Commercial bank role in building a sustainable financial future
One of the key roles of a commercial bank is to manage liquidity and ensure access to funding to support financial stability and economic growth. Aligning funding costs with
credit pricing, banks must respond to emerging trends, notably the global shift toward sustainable finance.
As sustainability becomes integral to financial strategy, banks must ensure they become strategic enablers of sustainable development. They must recognise that public sector
funding is insufficient to realise national developmental objectives. This involves mobilising financing not only from traditional sources but also through thematic
instruments such as green, social, or sustainability bonds, which demand greater transparency and accountability.
At Bank Windhoek, we recognise that Namibia’s future financial resilience depends on embedding sustainability into core financial processes. As a net carbon sink, Namibia is particularly vulnerable to environmental shocks. Directing funding toward initiatives with both ecological and social benefits is essential to building economic resilience and
contributing to achieving national development goals.
However, Namibia’s sustainable finance landscape remains underdeveloped. Although the issuance of thematic financial instruments is gaining traction, it remains limited,
often due to higher costs than conventional funding tools. Furthermore, transformational projects usually require blended finance structures to enhance viability, yet access to concessional funding remains a challenge, particularly for the private sector.
Despite these constraints, thematic instruments offer an opportunity for innovation and leadership. Beyond these instruments, other funding approaches, such as co-financing,
guarantees, risk-sharing facilities, and insurance, can be explored. By adopting a more agile, adaptive, and forward-thinking Treasury function, financial institutions can help
drive the transition to a more sustainable, resilient Namibian economy.
Strategic partnerships and policy shifts
Building on existing foundations and learning from early issuers is essential in a regional and local context where sustainable finance is still emerging. Collaboration is now more
critical than ever to unlock shared value and identify opportunities for support across sectors.
Accessing concessional funding - vital for implementing impactful yet financially unfeasible projects – requires multi-stakeholder partnerships. This includes increased engagement with the government, leveraging multilateral alliances, and collaboration with international agencies to co-finance green infrastructure and scale impact. Namibia must explore international best practices and adapt them to reflect local realities to ensure funding priorities align with national development goals.
This alignment will foster coherence between private sector ambition and public sector planning, creating a more effective pathway to sustainable development. In Namibia, where climate change and economic inequality are pressing concerns, the Treasury function must go beyond financial stewardship. It must act as a visionary leader, aligning liquidity management with strategic funding allocation and fostering collaboration with business units responsible for deploying funding to financially feasible projects. At Bank Windhoek, we are committed to this transformative journey. We embrace our role as bankers and key stakeholders in shaping a more sustainable and inclusive
Namibian economy, making one possibility a reality at a time.
*Claire Hobbs is the chief treasurer at Bank Windhoek.**
credit pricing, banks must respond to emerging trends, notably the global shift toward sustainable finance.
As sustainability becomes integral to financial strategy, banks must ensure they become strategic enablers of sustainable development. They must recognise that public sector
funding is insufficient to realise national developmental objectives. This involves mobilising financing not only from traditional sources but also through thematic
instruments such as green, social, or sustainability bonds, which demand greater transparency and accountability.
At Bank Windhoek, we recognise that Namibia’s future financial resilience depends on embedding sustainability into core financial processes. As a net carbon sink, Namibia is particularly vulnerable to environmental shocks. Directing funding toward initiatives with both ecological and social benefits is essential to building economic resilience and
contributing to achieving national development goals.
However, Namibia’s sustainable finance landscape remains underdeveloped. Although the issuance of thematic financial instruments is gaining traction, it remains limited,
often due to higher costs than conventional funding tools. Furthermore, transformational projects usually require blended finance structures to enhance viability, yet access to concessional funding remains a challenge, particularly for the private sector.
Despite these constraints, thematic instruments offer an opportunity for innovation and leadership. Beyond these instruments, other funding approaches, such as co-financing,
guarantees, risk-sharing facilities, and insurance, can be explored. By adopting a more agile, adaptive, and forward-thinking Treasury function, financial institutions can help
drive the transition to a more sustainable, resilient Namibian economy.
Strategic partnerships and policy shifts
Building on existing foundations and learning from early issuers is essential in a regional and local context where sustainable finance is still emerging. Collaboration is now more
critical than ever to unlock shared value and identify opportunities for support across sectors.
Accessing concessional funding - vital for implementing impactful yet financially unfeasible projects – requires multi-stakeholder partnerships. This includes increased engagement with the government, leveraging multilateral alliances, and collaboration with international agencies to co-finance green infrastructure and scale impact. Namibia must explore international best practices and adapt them to reflect local realities to ensure funding priorities align with national development goals.
This alignment will foster coherence between private sector ambition and public sector planning, creating a more effective pathway to sustainable development. In Namibia, where climate change and economic inequality are pressing concerns, the Treasury function must go beyond financial stewardship. It must act as a visionary leader, aligning liquidity management with strategic funding allocation and fostering collaboration with business units responsible for deploying funding to financially feasible projects. At Bank Windhoek, we are committed to this transformative journey. We embrace our role as bankers and key stakeholders in shaping a more sustainable and inclusive
Namibian economy, making one possibility a reality at a time.
*Claire Hobbs is the chief treasurer at Bank Windhoek.**
