The Green Climate Fund (GCF) has approved US$140 million in catalytic financing to support industrial decarbonization and green hydrogen development in Namibia and South Africa. The funding aims to advance projects involving cleaner industrial technologies, green fuels and infrastructure while attracting additional private investment.
The approval was granted at the GCF’s 46th Board meeting in Songdo, South Korea. Of the total funding, US$56 million has been allocated to Namibia’s SDG Namibia One Fund, while South Africa’s SA-H2 Fund will receive US$84 million.
The allocation for SDG Namibia One includes US$15 million for project development and US$41 million for construction equity. The US$84 million allocated to the SA-H2 Fund will support construction equity for projects in South Africa.
The Environmental Investment Fund of Namibia (EIF) welcomed the approval, describing it as an important milestone for the country’s green industrialization ambitions. EIF highlighted its collaboration with the Development Bank of Southern Africa (DBSA) and Climate Fund Managers in mobilizing climate finance, reducing investment risks and attracting capital for large-scale projects.
The financing will support Climate Investor Three through the Southern African Industrial Decarbonization Facility. DBSA will act as the GCF Accredited Entity, overseeing programme implementation, monitoring and reporting.
The supported activities across both countries include the development of green hydrogen, green ammonia and green methanol projects, along with infrastructure for industries that face challenges in reducing carbon emissions. These investments are expected to support the transition towards cleaner industrial production and lower-emission value chains.
The financing follows a blended finance approach, combining public climate funding with private capital. The catalytic funding is intended to improve project viability, reduce investment barriers and encourage participation from commercial and institutional investors.
For Namibia, the allocation is expected to help advance green hydrogen projects from development towards construction and investment readiness, supporting industrial growth and economic diversification. In South Africa, the funding will help progress investments in cleaner industrial value chains.
The US$140 million approval marks a financing milestone for Southern Africa’s energy transition, supporting both countries in advancing green industrial projects and mobilizing further investment in low-carbon technologies.
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