Namibia is a country heavily tied to land-use as a source of employment for its people. According to the Namibian Labor Force Survey (Ministry of Labor, 2004), agriculture employed 27% of the country’s workforce in 2004. Additionally, Namibia is one of the least densely populated countries in the world, and according to the 2003/04 Household Income and Expenditure Survey, 48% of rural households have farming as their main source of income. Mitigating and adapting to the impacts of climate change is crucial for Namibia due to their socio-economic development being keenly linked to climatic limitations. In the country’s transition, investment will play a crucial role in developing more sustainable business practices. To better understand what industries to focus investment in, and in what quantities, an assessment of investment and financial flows was conducted. Using this assessment, key investment entities and sources of capital were identified and forecasted over a 25-year period. Potential policy implications were then identified.
Investment will be critical to reduce greenhouse gas emissions and adapt to the impacts climate change will have on land-uses. Namibia’s government chose to conduct an investment and financial flows assessment in 2011 to help identify the investment sources and durations needed for two key sectors, energy and agriculture. The report revealed that more than US$ 4.05 billion would be needed through 2030 to reduce greenhouse gases from the energy sector, and to adapt land-use, land-use change and forestry measures.
The Namibian energy and agricultural Investment & Financial Flows study outlined the need of more than US$ 4 billion of investment over a 25-year period. The energy sector, which includes transportation, specifically will require US$ 1.2 billion worth of investing. Energy mitigation measures would require substantial household equity and debt investment when compared to funding from other sources, such as corporations or governments, but stands to increase Namibia’s energy security by reducing energy imports from 50% to 30%. For agriculture, which includes livestock and crops, the overall mitigation costs are US$ 2.89 billion. The government is identified as the main source of agricultural funding, according to this assessment.
- Government of Namibia, Norway, Switzerland, Spain, and Finland
- People of Namibia
- United Nations Development Programme
- Environmental Consultants Namibia