can’t use our abundant world-class solar resource to become energy independent,” Mnuype said, adding that this would require the reimaging of the country as it is a net importer of almost everything, including electricity.
“In drought-stricken areas we import 70% of our electricity. Could you imagine a scenario where we stop imports, and NamPower saves N$3 billion from buying electricity, and we become net exporters of electricity? Not many Namibians have ever imagined a reality like that, but that is what we are trying to do,” Mnyupe said.
He said the government is also working on an all-encompassing model to deal with poverty eradication and inequality in the country by encouraging a multisectoral approach to the issue.
He said Namibia is behind in terms of its vaccination rate compared to its neighbours South Africa and Botswana.
“That is a huge part of our economic recovery,” Mnuype said.
The green hydrogen frenzy has been met with criticism from the public who felt the locals were being neglected on the opportunities that are available.
Last year, national documents indicated that the government was going to go all out to raise several sustainability bonds to finance the green hydrogen drive.
These are expected to be issued sometime this year.
This will lead to Namibia joining the the “Build Back Better” bandwagon.
The building back better world initiative is a June 2021 project by the group of seven countries and mainly has been pushed by the International Monetary Fund on financing, which is calling on countries and companies to invest in more environmentally friendly projects, as well as green and sustainable economy.
This call to building back better also comes with cheap funding, mainly accessed through the issuance of green and sustainability bonds.
These bonds are debt financing instruments issued to mainly fund green and sustainable projects hence their name and are cheaper compared to normal bonds.
Despite having popularity over the past few years, their issuance remains yet a drop in the ocean in Namibia’s capital market.
According to a document seen by The Namibian last year, come the last quarter of 2022, Namibia should be able to issue the said sustainable bond.
In an interview with Bloomberg last year, finance minister Iipumbu Shiimi also indicated a possible issuance but did not state yet how much the government is looking at raising.
The state has a very high debt level and is considering every possibility to access cheap money.
According to the document, the government intends to establish, some through private partnership agreements, projects worth over N$64 billion.
That is almost half of the national debt balance.
* Additional report by Lazarus Amukeshe
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