Banks’ role in building a sustainable financial future
One of a commercial bank’s key roles is to manage liquidity and ensure funding access that supports financial stability and growth. In today’s evolving financial landscape, banks must also serve as enablers of sustainable development, recognising that public sector funding alone cannot meet national goals.To address this gap, innovative financing tools such as green, social, and sustainability bonds are gaining importance. These thematic instruments require greater transparency but offer powerful means to fund projects with environmental and social benefits.
Bank Windhoek acknowledges that Namibia’s financial resilience depends on embedding sustainability into core banking practices. As a net carbon sink, the country remains vulnerable to climate shocks, and directing capital toward sustainable initiatives is crucial.
However, Namibia’s sustainable finance ecosystem remains nascent. While thematic instruments are growing in popularity, uptake is hindered by higher costs and limited access to concessional finance, especially for the private sector. Most transformational projects require blended financing, which combines public and private capital to improve feasibility.
Leading the way
Despite these challenges, Bank Windhoek is leading the way. As Namibia’s first issuer of green and sustainability bonds, the Bank has successfully mobilised private capital for impactful projects. These achievements are rooted in close collaboration between Treasury and business units, resulting in initiatives like the Sustainability Loan, now a core offering aligned with national development goals.
The Treasury function plays a central role, identifying opportunities, mobilising capital, and guiding internal strategy to support sustainable finance. By aligning funding decisions with strategic objectives, Treasury can help shape a more resilient and forward-looking Namibian economy.
Globally, sustainable debt issuance reached USD 1.49 trillion in 2024, yet Africa contributed less than 1%. To close this gap, the continent needs supportive regulation, targeted incentives, and strong public-private collaboration. In Namibia, aligning private sector ambition with government planning will unlock finance for critical projects often overlooked by conventional investors.
Collaboration is key. By forming strategic partnerships and accessing concessional funding through multilateral alliances and government engagement, Namibia can scale green infrastructure and drive inclusive development.
At Bank Windhoek, we are committed to advancing this transformation—building a sustainable economy, one possibility at a time.
* Claire Hobbs is Bank Windhoek’s Chief Treasurer.