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Green loans available for green projects

CEO of the Environmental Investment Fund of Namibia, Benedict Libanda and CEO of the SME Bank, Tawanda Mumvuma signing for the green loans scheme. (Photograph by Hilmah Hashange)

CEO of the Environmental Investment Fund of Namibia, Benedict Libanda and CEO of the SME Bank, Tawanda Mumvuma signing for the green loans scheme. (Photograph by Hilmah Hashange)

In its effort of strengthening the growing renewable energy sector with the creation of green jobs, the SME Bank and the Environmental Investment Fund of Namibia recently launched Green loans targeting clients at household level.
The Green Soft Loan, an initiative of the Fund and the SME Bank, is a credit facility established to stimulate demand for the utilisation of green technologies mainly for communities living in rural areas but also accessible to urban clients.
The minimum loan amount is N$10,000 while N$100,000 is the maximum.The loans are repayable over a maximum period of five years at an interest rate of up to prime minus 4.25 %. The credit facility is operated through an ownership model enabling individuals to obtain loans to purchase green household appliances after an accredited supplier has furnished the prospective buyer with a firm quotation. The buyer decides where the appliance must be installed. Financing is for eco-friendly appliances such as solar water geysers, solar water pumps, solar lighting devices and other equipment that optimises water usage to boost environmental sustainabilty. Apart from the soft loans, the Fund will also be offering Green Concessional Loans to provide incentives to businesses to reduce their impact on the environment by adopting eco-friendly practices and operations. The concessional loans integrate environmental sustainabilty while promoting economic development and are offered at a minimum amount of N$1 million and a maximum of N$4 million per applicant.
The interest on these loans are also charged at a subsidised rate of up to prime minus 4.25%, however Green Concessional Loans are repayable over a maximum period of 10 years. These loans are for green investments in eco-tourism, sustainable farming , renewable energy as well as water efficiency. The Fund is the main vehicle of the government to channel financial resources to green investments and to support programmes for sustainable land management in partnership with civil society, development partners, academic institutions and the private sector.

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