18 September 2013, Windhoek – The advancement of greener technologies in Namibia at domestic level has received another boost with the imminent launch of a Green Soft Loans financing mechanism, set to be launched by the SME Bank and the Environmental Investment Fund of Namibia in Windhoek next week.
The launch of the initiative, aimed at providing an estimated (initial) 2000 Namibian households with access to financing for green technologies takes place during the Sustainable Land Management Business Forum, which coincides with the weeklong 11th Conference of Parties to the United Nations Framework to Combat Desertification, which Namibia is hosting, the Fund said in a statement.
The Fund is mandated to provide loans that support environmental sustainability as well as promoting socio- economic development in Namibia. In view of that, the SME Bank has been identified as the financial intermediary partner.
The agreement between the two institutions constitutes a partnership to initiate a Green Loan Scheme, which is ring fenced for environmental investments and will provide subsidized financing to qualifying Namibian households for the purposes of acquiring eco- friendly appliances such as solar water geysers, solar water pumps, solar lightning devices and equipment that optimize water usage amongst other areas of environmental sustainability.
The scheme will be targeting customers at household level where borrowers will be able to access up to N$ 100,000 in financing, repayable in a maximum period of five years at an interest rate of up to prime minus 4,25%. The scheme is envisaged to strengthen the growing renewable energy sector.
Furthermore, the Environmental Investment Fund of Namibia will start providing concessional loans directly to borrowers. The maximum limit of this loan product is N$5 million per borrower and ring fenced for environmental related investments such as eco- tourism, sustainable farming practices, renewable energy and water efficiency technologies.