Potential investors interested in participating in the much-discussed green hydrogen project arrived in Namibia to discuss the next steps with the government.
The green hydrogen project, which would be a Namibian center of synthetic energy, has so far received roughly N$700 million from Germany, according to presidential economic adviser James Mnuype, who spoke to Desert Radio 95.3 FM yesterday.
He said that the government intends to use a portion of the funds in the first quarter of this year and that the project is a Harambee Prosperity Plan II (HPPII) effort that seeks to work with the private sector.
According to Mnuype, the project has the potential to attract over a billion dollars in investment.
“Green hydrogen is sometimes referred to as a “project,” although it is merely an endeavor to provide Namibia with a future source of synthetic energy. It is a project with enormous promise for the country, with the ability to provide much-needed employment and economic benefits “he stated
According to Mnuype, the government has begun on a unique endeavor by examining global trends, participating in hydrogen diplomacy, and evaluating what draws foreign direct investment.
It is not a complicated undertaking, according to Mnyupe, because it simply comprises installing large-scale solar projects and creating synthetic fuel using solar energy and desalinated water.
In 2021, the idea was presented across the world as a strategic bid, and it got nine offers from six different developers.
He stated that the government has received a flood of interest from possible investors, and that extensive discussions are being conducted to assure the project’s success.
“Namibia will attempt to see if we can’t leverage our vast world-class solar resource to become energy independent,” Mnuype added, noting that the country would have to be reimagined because it is a net importer of practically everything, including power.
“We import 70% of our electricity in drought-stricken areas. Could you envisage a scenario in which we cease importing, NamPower saves N$3 billion on electricity purchases, and we become net electricity exporters? Many Namibians have never envisaged such a scenario, but that is exactly what we are attempting to achieve “Mnyupe said.
He also stated that the government is working on a comprehensive plan to address poverty and inequality in the country by adopting a multi-sectoral approach to the problem.
He claims Namibia lags behind its neighbors South Africa and Botswana in terms of immunization rates.
Mnuype stated, “That is a big element of our economic revival.”
The public has reacted negatively to the green hydrogen craze, believing that locals are being overlooked for potential chances.
According to national records from last year, the government planned to raise numerous sustainability bonds to fund the green hydrogen effort.
This year, these are expected to be released.
As a result, Namibia will join the “Build Back Better” bandwagon.
The Building Back a Better World effort is a June 2021 project by a group of seven countries, mostly pushed by the International Monetary Fund on finance, which is encouraging countries and businesses to participate in environmentally beneficial projects and a green and sustainable economy.
This appeal to rebuild better is accompanied by low-cost financing, which is mostly obtained through the issue of green and sustainability bonds.
These bonds are financial financing vehicles that are primarily used to support green and sustainable initiatives, thus their name, and are less expensive than traditional bonds.
Despite their popularity in recent years, their issuance in Namibia’s capital market is still a drop in the ocean.
According to a document viewed by The Namibian last year, Namibia should be able to issue the aforementioned sustainable bond by the fourth quarter of 2022.
Finance minister Iipumbu Shiimi also mentioned a prospective issue in an interview with Bloomberg last year but did not specify how much the government is aiming to raise.
The state is heavily in debt and is looking into any and all options for obtaining low-cost capital.
According to the paper, the government plans to construct projects worth over N$64 billion, some of which would be funded through private partnership agreements.
That’s about half of the total national debt.
