Namibia Secures €90 Million Loan for Water Infrastructure Development, Enhancing Resilience Against Drought
In a move set to significantly enhance water supply infrastructure in northern Namibia, the government has inked a crucial loan agreement worth approximately N.5 billion (around €90 million) with the renowned German Development Bank, KfW. This partnership aims to tackle historical water challenges and is a great stride towards improving the quality of life for numerous communities in the region.
The deal, facilitated through Namibia’s Ministry of Finance, signals the nation’s commitment to delivering effective and sustainable water solutions. Finance Minister Erica Shafudah emphasized the urgent need for this funding, stating that it is of strategic importance in revitalizing water infrastructure to meet the demands of local communities. “This funding is earmarked for the construction, rehabilitation, and upgrading of extensive bulk water infrastructure,” Shafudah noted. She also highlighted that the loan features a favorable interest rate of 10.09%, which is 2.3% lower than the average local rate for comparable loans, and boasts a 20-year repayment period with a five-year grace period.
Among the key projects slated for financing are the Omundaungilo–Omutsegwonime Bulk Pipeline Scheme and the Oshakati–Ondangwa–Oshali–Omuthiya–Omutsegwonime Pipeline Replacement. These initiatives aim not only to replace aging infrastructure but also to implement advanced technologies such as a desalination plant, thereby diversifying water sources and enhancing water availability.
German Ambassador Thorsten Hutter voiced his support for the partnership, highlighting its significance in bolstering Namibia’s resilience to drought conditions. “The projects financed through this agreement will play a vital role in reducing water losses and ensuring a long-term sustainable water supply for the country,” he stated.
Abraham Nehemia, CEO of NamWater, expressed optimism about the agreement, noting that it fortifies the utility’s ability to provide reliable and sustainable water services to all Namibians. “This collaboration with the German government will enable us to accelerate the development and rehabilitation of critical water infrastructure,” Nehemia remarked, underlining the shared goal of securing future water supply.
As Namibia embarks on this exciting journey to upgrade its water infrastructure, the collaboration with KfW stands as a beacon of hope and an example of successful international cooperation. The initiatives backed by this funding are projected to significantly improve the lives of thousands of Namibians, paving the way for a more resilient and sustainable future.
