Namibia Secures N$1.5 Billion Loan from Germany for National Water Projects. Namibia has secured a N$1.5 billion loan from Germany’s Kreditanstalt für Wiederaufbau (KfW) development bank to support critical water infrastructure projects under the Water Sector Support Programme II.
The agreement, signed on Monday, includes a 20-year repayment term with a five-year grace period. According to Finance Minister Ericah Shafudah, the loan carries an interest rate of 10.09%.
The funding will be managed by the Namibia Water Corporation (NamWater) and allocated to four key projects aimed at improving water delivery infrastructure across various regions.
The supported 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)
- The installation of Package Plants, including desalination units
Speaking at the signing ceremony, Minister Shafudah stated that the investment is focused on building, rehabilitating, and upgrading bulk water infrastructure to address ongoing water supply challenges. She emphasised that communities in the northern regions are among those who stand to benefit significantly from the improvements.
The Water Sector Support Programme II continues to form part of Namibia’s long-term strategy to strengthen resilience against water scarcity and climate variability. The partnership with KfW builds on a history of cooperation in infrastructure development between Namibia and Germany.
