SDG Namibia One blended financing and investment platform launched
The government this week launched SDG Namibia One, a new investment platform to convene and coordinate the transition to, and exploitation of, the green hydrogen industry locally.
SDG Namibia One is a partnership between Climate Fund Managers, Invest International, and the Environmental Investment Fund of Namibia. Climate Fund Managers is owned by the Dutch Development Bank and Sanlam Infraworks, while Invest International is a financing institution owned by the Dutch Ministry of Finance.
A funding agreement for an initial development capital of EUR40 million was signed between the government and the Dutch government during the launch, while the strategy is to use the grant to catalyse additional development capital to SDG Namibia One.
According to a statement, this will subsequently derisk private capital and facilitate further investments at scale to support the development of high-quality green hydrogen assets and associated value chains. Infrastructure development is faced with challenges such as scale, risk sharing, speed, and competition.
“SDG Namibia One is therefore a blended finance solution to address such challenges, and as such aims to mobilise up to EUR1 billion of investment capacity over the next 10 months.”
The platform is designed as a programme with a multiphase approach that includes a development fund, construction fund, and operational fund.
This facilitates successful fundraising and investments in untested markets and projects, as well as attracts sponsors with limited track records of operating in a market, or innovative schemes with limited proofs of concept.
This partnership between the Dutch investors and the Namibian Government also supports capacity building as the joint venture allows the unique international expertise and investor’s relationship of the Climate Fund Managers to be harnessed while connecting the domestic expertise of the Environmental Investment Fund of Namibia and giving them exposure to sophisticated capital raising designs and deal structuring elements.
“The Environmental Investment Fund of Namibia will therefore benefit from the capacity building by being directly involved at the fund manager level from the outset, including the development of fund management, investment, fund-raising, and capital mobilization abilities. Moreover, additional skilled bandwidth and bench strength will thereby be created at the Environmental Investment Fund of Namibia and ultimately within the government.”