By Koviao Matuzee
Namibian businesses seeking funding are being urged to move beyond sustainability promises and prove that they can manage environmental, social and governance (ESG) risks, as financiers increasingly scrutinize the financial consequences of climate change, weak controls and operational disruptions.
The message emerged at the Namibia Sustainable Finance Alliance (NSFA) workshop held recently, where experts said businesses must demonstrate credible financial plans, accountable leadership and measurable results to become investment-ready.
Mekondjo Erastus of Monasa Advisory & Associates said an ESG commitment was only the beginning of the investment process, not proof that a business deserved funding.
“Before you go to an investor, can you show a financial case at all? They understand your material risks. Who is accountable, that the plan is funded and all the results are something someone can verify?” Erastus asked.
Erastus also added that companies must show how sustainability risks could affect their revenue, operating costs, production, and ability to repay loans.
Water shortages, unreliable energy supplies, workplace safety incidents, community disputes, and weak governance can all undermine a project’s financial viability.
Namibia’s current foot-and-mouth disease outbreak illustrates how quickly such risks can translate into financial losses.
Erastus’ presentation recorded 127 cases across 15 farms in the Karasburg district by 5 October, amid restrictions affecting livestock movement and export markets.
The presentation estimated that European, British and Norwegian markets account for about N$3.3 billion annually, or roughly 60% of Namibia’s beef export earnings.
Export suspensions and movement restrictions can affect revenue, working capital, operating costs and delivery schedules.
For investors, businesses must therefore demonstrate not only that they recognize risks, but also that they have budgeted for mitigation and tested what happens if conditions worsen.
“A complete pack does not guarantee funding, but a thin one will slow everything down,” Erastus said.
He urged companies approaching financiers to prepare a clear funding request, risk assessments, financial projections, costed mitigation plans, governance information, measurable indicators and supporting records such as approvals, contracts and project studies.
Beth Rivett-Carnac, from Rand Merchant Bank’s (RMB) sustainable finance team, said sustainability should not be treated merely as a compliance exercise, but as an opportunity to improve business performance and unlock growth.
Investments in renewable energy and water efficiency, for example, can reduce environmental impacts while lowering operating costs. Businesses should identify their most significant sustainability issues, establish measurable baselines and demonstrate progress against targets.
“One of the first steps is actually, how do you measure, how do you establish a baseline? And then obviously, how do you demonstrate improvement against that baseline?” Rivett-Carnac asked.
She further said that sustainable finance can include green and social loans or bonds, transition finance and sustainability-linked instruments.
However, each requires suitable projects or credible targets, reliable data and transparent reporting.
She also cautioned that sustainability labelling does not automatically guarantee cheaper borrowing. Financing decisions still depend on the strength of the business, the risks involved and the requirements of individual investors.
Rivett-Carnac’s presentation also identified inconsistent reporting, limited data on private companies and high project-preparation costs among the obstacles holding back sustainable finance across Africa.
Speaking on behalf of the Bank of Namibia (BON) and the NSFA secretariat, Sonia Namadiko said the alliance was established in September 2025 to strengthen coordination and build capacity across the financial sector.
She also added that previous discussions had identified gaps including unreliable climate data, limited technical expertise, inconsistent definitions, and a shortage of bankable sustainable projects.
BON is undertaking a diagnostic study to assess available climate data, identify gaps, and establish what information financial institutions need.
It is also supporting the development of a national sustainable finance taxonomy to clarify which economic activities qualify as sustainable.
