WINDHOEK – The government yesterday took the lead to provide funds for the establishment of a Soft Green Loan Scheme between the Environmental Investment Fund and the SME Bank to support conservation activities and environmentally sustainable activities by signing a Memorandum of Understanding (MoU).
Deputy Minister of Trade and Industry, Tjekero Tweya, said the SME Bank has been identified as the financial intermediary partner to effectively support activities under the Soft Green Loan Scheme. “The scheme will promote green investment projects, which support environmental initiatives including but not limited to renewable energy, energy efficiency, water efficiency, waste management and other resource use efficiencies, he said. The scheme will target clients at household level and borrowers will be able to access up to N$100 000 in financing that is repayable over a maximum period of five years at an interest rate of up to prime minus 4.25 percent, Tweya said.
He also highlighted the fact that desertification affects millions of people on the continent, resulting in major losses in income and 6 million hectares of productive land each year. He added that Namibia has taken the lead through the environmental investment fund under the green plan, to provide funds for projects geared towards the protection of the environment. “The SME Bank will implement the scheme so that the Ministry of Environment and Tourism can achieve its core mandate of supporting conservation activities and environmentally sustainable activities,” he told a full-house gathering during the 11th Session of the United Nations Conference of Parties in Windhoek yesterday.
“The scheme will provide soft loans to deserving SME’s, which will promote projects geared towards environmental protection. The scheme will be charged subsidized interest rate loans unlike most of the traditional commercial banks and the SME Bank will assume full credit risk for these loans,” he said. Tweya continued that the Ministry of Trade and Industry has ambitious plans to increase the capacity of the SME Bank and will therefore be the majority shareholder in the institution. “With this MoU and our enhanced partnership, we hope to achieve our vision of an environmentally secure Namibia within the National Development Plan (NDP4) goals we have set for ourselves,” he remarked. He also noted that the signing is a timely response to the challenges of the 21st century, which he described as an era where the concept and content of competitiveness is given new meaning.
“In collaboration you gain strength,” he said. Environment and Tourism Minister and COP11 president, Uahekua Herunga, said the business forum is a platform that aggressively engages the private sector to actively participate and address challenges related to desertification, land degradation and drought. “I am happy to announce that the Environmental Investment Fund, will be the main vehicle of government to channel financial resources to support the programmes on sustainable land management together with civil society, development partners, academic institutions and the private sector,” added Tweya, commending the bold step undertaken by the trade and industry ministry. He also noted that the fund should develop systems and different financial delivery mechanisms to drive forward the implementation of identified programmes under the Business Forum.
By Fifi Rhodes