Namibia’s Green Industrial Zone Proposal Shortlisted for €25 Million Funding - ISSUE #78☕

Welcome to today’s edition of Revolox Media – where we bring you the latest stories shaping Namibia and beyond.

In this issue, we spotlight the GIPF’s strengthened push toward sustainable investments, with green bonds and climate projects taking center stage. Meanwhile, the government’s suspension of the deduction code casts uncertainty over Letshego Namibia’s loan model, raising questions about financial inclusion. On the industrial front, Namibia’s Green Industrial Zone proposal has been shortlisted for €25 million in funding, marking a bold step in the country’s green transition.

Globally, the UK and US have sealed a £31 billion tech partnership, paving the way for collaboration in AI, quantum computing, and nuclear innovation. Closer to home, Standard Bank Namibia has structured a N$1 billion FX risk solution to support Swakop Uranium, reinforcing its role in safeguarding large-scale investments.

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BUSINESS & ECONOMY

GIPF Deepens Commitment to Sustainable Investments with Focus on Green Bonds and Climate Projects

The Government Institutions Pension Fund (GIPF) is expanding its investment horizon by embracing sustainability-focused opportunities, notably targeting green bonds and climate-related infrastructure.

At the Alliance for Financial Inclusion 2025 Global Policy Forum, GIPF Board Chairperson Penda Ithindi emphasized the fund’s dedication to generating meaningful socio-economic impact for Namibia through these investments.

Growing Green Bond Participation

Ithindi highlighted a sharp rise in green bond issuances in Namibia over the past five years. He noted, “The GIPF has taken up N$56 million of the N$227 million Bank Windhoek green bonds issued in June 2021,” illustrating the fund’s active role in the country’s green finance market.

The portfolio also includes sustainability bonds from the First National Bank of Namibia, aligning investments closely with national development priorities.

Infrastructure Investment for Energy Transition

Beyond bonds, GIPF has committed more than N$2.1 billion over the last nine years to infrastructure projects through local asset managers. These investments focus on Namibia’s energy transition and broader development ambitions, with approximately N$1 billion already deployed.

Ithindi underscored the social priorities of these investments—spanning housing, renewable energy, and public infrastructure—to support national growth objectives.

Source: The Namibian

Government’s Suspension of Deduction Code Threatens Letshego Namibia’s Core Loan Model

The planned government suspension of the Deduction at Source (DAS) code from 30 November 2025 is set to disrupt Letshego Namibia’s lending business, which is heavily reliant on DAS loans, institutional researcher Kara van den Heever of Simonis Storm warns.

In the 2024 financial year, Letshego originated 110,607 loans via DAS, valued at N$5.2 billion—accounting for 96% of its total loan book. A significant portion of these loans are to government employees, Namibia’s largest employer.

Risk and Structural Advantages Under Threat

Historically, the DAS system has reduced default risks by allowing automatic deductions directly from salaries before payment, giving Letshego a structural advantage. Van den Heever cautions that this advantage faces serious challenges with the planned suspension.

Two likely scenarios are emerging. First, affected clients may be moved to a debit order repayment system, increasing Letshego’s administrative burden and default risk as repayments would no longer be guaranteed by direct salary deductions. This could increase non-performing loans and force market risk repricing.

Alternatively, Letshego might absorb the administrative costs to maintain the DAS system itself. While this would preserve asset quality, it would introduce new business costs and squeeze profitability. The critical question is whether the issue lies with DAS as a system or the government’s willingness to fund its administrative expenses.

Portfolio Snapshot and Performance Amid Uncertainty

DAS loans dominate Letshego’s portfolio with a 96% share, while affordable home loans and personal loans make up 3% and 1%, respectively.

Despite the looming challenge, Letshego reported strong interim results for the six months ending June 2025, with interest income up 20.9% year-on-year to N$548 million and net profit rising 24.6% to N$249 million. These figures reflect resilience amid a difficult macroeconomic environment.

Looking Ahead

The suspension poses the most direct challenge to Letshego since its full commercial banking licence was granted in 2014. How the company navigates emerging repayment and operational risks will be crucial for its future stability and growth.

Source: The Namibian

Namibia’s Green Industrial Zone Proposal Shortlisted for €25 Million Funding

Namibia’s Environmental Investment Fund (EIF) has achieved a major milestone with its green industrial zone project shortlisted for €25 million (approximately N$625 million) in funding under the global Mitigation Action Facility (MAF).

Selected from over 500 international entries, the proposal is among 20 finalists competing for transformative climate finance support.

A Hub for Sustainable Industry

The EIF has already secured land for the development of the green industrial zone on Farm 58 in the Erongo region. Once operational, the zone is planned as a central hub for green industries including renewable energy, sustainable manufacturing, cleantech sectors, and natural resources value-chain development.

According to the EIF, the project advances activities that will significantly reduce Namibia’s carbon footprint and support climate resilience.

Rigorous Assessment and Next Steps

Submitted in July 2025, the proposal underwent a comprehensive virtual evaluation by MAF in August. The final funding decision is expected in October.

If approved, the €25 million would catalyse low-carbon industrialisation, create green jobs, and accelerate Namibia’s transition to a sustainable, climate-resilient economy.

Strategic Partnerships Driving Impact

EIF Chief Executive Benedict Libanda highlighted the project’s alignment with Namibia’s nationally determined contributions under the Paris Agreement. He described the initiative as “a bold step for Namibia” demonstrating the country’s readiness to pioneer a new industrialisation model centred on sustainability and innovation.

The project is being advanced in collaboration with the Namibia Green Hydrogen Programme and the United Nations Industrial Development Organisation, ensuring integrated support and expertise.

Source: The Namibian

TECH

UK and US Strike £31 Billion Tech Deal to Boost AI, Quantum Computing, and Nuclear Cooperation

Britain and the United States have agreed on a landmark technology pact, the “Tech Prosperity Deal,” aiming to deepen cooperation in artificial intelligence (AI), quantum computing, and civil nuclear energy. The agreement coincides with U.S. President Donald Trump's second official visit to the UK, including a ceremonial day at Windsor Castle hosted by King Charles and the royal family.

Leading U.S. technology firms, spearheaded by Microsoft, have pledged investments totalling £31 billion ($42 billion) in the UK. These investments will support the expansion of cloud infrastructure, AI research, and the construction of Britain’s largest AI supercomputer in Loughton, northeast London.

Major Tech Firms Commit to UK Growth

Microsoft alone is investing £22 billion to build AI and cloud infrastructure, partnering with UK-based firms like Nscale to deploy cutting-edge chips for AI applications in collaboration with OpenAI. Nvidia announced plans to deploy 120,000 graphics processing units across the UK, marking its largest European rollout to date.

Other companies including Google, CoreWeave, Salesforce, Scale AI, BlackRock, Oracle, and Amazon Web Services have also announced substantial investments, ranging from hundreds of millions to billions of pounds. Google’s £5 billion commitment includes a new data centre in Waltham Cross and continued support for its DeepMind AI research.

UK Government’s Push for Economic Growth

Prime Minister Keir Starmer welcomed the deal, saying it “represents a general step change” in UK-US relations that will deliver growth, security, and opportunity across the country. Facing pressure to revive the UK’s economic growth, Starmer is promoting a “light-touch” regulatory approach in technology sectors, contrasting with more interventionist EU policies.

Strengthening Transatlantic Tech Leadership

The pact includes collaborative initiatives to develop AI healthcare models, enhance quantum computing capabilities, and accelerate civil nuclear projects. These efforts aim to strengthen economic ties, scientific innovation, and energy security between the two nations.

Brad Smith, Microsoft’s president, expressed optimism about the improved relationship with the UK government, noting that such large-scale investments were previously “inconceivable” due to regulatory uncertainty.

Source: Reuters

MINING & ENERGRY

Standard Bank Namibia Structures N$1 Billion FX Risk Solution to Support Swakop Uranium

Standard Bank Namibia’s Corporate and Investment Banking division has crafted a N$1 billion foreign exchange (FX) risk management solution for Swakop Uranium, operator of the Husab Mine—one of the world’s largest uranium deposits.

As a key player in Namibia’s mining sector and a global supplier of uranium for low-carbon nuclear energy, Swakop Uranium faces critical exposure to fluctuations between the US dollar and Namibia dollar. While most of its revenue is in US dollars, approximately 80% of its operating expenses are denominated in Namibia dollars, creating considerable currency risk.

To manage this, Standard Bank’s Global Markets team structured a strip of forward contracts spanning up to 24 months. This instrument enables Swakop Uranium to lock in favourable rates, hedge against exchange rate volatility, and improve financial predictability over the medium term.

Yolande Fourie, Head of Global Markets at Standard Bank, said, “This deal showcases our ability to combine local knowledge, regional expertise, and global reach to deliver impactful solutions for our clients and Namibia’s economy.”

For Swakop Uranium, the transaction not only mitigates financial risk but also reinforces its broader contributions to Namibia. The company is a major employer supporting job creation, skills development, local procurement, and community upliftment, while generating significant government revenue from taxes and royalties.

The deal also highlights Standard Bank’s cross-border expertise, with close collaboration between its Namibia and China teams ensuring smooth negotiations with cultural and linguistic alignment.

Fourie added, “By helping Swakop Uranium manage risk and unlock sustainable growth, Standard Bank is proud to support Namibia’s journey toward a resilient and inclusive energy future.”

Source: The Brief

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