Irene !hoaës
30 November 2011
Windhoek — Once fully functional, the newly established Environmental Investment Fund (EIF) could generate N$300 million annually through ‘green levies’.
Namibia will soon start raising financial resources for direct investment in environmental protection and natural resource management through the recently established EIF.
The ultimate goal of the EIF is to improve the quality of life and well-being of the environment, thereby reducing the need to pursue activities that degrade Namibia’s fragile environment and waste its natural resources.
EIF will secure funds from donors to maintain an endowment fund that will generate a permanent stream of income, as well as procure annual funds in Namibia from conservation fees and environmental levies.
Possible types of environmental levies include a carbon tax, and waste management levies on plastic bags, non-recyclable cans and toxic substances, amongst others.
According to the fund’s Chief Executive Officer, Benedict Libanda, a committee is in place to discuss the possible environmental taxes, led by the Ministry of Finance, in consultation with the ministries of Environment and Tourism; and Trade and Industry, as well as the EIF.
The finance ministry will collect the levies and stakeholders still have to discuss what portion will be collected by the EIF. In 2001, an Act was passed and the environment ministry is working on a strategy to generate income for the fund.
As of the 2009/2010 financial year, government put in N$6 million to start the fund and in 2010/2011 it put in an additional N$15 million, meaning the fund is currently N$23 million strong.
“This shows political will and also challenges the private sector to play their role in environment investment activities,” Libanda said.
The EIF will fund wildlife management, natural resource management, forestry, aquaculture, tourism development initiatives as well as initiatives looking at generating new knowledge such as research and publications within the environmental parameters.
“It’s so wide – sustainable land management, water utilisation and pollution are all activities the fund will support,” Libanda said.
EIF will soon be advertising and call for proposals for environmental grants in the different sub-sectors of environment, mainly targeting community-based natural resources and rural development.
“By 2012 March these funds will be dispersed to communities or conservancies,” he added.
Libanda said a stand-alone sub-activity of the EIF would be to look at supporting bursary schemes for students, be it postgraduate or undergraduate levels.
The endowment fund will generate continuous income to support environmental activities.
“We hope to do that with the National Planning Commission (NPC) looking at multilateral and bilateral partners. How to set up a fund where donors can give their funds and then the EIF can manage such a fund and utilise it on interest received for projects,” the fund’s head said.
Similar practices are already underway in Kenya, South Africa, Uganda, Jordan and Finland.
“Now it is a common way of funding conservation activities in South America,” Libanda added.
A donor conference is planned where different mechanisms will be introduced asking for pledges.
“Currently we are consulting on how to implement all these activities but in the absence of a business plan and a strategy we are not directly going into implementation. We want to finalise that, and hopefully be ready by February 2012.
“After that we will identify key activities and areas of concentration of funds.
For now, the fund will be kept as small as possible, in terms of human resources, as only six staff members, namely, the chief executive officer, finance and administration manager, grants administrator, finance support person, driver and an administrative secretary would be employed.
Future positions envisaged are in the areas of research, investment analysis, business development and communications. The fund has a technical advisory committee, in addition to its board, to strengthen corporate governance.
The committee consists of specialists in different areas of environmental management, such as an ecologist, economist, tourism and development specialist, public policy specialist and investment specialist.
Libanda said in future the EIF will also give out loans, similar to the Development Bank of Namibia, but for now only grants are given.
However, before all is in place, Libanda said a very rapid education and awareness creation exercise would be conducted among the public in order to clarify and make people understand the importance of such levies, to avoid possible resistance and wrong perceptions.
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