Cooperation witn Namibia based on loans: AFD Group [fr]
The AFD Group is made up of the Agence française de développement (AFD) and PROPARCO.
As a public financial institution, AFD is involved in financing development, to support projects in a perspective of sustainable development. For this purpose, AFD has financial tools for public, parastatal and private sectors. AFD is also involved in intellectual production in the development of research studies reinforced through funds for studies that make the institution significant in international debates on developmental issues.
PROPARCO is a development funding institution jointly owned by AFD and by both public and private shareholders from northern and southern parts. PROPARCO’s mission is to be a catalyst for private investment in developing countries with targets growth and sustainable development. PROPARCO is offering a wide range of financial products tailored to the specific needs of private investors in developing countries (loans, equity, quasi-equity and guarantees).
AFD in Namibia
Both AFD and PROPARCO’s monitoring is provided from the regional office based in Johannesburg. The AFD’s regional mandate covers South Africa, Namibia, Botswana, Zambia, Zimbabwe, Malawi, Lesotho and Angola. While PROPARCO has been given a broader mandate that includes in addition Mozambique, Swaziland, la Réunion, Madagascar, Mauritius and Seychelles. AFD enhances the issues relating to sustainable development and regional integration in a coordinating way with key institutional donors including South Africans ones.
The AFD Group has been given authorisation to operate in Namibia since independence, its projects are so far focused in infrastructure, environment and SMEs sectors:
- Two loans were granted to Namibia: €3.5 million in 1996 for the supply of drinking water in Windhoek, and €5.3 million in 1998 to double the electricity interconnection with South Africa,
- In 2009, AFD co-financed with BEI and KfW, the €35 million Caprivi project, a regional interconnection linking the electricity networks of Namibia to Zambia,
- In April 2011, AFD and FNB Namibia (First National Bank) signed an agreement to benefit small and medium enterprises (SME). This last has led to assist 80 SMEs in their establishment and growth phases. In April 2014, the renewal of an ARIZ portfolio guarantee (risk sharing facility) was signed, reaffirming thereby their support for SMEs,
- From 2005 to 2010, AFD has provided the financial management of the French Global Environment Facility (FFEM)’s projects in supporting the implementation of participatory management policy of natural resources promoted by the Ministry of Environment and Tourism through a grant of €1,4 million to the network of conservancies, which aims to restoring and managing of plant and animal biodiversity for the benefit of the development of local communities through tourism and sustainable hunting.
AFD is working with local institutions in the implementation of the Sustainable Use of Resources and Energy Finance (SUNREF) program to encourage small and medium scale projects in the fields of renewable energy, energy efficiency, ecotourism, sustainable agriculture and protection of biodiversity.
Other AFD interventions in Namibia are at the identification stage, particularly in the energy sector. In addition, PROPARCO, which is currently operating in Namibia in the field of education with Trustco Group, wants to get involved in the renewable energy sector.
Updated on 10 August 2016