Can you explain the role of RMB Namibia in the Namibian mining industry?

RMB Namibia is a subsidiary of RMB, which is part of the FirstRand Group and one of the largest financial institutions in Africa. Since 2014, RMB Namibia has been actively involved in the country’s mining industry and works with approximately 80% of the active players in the sector.

How important is the mining industry to Namibia’s economy?

The mining industry holds great significance for Namibia’s economy. The country is known for its abundant natural resources, including major uranium deposits and being the world’s largest producer of marine diamonds. Mining contributes around 10% to Namibia’s GDP, driving economic growth. However, due to the COVID-19 pandemic and related restrictions, the industry experienced a contraction of approximately 12% in its contribution to the country’s GDP over the past year. While some mining operations were classified as critical and allowed to continue at reduced levels, others had to enter care and maintenance. Namibia’s mining sector encompasses a diverse range of operations, including base metals, precious metals, and uranium.

What factors hinder the growth of the Namibian mining industry?

There are areas where the Namibian mining industry can improve and foster growth. One aspect is the allocation of exploration licenses, with a current moratorium on issuing new licenses in place until August of this year. This measure was implemented to address shortcomings in the licensing process, and the Ministry is working on establishing new policies and regulatory frameworks to enhance the system. Another area for improvement is the availability and accessibility of geological and geophysical data. Currently, the Geological Survey of Namibia owns and hosts these datasets, but they should be easily accessible to the scientific and mining communities, ideally free or subsidized to encourage exploration investment.

Investors generally consider Namibia a favorable mining jurisdiction, but the lack of required technical skills is often highlighted. To address this issue, Namibia allows more expatriate workers to contribute their expertise while ensuring knowledge transfer to Namibians.

 How is RMB evaluating investment opportunities in the green energy sector?

RMB is actively assessing investment opportunities in the green energy space, particularly projects related to the growing demand for minerals used in batteries and electrification. Namibia, despite being an importer of power, has numerous renewable energy projects either under construction or in the feasibility phase. The country’s favorable geographical location makes it well-suited for solar and wind energy initiatives. As a bank, RMB collaborates with mining operations to structure projects that leverage renewable energy sources, unlocking their full potential.

What is RMB’s strategy to facilitate growth in the next three years?

RMB’s strategy revolves around supporting its clients through current challenges and adopting a partnership approach rather than solely providing services. The bank aims to find innovative solutions to meet the funding requirements of its clients and prides itself on being a solutionist bank. RMB ensures it has a team of industry experts who can form strong partnerships with clients, offering them tailored and innovative solutions to address their specific needs. By continuously adapting to clients’ changing circumstances and challenges, RMB strives to facilitate growth and drive positive outcomes.

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