The Bank of Namibia took the first steps to integrating sustainability into the country’s financial system by hosting a thought leadership event themed “Leveraging Innovation for Green Finance.”
The event, held in Windhoek, brought together senior figures from the financial sector, government, and industry to discuss how innovative strategies can accelerate sustainable finance and help achieve Namibia’s ambitious net-zero targets.
During the event, the Sustainability Framework was unveiled, a strategic document aimed at embedding sustainability into the entire financial system.
The Framework, modelled after international best practices, is built on seven key principles designed to guide financial institutions, regulators, and policymakers in addressing climate-related risks while advancing low-carbon investment opportunities in the industry.
It sets a clear vision for aligning Namibia’s financial sector with global climate targets, positioning the country as a leader in sustainable finance across the Southern African region.
Governor Johannes !Gawaxab stressed the urgent need for sustainability to be integrated at every level of the financial system, noting it as essential for securing long-term economic resilience and stability.
“Namibia faces significant challenges–climate change, economic pressures, and growing inequality–that demand we make sustainability a central priority. Our future financial sector resilience and long-term growth depend on how quickly we adapt,” !Gawaxab said.
He further stated that the Sustainability Framework is not only an initiative but also a foundation for action, encouraging innovation and cross-sector collaboration to address these pressing issues.
!Gawaxab addressed the dual pressures of climate change and economic instability, highlighting that sustainability is a cornerstone for resilience and prosperity.
“As custodians of the financial system, we must integrate sustainability at every level,” he remarked. “Together, the Bank of Namibia, the Ministry of Finance and Public Enterprises, the Ministry of Environment, Forestry and Tourism and NAMFISA, and the entire financial sector must align efforts to reshape our economy, foster resilience and seize opportunities for sustainable growth.”
Heather Sibungo, Deputy Minister of Environment, Forestry, and Tourism, followed with a keynote address, outlining Namibia’s ongoing efforts to combat climate change.
“Namibia is on the path to becoming a major player in the green hydrogen market, which could generate billions in revenue and support our transition to a resilient, inclusive green economy,” said Sibungo.
The event featured three panels on sustainable finance, beginning with a discussion on Namibia’s evolving financial landscape, which covered topics such as regulatory frameworks, green capital markets, and sustainable economic policies.
The second panel focused on how FinTech innovation can drive sustainability, highlighting the
role of technology in transforming the financial sector and fostering green growth. The final panel explored the responsibility of central banks in supporting sustainability initiatives, emphasising their role in driving the transition to sustainable finance and enhancing sector resilience.
During the event, the Bank also highlighted its FinTech Innovation Regulatory Framework, an initiative that exists to support the growth of burgeoning FinTech by providing a safe and controlled environment for the testing of innovative financial solutions that are not yet governed by existing regulations.
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To further enrich the dialogue, Ms. Fundi Tshazibana, Deputy Governor of the South African Reserve Bank, presented the potential of FinTech to enhance transparency, accountability, and efficiency in green finance.
Tshazibana explained how digital tools can ensure that sustainability projects are monitored effectively, ensuring resources are allocated efficiently and equitably. Her presentation provided a clear case for how Namibia’s financial sector could leverage FinTech to strengthen the effectiveness of its green initiatives.
Meanwhile, the bank called for continued collaboration between Namibia’s public and private sectors to drive sustainable growth, by fostering strategic partnerships and dialogue to accelerate the adoption of green finance solutions.
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Source link : https://allafrica.com/stories/202410180553.html
Author : info@economist.com.na (Namibia Economist)
Publish date : 2024-10-18 15:52:08
