A loan agreement worth N$1,5 billion from the German Kreditanstalt für Wiederaufbau (KfW) development bank is set to bring water to the drought-stricken northern regions of the country.
The Brief on 21 May reported that the loan that was facilitated through the Ministry of Finance, will be used to support critical water infrastructure projects under the Water Sector Support Programme II, which is aimed at improving water infrastructure to the northern areas. This programme continues to form part of Namibia’s long-term strategy to strengthen resilience against water scarcity and climate variability.
According to Finance Minister Erica Shafudah, the funding is urgent and strategic for the communities in the north.
“This funding is earmarked for the construction, rehabilitation, and upgrading of extensive bulk water infrastructure and investment of strategic importance that will directly address the long-standing water supply challenges faced by our communities,” she said.
Shafudah said the investment is focused on building, rehabilitating, and upgrading bulk water infrastructure to address ongoing water supply challenges, emphasizing that communities in the northern regions are among those who will benefit significantly from the improvements.
The loan will have a 10,9% interest rate and ‘n 20-yar repayment period, including a five-year grace period. Shafudah pointed out that this interest rate is 2,3% lower than the local interest rate with a similar timeframe. The grace period will allow the construction of these projects before repayment commences.
The agreement will finance the following key projects aimed at improving water delivery infrastructure across various regions. The projects include:
- the Omundaungilo–Omutsegwonime Bulk Pipeline Scheme (Phases 1 and 2);
- the Oshakati–Ondangwa–Oshali–Omuthiya–Omutsegwonime Pipeline Replacement (Phases 1 and 2);
- the Katima Mulilo Extension Phase 2; and
- the installation of package plants, including desalination units.
The partnership with KfW continues a history of cooperation in infrastructure development between Namibia and Germany. German ambassador to Namibia, Thorsten Hutter, welcomed the agreement, reaffirmed Germany’s ongoing support.
“The projects to be financed will help support Namibia’s resilience to droughts by helping to reduce water losses and increase a long-term sustainable water supply for the country,” he said.
NamWater will implement the projects on behalf of the government. According to NamWater CEO Abraham Nehemia, the agreement with the German Development Bank will boost the utility’s capacity to deliver reliable services.
“This partnership with the Government of the Republic of Namibia and the Government of the Federal Republic of Germany through KfW strengthens NamWater’s capacity to deliver reliable and sustainable water services to all Namibians,” he said.
“The support will enable us to accelerate the development and rehabilitation of vital infrastructure that is critical to meeting current needs and securing future supply.”
Source references
Govt secures N$1.5 billion German loan to tackle northern water crisis (2025) The Brief
Namibia Secures N$1.5 billion Loan from Germany for National Water Projects (2025) Namibia Today
https://namibiatoday.com/temporary-power-outage-scheduled-for-henties-bay-and-spitzkoppe-on-22-may/
