The government’s 24% stake in the delayed Hyphen Hydrogen Energy project is under scrutiny as the company’s final investment decision has been pushed to the end of 2027.
The African Development Bank announced last month a reimbursable grant of about N$100 million to Hyphen to reach the investment decision following the US$10 million grant in December 2025.
However, Green Hydrogen Programme spokesperson Jona Musheko says the government’s 24% interest was not funded through the national budget or ordinary taxpayers’ money.
Musheko says the government exercised its participation rights through SDG Namibia One, a blended-finance vehicle established to make funding available for green hydrogen projects.
“For the Hyphen investment specifically, the government secured €40 million in grant funding, of which part of it was used to finance the government’s proportional share of Hyphen’s project-development costs up to the final investment decision stage,” Musheko says.
The delay has raised concerns about how much the state will ultimately spend keeping its investment in the project alive before a final decision is made.
Shadow minister of international relations and trade Rodney Cloete says the government took up its 24% stake in December 2023, meaning delays now also affect the state as an investor.
“Every delay is now partly ours, and so is every cost of keeping the project alive while it waits,” Cloete says.
The project was initially presented as a major employment opportunity, with the government forecasting up to 15 000 construction jobs and 3 000 permanent positions, with 90% expected to go to Namibians.
Cloete says parliament should be given a report showing the project’s progress against the timelines agreed in 2023, what the 24% stake has cost and whether further funding will be required.
He also questions whether Hyphen has secured an offtake agreement for its planned ammonia production, saying a committed buyer would be critical to securing financing.
The project is planned for the Tsau //Khaeb National Park and was designated a strategic foreign project by Germany in 2024.
