• February 24th, 2020

New agreement with Germany provides targeted development finance

WINDHOEK – Namibia and Germany on Monday signed an Inter-Governmental Bi-lateral Agreement. The agreement, signed by Minister  of Finance Calle Schlettwein, and outgoing German ambassador to Namibia Christian Schlagga, aims to provide targeted financial cooperation to finance development projects in the priority areas of national developmental, consistent with Namibia’s National Development Plans. 

At the signing ceremony,  Schlettwein noted that the targeted loans uptake does not constitute additional borrowing, but means funding for budgeted projects. He added that the disbursements provide for local currency arrangement, which eliminates foreign exchange risks.

“It reflects the outcome of the government-to-government negotiations and provides for preferential loans for, inter alia, potable water supply and support programme for national road maintenance and rehabilitation. Notably, the funding for secure water supply is especially important, given the current pressing needs which are exacerbated by the prevailing drought national disaster,” said Schlettwein. 

The Inter-Governmental Bi-lateral Agreement enables the government, or another borrower determined jointly by the two governments, to obtain preferential financing from Kreditanstalt für Wiederaufbau (KfW) for projects to support the national development agenda as set out in Namibia’s National Development Plans. This preferential financing focusses on natural resource management, sustainable economic development, and transport. 

Namibia’s existing relationship with the KfW includes concessional loan funding towards key national projects, comprising, inter alia of Hardap Dam Rehabilitation, Trans-Caprivi Highway, Rural Basic Communications, Upgrading of the Port of Walvis Bay, Windhoek Water Reclamation Infrastructure, Oshivelo-Oshakati Road Rehabilitation; and Labour-based Road Construction.  Others are the Extension of Payment Services, Extension of Smartcard System and Financial Services, Participation at Transport SWAP,  Mururani Gate at Rundu and Ondangwa-Oshikango road rehabilitation.

“We are pleased to note that Germany remains a major Bilateral Development Cooperating Partner to Namibia despite our country having graduated into the class of Upper Middle-Income Countries, which has led to other partners withdrawing, reducing or changing their mode of cooperation with us,” Schlettwein concluded. 

Staff Reporter
2019-06-26 10:26:12 | 7 months ago

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