Mines and Energy Permanent Secretary Joseph Iita yesterday joined a list of others who have lamented the fact that the country is failing to use solar energy, despite having sunshine almost every day.

"Namibia is amongst the best suited nations on our planet for the implementation of SETs.

However, we have hardly been able to exploit the benefits of this gift.

This is mainly because our nation does not have a well-functioning, efficient and mature solar-energy private sector," he said.

Speaking in Windhoek at the signing of an agreement between the Ministry and Bank Windhoek for a scheme to provide funding to emerging small and medium enterprises (SMEs) and end users in the renewable-energy segment, Iita said such an initiative would boost awareness of the necessity and importance of solar energy.

This is especially vital now that the region is struggling to find alternative energy sources in the face of a looming power crunch as soon as next year.

The agreement will make it easier for SMEs in the renewable-energy sector to do business, especially those in the rural areas, and at the same time contribute towards rural development.

SMEs active in the renewable-energy sector will be able to get start-up loans from Bank Windhoek at an interest rate of prime minus three per cent.

These entrepreneurs have already been trained and are working in conjunction with the Namibia Renewable Energy Programme (NamREP) - which lobbied and negotiated with the Ministry and Bank Windhoek for six months for the setting up of such a scheme.

End users will be able to get a Bank Windhoek loan at prime rate minus five per cent for the installation of solar-energy systems at their homes, farms and businesses.

Equipment that individuals and contractors can get loans for includes solar home systems, solar water heaters and solar water pumps.

The Ministry of Mines and Energy has established a guarantee fund with Bank Windhoek, which will be responsible for the appraisal of applications, granting of loans, management of accounts and provision of a mentorship programme for qualifying SMEs.

Iita said the ultimate goal of the agreement was to build a sustainable market for solar-energy solutions.

Bank Windhoek Managing Director James Hill said his company was providing a mentorship programme for SMEs because business management was a major problem to many small companies and a serious handicap for the country.

He also expressed the hope that this initiative would encourage the use of alternative energy sources.

Bank Windhoek is also in another scheme with the Development Bank of Namibia to provide medium-term finance to SMEs requiring loans between N$250 000 and N$3 million.

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