12 Friday 12 February 2021 NEW ERA

Changing the way we use our environment … EIF celebrates 9 years of inclusive, sustainable development

AMIBIA gained political independence in 1990 and adopted a national constitutionN that declared natural resource protection and sustainable utilisation thereof a key to development, making it the !rst country in the world to do so. "e Environmental Investment Fund of (EIF) is a fund created by Act 13 of 2001 of the Parliament of the Republic of Namibia with the overall aim of continuing the great legacy by supporting individuals, projects and communities that ensure the sustainable use of natural resources. "e EIF mission is to promote the sustainable economic development of Namibia through investment in and promotion of activities and projects that protect separately or as sectoral issues. biological diversity and and maintain the natural and Created as a statutory and ecological life-support environmental resources of the independent entity outside the functions. country. public service, the EIF performs In 1992, at the height of rapid functions linked to sustainable During the last nine years, the global industrialisation and economic development, including Environmental Investment Fund its associated natural resource raising local revenue through the of Namibia has proved to be depletion, driven by developed introduction of statutory fees and an important organisation that countries ‘economic quests, His levies, making it more than just a is dynamic and signi!cant to Excellency Dr Sam Nujoma fund for !nancing conservation sustainable development in the presented the Namibia Green activities. country. Plan to the United Nations Its ultimate objective is to Since its inception, the fund Conference on Environment provide sustainable financing continues to innovate and change and Development (UNCED) at to the poorest sectors of society, the way we use environment- the Rio World Summit in Rio enabling them to pursue based resources in Namibia, de Janeiro, Brazil, again the !rst livelihoods from their natural driving energy efficiency and country to do so at the time. resources while reducing the renewable energy growth across It appeared to be a very impact of unsustainable economic the country and supporting strategic gesture from a new practices that degrade Namibia’s a new era for environment- sovereign state, but the history fragile environment and waste its based enterprises, such as waste behind the development of the natural resources. management, nature-based document proved to be more far- adequately in the protection of of the Ministry of Environment "e !rst board of directors was tourism, sustainable agriculture, reaching than initially imagined. its environment. The colonial and Tourism (MET), set about appointed by the then Minister of and unlocking value chains for Upon his return from an almost administration had not created to develop an entity independent Environment and Tourism, Hon. inclusive growth and job creation. three-decade-long exile in 1990, institutions to cater for that. "e of government but which Netumbo Nandi-Ndaitwah, in The fund is driven by the Dr Sam Nujoma had noticed government did not have the would !t into the government’s 2011. In August 2011, the board passion to ensure sustainability the environment debt that was resources required to ful!l all development policies and of directors of the fund appointed in its developmental matrix. "e le# behind by the South African the actions necessary to reach programs. Mr Benedict Libanda as the fund’s past achievements provide colonial regime. In his own words the objectives and commitments In December 2001, a#er a series institution’s !rst CEO. food for thought on how we can at the time, the statesman could made in the Green Plan. of consultative meetings, with a A#er a consultative process, meet the targets in our national barely recognise his homestead. A consultative process was broad range of stakeholders and which laid the foundations for development plans, sustainable “I could barely recognise my started to address the funding gap, partners, including government, the level of autonomy, operations development goals and exceed in homestead, as deforestation had which the state conceded should private sector, academia, non- and initial capitalisation of the the emerging Vision 2030 agenda. taken its toll on the once lush be covered by alternative sources governmental organisations and EIF, the institution was o%cially "e fund leveraged on N$105 village environment”. to complement government’s community-based groups, the launched on 13 February 2012 by million that it received from Widespread environmental resources. Environmental Investment Fund former President of the Republic treasury to successfully mobilise degradation exerted pressure on National and sector-level Act was passed by Parliament of of Namibia, His Excellency Dr more than N$1.2 billion of climate communal areas as well as inland consultation ensued, leading the Republic of Namibia, paving Hi!kepunye Pohamba. change investment in Namibia. and coastal areas, stemming from to the idea of establishing an the way for the creation of the "e overall objectives of the "is amount is a combination close to 100 years of diamond and environmental trust fund, which Environmental Investment Fund EIF are to mobilise funding and of resources accessed through precious metal extraction. would be established by an Act of Namibia (EIF). allocating this income to activities multilateral and Development In 1991, the President of the Parliament of Namibia Constraints and threats such as and projects that promote the Finance Institutions. "e Green commissioned the preparation with the purposes of raising reservations and resistance from sustainable use and efficient Climate Fund has financially of Green Plan, funds within Namibia and from certain public sector agencies and management of natural resources supported the fund with an a document that outlined the international sources. "e funds competition from other funds for the bene!t of all Namibians: amount totalling N$560 million country’s main environmental realised would be invested in were negated with the eventual a)Procure funds from in grants for climate change challenges and speci!ed actions lasting instruments yielding consensus among stakeholders international donors for the adaptation interventions in required to address them stable returns that could then that economic development maintenance of an endowment Namibia. and set Namibia on the path be used to finance projects and environmental protection that will generate a permanent I n 2 0 1 8 , t h e F r e n c h of sustainability. It was the and activities for the prudent were integrally linked. With stream of income, and Development Agency invested environmental degradation of management of natural resources agriculture, industrial !shing and b) Procure funds within Namibia N$800 million through the these communal areas and the and environmental protection. mining identi!ed as key natural on an annual basis from Sustainable Utilisation of inland and coastal areas from a The government’s National resource-based industries and conservation fees and levies. Natural Resources and Energy century of mining that prompted Development Plan 1 (NDP1), the transport and manufacturing These funds will be used Financing programme, a three- the President to commission the approved by Cabinet in 1995, sectors gathering pace, sustaining for making investments year initiative dedicated to preparation of the Namibian covered the period between this growth proved the biggest in the protection and promoting a new renewable Green Plan in 1992 (Brown ed. 1996 and 2000 - and made challenge. It was also recognised wise management of the energy !nance programme in 1992). provisions for the development that the issues of poverty, the environment, promoting Namibia. It is estimated that about Two realities emerged during the of an Environmental Investment environment and sustainable sustainable use of natural 238 000 people have bene!ted and development process of the Green Fund as a task. "e Directorate development in Namibia were resources for economic continue to bene!t from di$erent Plan; Namibia had not invested of Environmental A$airs (DEA) related and could not be viewed development, and conserving projects. Friday 12 February 2021 NEW ERA 13

Building capacity through empowerment APACITY building has been the Namibia mobilised over N$1.21 billion of people bene#ting from climate change boreholes for household, livestock, and cornerstone of the fund. !e board from multilateral and development #nance interventions is estimated to be more than 200 wildlife water provision. of directors approved a policy to institutions. As part of the above amount, 000, both direct in indirect bene#ciaries. In The above intervention demonstrates thatC outcome, taking into consideration a credit facility worth N$734.1 million addition, about 950 employment opportunities the changing way we use natural resources institutional and individual capacity aspects. A was established in collaboration with the have been created in the process, bene#ting in Namibia, driving energy e%ciency and total number of nine sta" members have been French Development Agency through the mostly youth and females. During the state renewable energy growth across the country supported through our bursary programme Sustainable Utilisation of Natural Resources of emergency on the accounts of drought in and supporting a new era for environmental to pursue their postgraduate studies, while 36 and Energy Finance (SUNREF) Programme 2019, the fund responded swi$ly to the call based enterprises such as waste management, bursaries were awarded to young Namibians to support entrepreneurs in the areas of by His Excellency, , President nature-based tourism, sustainable agriculture, in the areas of natural resource management, renewable energy, sustainable agriculture and of the Republic of Namibia by drilling 120 value chain addition, etc. energy, law, oceanography, water, climate tourism development. change, etc. It should be noted that Despite undeniable achievements in the these funds are availed directly past years of operations, the Fund remains to commercial banks (as a challenged to meet the #nancial demands for loan) while these banks o"er environmentally based projects. Securing a loans in turn to entrepreneurs sustained funding base remains one of the at concessional rates. To biggest challenges, and the fund continues date, Bank project to devise innovative ways of expanding approval and portfolio totals the resource base. !e situation presents a now equate to N$137 million major challenge for the Fund to e"ectively with the recent addition of implement its mandates. the N$99 million approval !e board was quick to note the #nancial of the Metdicci 5 MW Solar gap challenge and has prioritised to expedite Development as well as the implementation of environmental levies the Okatope 5 MW Solar as a measure to #ll up the gap. !e fund Development. has a limited resource base and barring the !e FNB projects approved ongoing plans to sustainably capitalise the total equates to N$100 fund through the collection of environmental million with the #nancing of levies as provided for in the Act, current state a portfolio of roo$op solar capitalisation has fallen well short of the projects whilst Nedbank is #nancing demand. working on a diverse pipeline !e strong support enjoyed from the board of projects across various of directors and the Ministry of Environment sectors. and Tourism as the line ministry are of The current SUNREF immense value to the fund in achieving its registered financing milestones. With continued support, the application pipeline as of fund can only grow stronger and make January 2020 adds up to bigger impacts nationally. !e Fund has set N$617 million. Energy and a remarkable record with the GCF as the agriculture projects represent institution counts among a handful of African the majority of the SUNREF direct access entities accredited to the GCF. total pipeline and portfolio In addition, the fund is the #rst-ever direct with only a small portion of access entity to securing funding through tourism projects. both Enhance Direct Access (EDA) and !e former has prompted Simpli#ed Approval Process (SAP) modalities the fund to participate in the and accessed the #rst readiness grant. application for the French With eminent climate challenges facing Development Agency’s Namibia, including the last three years multi-country ‘Transforming of a devastating drought, the fund is still Financial Systems for Climate’ committed to supporting the government program via the Green in addressing climate change issues by Climate Fund, an application introducing and looking at a long-term that was approved in October solution. 2018 from which Namibia will However, adequate and predictable bene#t US$50 million. domestic funding is required to ensure !rough di"erent funding the fund implements its mandates streams, the Environmental e"ectively. !erefore, the implementation Investment Fund of Namibia of environmental taxes to capitalise the fund has so far approved renewable is of utmost importance. energy projects with a Throughout the past three years, the combined output amounting Environmental Investment Fund of to 15 MW, while the number 14 Friday 12 February 2021 NEW ERA

EIF making a meaningful impact Impact at glance Omundaungilo constituencies in the !e fund is one of the few state-owned Ohangwena region was identi"ed as a Vigil mechanisms enterprises that has successfully blended critical priority. !e following actions were !e fund has in place a whistle-blower policy a financing approach that takes into undertaken: to support the code of business ethics. !is consideration the three main pillars of · An existing monitoring borehole policy documents the fund’s commitment to sustainable development, which are social, (WWW201636) was converted to a water maintaining an open work environment in economic and environmental consideration. supply borehole for immediate impact and which employees, consultants and contractors As evident below, these have been achieved water supply to about 15 000 of the a#ected are able to report instances of unethical or by implementing actions towards livelihood communities. undesirable conduct, actual or suspected protection, "nancing of sustainable business · !e borehole, located in the Epembe fraud or any violation of company’s code of concepts, and ensuring environmental constituency but proximity to business ethics at a signi"cantly senior level protection. the Oshikunde and Omundaungilo without fear of intimidation or retaliation. constituencies, was then used to supply The ethics committee comprises four Introduction of environmental taxes to all 3 constituencies within a bu#er of members, including the company secretary, !e board managed to secure a deal with about 10 km radius. internal auditor, chief "nancial o&cer and the Ministry of Finance, where the Fund · !e recommended borehole has a high a senior functional head. !e committee receives 30% of all environmental taxes yield > 12m3/hour and the water quality is authorised by the board of directors of on incandescent bulbs, tyres and carbon is very good (category B), and a strong the fund for the purpose of receiving all emissions. Furthermore, Cabinet approved solar system (heavy duty) was installed complaints under the policy and in ensuring a 100% allocation of all environmental taxes to supply as many villages in the vicinity appropriate action. The concern can be on plastic bags to the Fund. To date, the and surrounding areas. reported by sending an e-mail message at Fund received more than N$29 million in the dedicated address. Individuals can also environmental taxes from the Ministry of Renewable energy catalysing Photo: Nampa raise their concerns directly to the CEO or the Finance. community resilience At the helm… EIF CEO Bennedict Libanda. chairman of the Audit Committee of the fund. A total of almost N$21 million was handed Any allegations that fall within the scope of the Contribution to the Namibia over to George Mukoya and Muduvu reliant on ecosystem goods and services to concerns identi"ed are investigated and dealt drought relief efforts Nyangana conservancies, Sorri Sorris manage their natural resources sustainably. with appropriately. Further, during the year, In 2019, the Fund played an important role Conservancy, Sheya Shuushona Conservancy Governance and strategic no individual was denied access to the Audit in supporting the drought relief e#orts in the and Omatendeka Conservancy to establish management Committee for reporting concerns, if any. country. Several initiatives were introduced four solar power plants with a minimum Project administration and successfully implemented. Some of the capacity of 100KW to power lodges, campsites Strategic business plan major ones include: and other enterprise development activities. The fund has groomed experienced These conservancies will each generate !e board of directors of the fund have personnel in running and implementing worked hard to build a business model based · Ohangwena Water Provision Initiative in the about N$400 000 per annum from the sale of projects, in supporting and back-stopping on making commercially viable investments Epembe and Oshikunde constituencies; electricity; such proceeds will be ring-fenced grantees, in providing on-the-job training in green projects while mobilising other · Drilling of 120 boreholes under the through a local level managed fund to "nance to less experienced grantees, etc. and public and private capital. !e basis was Enhanced Direct Access Project, and climate change adaptation actions. through capacity building. A number of done through the development of a Business · Promotion of conservation agriculture as government projects and programmes Strategy for the fund (2018-2022). The a drought-resilient farming approach Ecosystem-based adaptation are being implemented through the Fund. !e fund continues to support large-scale business plan is essentially about working They include the United Nations Small landscapes through its ecosystem-based smarter and leveraging our successes to better Grants Programme, Game Product Trust Mitigation of drought in adaptation approach. It is calculated that more anticipate "nancial $ows and respond to Fund (GPTF), SUNREF Programme, Land Ohangwena than 230 000 square kilometres of the land mass them strategically. We have streamlined our and Biodiversity Programme, etc. Beyond portfolio and business processes and shi%ed In response to the state of emergency that are being "nancially supported to implement government programmes, the Fund works our focus towards immediate gains with high was declared on drought in 2019, the supply actions on biodiversity conservation and with international institutions such as the impact while noting the importance of long- of water to the Epembe, Oshikunde and livelihood. !ese interventions continue to Development Bank of South Africa, World enhance capacities of rural communities term sustainability of our actions. Bank, Africa Development Bank, etc.

Community Conservation Fund of major challenge for the fund to e#ectively $agship project "nanced by both EIF and Namibia (CCFN), World Wildlife Fund implement its mandates. !e board was quick SGP wins “Climate Excellence Innovation Coronavirus Namibia, United Nations Development to note the "nancial gap challenge and has Award”. Programme (UNDP), NedBank Namibia, prioritised to expedite the implementation - 2014: Won Best Innovative partnership Namibia Nature Foundation, B2Gold, of environmental levies as a measure to "ll awards for SME Bank Green So% Loans relief package Integrated Rural Development and Nature up the gap. scheme at GSF Awards Conservation (IRDNC), Namibia Chamber - 2014: April: EIF and SME Bank won a joint On the 5th May 2020, the Ministry of of Environment, TNC, Deutsche Gesellscha% International recognition award for “Innovative "nancing product Environment, Forestry and Tourism (MEFT) für Internationale Zusammenarbeit (GIZ) !e fund has, in the last three years, won at Sustainable Finance Awards, Karlsruhe, launched the Conservation Relief, Recovery GmbH, KfW Development Bank, Tourism and obtained international acclaim among Germany. and Resilient Facility (Covid-19 facility). Supporting Conservation Trust (TOSCO). industry institutions for its innovation and - 2016 April: the Fund won Best Annual !e facility aims to provide "nancial relief To date, the CRRF Facility had project "nancing success in Climate-Change Report at the African Excellence Awards, to CBNRM institutions affected by the disbursed more than N$10 million to the Resilient Livelihoods 2020, winning the Cape Town, South Africa (Best Annual pandemic. 86 conservancies, community forests and Global Sustainable Finance award for best Report 2015 at Africa Excellence Awards) A task team has been appointed by the CBNRM entities. !e CRRRF is administered innovation in June 2019, and then claiming - 2019: Best Innovation in Financial Services MEFT to ensure coordination in resource by the EIF. !e Environmental Investment the runner-up prize to Bangladesh in the to recognise success in Environmental mobilisation and funds disbursal. Fund of Namibia (EIF) and the United Nations category, Best Innovation in Sustainable levies ring-fenced for environmental !e objective of the facility is to ensure Development Programme (UNDP) pledged Financial Products and Services for the levies, Karlsruhe, Germany the continuation of anti-poaching activities, N$6 million. introduction of environmental levies as - 2020: Won Outstanding Sustainable mitigation of human-wildlife conflict, a sustainable "nancing mechanism. !e Project Financing recognising its success preservation of natural resources and the Challenges ceremony was held in Karlsruhe, Germany, in "nancing Climate-Change Resilient management of wildlife. Despite undeniable achievements in the by the Global Sustainable Finance Network, Livelihoods, Karlsruhe, Germany !e underlying goal is to ensure CBNRM three years of operations, the fund remains of which the fund is a member. entities are able to weather the storm as a challenged to meet the "nancial demands The Environmental Investment Fund of result of the pandemic, and that they are in for environment-based projects. Securing Awards and recognitions the fund has Namibia continues to strive to be a recognised a position to recover as quickly as possible in a sustained funding base remains one of received between 2011-2020: leader in the development and application a post-Covid-19 era. the biggest challenges, and the Foundation of innovative financing mechanisms to Financial relief is provided in equal continues to devise innovative ways of - 2012: Won Innovative "nancing award at support environmentally and technologically quarters for a period of up to one year. !e expanding the resource base. Global Finance Awards in Germany, sound development in Namibia. !e Fund "rst quarter started in May 2020 and the "nal To place this scenario into context, the fund 2012, Windhoek Show – Top Exhibitor, is appreciative of the e#ort of government, quarter is April 2021. received more than N$140 million worth of 1st prize. board of directors, civil society various Key partners participating in the facility loan applications, of which 14% were funded. - 2013 June: Sustainable Finance Awards, stakeholders and the Namibian people for are the Environmental Investment Fund Furthermore, more than N$200 million worth 1st prize for “Most Innovative Financing trusting it with the tremendous task of of Namibia (EIF), Namibia Association of of grant applications were received, with only product”, Karlsruhe, Germany. ensuring environmental sustainability is at CBNRM Support Organisations (NACSO), 5% being funded. !e situation presents a - 2014 February: “Ezy-Stove Project” a the core of our development.