Africa-Press – Namibia. THE Development Bank of Namibia (DBN), has financed three new companies to strengthen their operations through the installation of solar energy.
According to DBN spokesperson Jerome Mutumba, these are a truck and tractor repair plant at Gobabis, a charcoal manufacturer near Gobabis, and a large retail outlet at Okahandja.
Mutumba says although DBN is associated with photovoltaic parks, which are larger solar electricity generators that feed into the grid, the bank also finances solar power installations for individual enterprises.
He says solar installation can benefit businesses across Namibia, and while a new connection to the grid may be expensive, the initial cost can be written off against future savings and gains.
In the face of potential shortages in the Southern African Power Pool, and Namibia’s reliance on electricity imports, independent power generation for own consumption becomes an attractive security measure for business continuity, whether the business is grid reliant or not.
“The trend towards own generation by the Namibian private sector, through solar power, has become more prevalent, with widely reported capacity installed by large retail facilities and fuel outlets. This is also in line with new approaches in environmental and social governance (ESG),” he said.
Own generation by businesses alleviates demand on the national grid, making electricity available for household consumption and enterprises that are not able to establish their own solar generation.
Mutumba says the next frontier in the field of solar generation, is installation in affordable housing developments, taking the form of solar water heating and/or generation for household use.
“Although the initial cost will be passed on to the owner of the new home, the increment in cost has the medium to long-term effect of making home ownership more affordable on a monthly basis,” he said.
Mutumba says DBN provides finance under multiple sectoral facilities, including tourism, retail and wholesale, manufacturing and transport and logistics. It can also be financed as an addition to affordable housing developments.
He says the bank’s KfW-supported recovery loan may also be a source of finance.
The loan, which has a duration of 32 months or less, has a fixed interest rate of 5,925% but no interest is levied for the first 12 months of the loan period.
“Although the loan has a short duration, enterprises that have the reserves and are in a position to repay faster, should consider the opportunity.
“If businesses benefit from solar, we have a duty to support it and add it to our operational sustainability,” Mutumba said.
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