Locations26-28 February 2025, Walvis Bay, Erongo Region
BIOFIN Namibia has officially launched its inaugural capacity development event, held from 26-28 February 2025 in Walvis Bay, Erongo Region, under the theme: "Mainstreaming Green Finance: Capacity Building for Biodiversity Integration in Namibia’s Private and Financial Sector." This milestone event represents a significant advancement in aligning Namibia’s financial and private sectors with global sustainability objectives, fostering responsible investment practices, and enhancing nature-positive economic growth.
The launch of BIOFIN in Namibia signifies a transformative shift toward sustainable finance. As the nation advances its agenda for biodiversity conservation, financial institutions and policy makers are expected to adopt a more proactive stance in the integrating biodiversity considerations into investment portfolios, credit risk assessments and financial product development. This initiative will not only reinforce the resilience of Namibia’s natural ecosystems but also position the country to navigate merging global environmental and economic challenges.
The training converged together 17 participants (10 women and 7 men), representing a diverse cross-section of stakeholders from both public and private financial institutions which included the Bank of Namibia (BoN), Bank Windhoek, Agricultural Bank of Namibia (AgriBank), Namibia Financial Institutions Supervisory Authority (NAMFISA), Nedbank, Development Bank of Namibia (DBN), Government Institutions Pension Fund (GIPF), Environmental Investment Fund of Namibia (EIF), Triple Capital, and the Ministry of Environment, Forestry and Tourism (MEFT). The workshop provided an in-depth exploration of the BIOFIN methodology and key thematic areas such as Namibia’s biodiversity conservation and financing landscape, financial solutions for biodiversity integration, the role of financial institutions in greening the banking system, policy mechanisms to mainstream biodiversity finance, and nature-related financial risks and opportunities.
Biodiversity conservation in Namibia is world renowned, with numerous stakeholders such as the banking institutions, together with conservation organizations, and government agencies actively engaged in safeguarding the nation's rich natural heritage. However, a significant funding gap persists although it remains difficult to measure the biodiversity funding gap accurately.
<em>Figure 1 Toini Amutenya from Triple Capital</em>
A baseline study done by Louise Brown and Toini Amutenya (2024) indicates that, between 2013 and 2022, international donor funding for biodiversity in Namibia averaged approximately US$26 million annually, while government expenditure averaged US$40 million per year. Despite these contributions, the study emphasizes the necessity for increased and sustained financial support to effectively bridge the existing biodiversity finance gap in the country.
Through the BIOFIN methodology, specifically the Biodiversity and Expenditure Review (BER); clarity will be provided on the required funding gap for biodiversity in Namibia.
<em>Figure 2 Carel-David Rautenbach (L) and Bianca Janse van Vuuren (R) from Bank Windhoek</em>
With BIOFIN now fully operational in Namibia, stakeholders are encouraged to maintain active engagement in shaping a financial landscape that prioritizes both economic prosperity and ecological integrity benefits.
Why should the finance and private sectors engage in biodiversity financing?
This question was posed by the stakeholder representatives as soon as the invitation to this training was dispatched.
The response lies in their dual roles as regulators and innovators in financial product development. By integrating biodiversity considerations into financial policies, the sector can drive meaningful change, ensuring long-term economic and ecological stability. A key takeaway from the discussions was the necessity of breaking silos and fostering cross-sectoral collaboration. The financial sector’s sustainability efforts must complement the scientific community’s work on biodiversity conservation, ensuring that finance and environmental objectives are mutually reinforcing.
The establishment of a Green Finance Working Group was also an objective of this training. This working group would serve as a collaborative platform for financial institutions, regulators, and conservation experts to coordinate efforts, share knowledge, and drive the mainstreaming of biodiversity finance. The formation of such an initiative would democratize the decision-making process, ensuring inclusivity and coherence in biodiversity financing strategies. From the discussions and stakeholder perspectives, this is an entry point to have a forum to engage with the sector on issues of biodiversity and coordination for the purposes of resources mobilisation.
Namibia’s financial sector has made strides in incorporating environmental, social, and governance (ESG) considerations into its operations. However, a prevailing challenge has been the tendency to equate the "E" in ESG solely with climate change, neglecting critical aspects such as biodiversity and land degradation. As Bruno Mweemba, BIOFIN Africa Technical Advisor, emphasized, environmental compliance and due diligence measures within financial institutions must align with science-based targets. There is an urgent need for banks and financial entities to extend their focus beyond carbon neutrality and integrate biodiversity conservation into risk management frameworks and investment decision-making processes.
The introduction of global taxonomies, such as the EU Taxonomy, was identified as an essential step in establishing standardized classification frameworks for sustainable finance. Such frameworks provide clear criteria for identifying and categorizing environmentally sustainable activities, ensuring that financial flows are directed toward initiatives with genuine biodiversity and climate however as this all guidelines, frameworks and standards; these must be translated and responsive to the country context or else can lead to negative unintended consequences.
<em>Figure 3 Saara Mukumangeni-Kashaka from BON (L) and Natalia Nakashona from MEFT (R)</em>
Reflecting on the evolution of green finance in Namibia, Mrs. Sara Kashaka from the Central Bank of Namibia highlighted the central bank’s sustainability framework, established in October 2024, as a pivotal step toward institutionalizing sustainability principles and promoting the greening of the financial system. Namibia has already witnessed the successful launch of several sustainable finance initiatives, including the Environmental Investment Fund, which has mobilized over N$3.6 billion, and various green and sustainability bonds issued by Bank Windhoek, Standard Bank Namibia, and RMB Namibia, collectively amounting to N$980 million. Additionally, Nedbank’s ‘Go Green Fund’ has played a crucial role in financing environmentally responsible projects.
Namibia's transition to a green economy presents vast opportunities. According to the African Development Bank (2023), an estimated N$10 billion annually is required to achieve Namibia’s green growth objectives, including generating 70% of its energy from renewable sources and reducing greenhouse gas emissions by 91% compared to a business-as-usual trajectory by 2030. Given that over 70% of Namibia’s population relies on climate-sensitive sectors such as agriculture and tourism, the increasing frequency and intensity of climate shocks threaten both environmental and economic stability.
The BIOFIN training underscored the urgent need to accelerate the adoption of innovative financial mechanisms, such as green bonds and sustainability-linked loans, to channel investments into projects that support both climate change mitigation and adaptation.
In his concluding remarks, Bruno Mweemba stressed the importance of swift regulatory action and government support in advancing biodiversity financing considerations. "The more time we take, the more challenges we will face. We need to be proactive so that when the key players are fully engaged, we are all playing the same game," he iterated.
Figure 4 Bruno Mweemba, National Coordinator for Africa (standing) addressing participants
Reflecting on the overall impact of the training, participants expressed deep appreciation for the opportunity to contribute to this crucial dialogue. Participants emphasized their commitment to relaying key takeaways to his organization and ensuring ongoing institutional buy-in for similar engagements. As Namibia continues its journey toward sustainable finance, BIOFIN will remain a catalyst for fostering a financial ecosystem that harmonizes economic development with environmental stewardship.
Read more: Unlocking green finance: Namibia’s financial sector gears up for biodiversity conservation | BIOFIN
