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Govt acquires N$1.8bn for sustainable development efforts

2021-05-14  Maihapa Ndjavera

Govt acquires N$1.8bn for sustainable development efforts

Government this week signed a financial cooperation agreement for loans following the 2019 governmental negotiations on development cooperation between Germany and Namibia. At Tuesday’s signing, finance minister Iipumbu Shiimi stated that the agreement covers three programmes valued at approximately N$1.8 billion for which financing will be provided by interest-reduced loans in local currency, thereby securing favourable credit conditions for the government. 

“These projects will support the development of important water and other climate-related infrastructure projects in Namibia, and the promotion of agricultural households and micro, small and medium- sized enterprises through Agribank. The funding for the three projects under this agreement is provided by the KfW Development Bank,” he outlined.

Shiimi added that about N$900 million is earmarked for securing Windhoek’s water supply. This will be provided for the upgrading of water infrastructure by modernising and extending the Gammams waste water treatment plant. 

The investment will more than double the capacity of the plant from 25 000 cubic meters to 55 000 cubic meters of water treated per day. This will safeguard the provision of the needed quantity and quality of water as feed stock for water reclamation as one of the backbones of water supply to the city.

This project will thus complement the ongoing support provided through German development cooperation to the City of Windhoek in implementing its long-term strategies to ensure the supply and most efficient use of water for its citizens. 

German ambassador to Namibia Herbert Beck said this includes an N$720 million interest-reduced local currency loan provided for the construction of an additional direct potable reclamation plant in Windhoek, as well as a grant to identify measures to reduce water losses in the city’s water supply and sewage system.

In efforts to boost infrastructure based on climate-friendly technologies in Namibia, about N$540 million will be provided to extend an existing credit line to the Development Bank of Namibia (DBN) for climate-related infrastructure projects in the country. 

This facility aims to improve access to long- term finance for both private and public investors at incentivised conditions for climate-related infrastructure projects like solar photovoltaic and wind energy generation, as well as rural and urban water infrastructure and public transport projects. 

Head of Cooperation at the embassy Gabriele Geier said after assessing various sectors in Namibia, there was a need for a diversification in the country into horticulture. Also, in trying to make financing easier for small- scale farmers, some N$360 million has been earmarked for improving food production, income, and employment opportunities in rural communities.

This will be provided through a credit line to the Agricultural Bank of Namibia to sustainably and efficiently expand the range of financial services available to agricultural households, and micro, small and medium-sized enterprises. 

Geier added that the embassy is also in negotiations with Agribank with regards to collateral for farmers to easily acquire the loans.

2021-05-14  Maihapa Ndjavera

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