Namibia secures N$1.5 billion German loan to combat water scarcity
Namibia has taken a significant stride in addressing its persistent water challenges, securing a crucial €75 million (N$1.5 billion) concessional loan from the German Development Bank (KfW). This vital funding, earmarked for the Water Sector Support Programme II, will fuel extensive water infrastructure developments across Namibia's northern regions, directly confronting the acute scarcity exacerbated by low rainfall and recurrent droughts. The strategic 20-year loan, featuring a 5-year grace period and an interest rate 2.3% below market average, underscores a vital partnership aimed at bolstering water accessibility, improving public health, and stimulating economic activities for thousands of residents.
Speaking at the signing ceremony, finance minister Ericah Shafudah said the urgency of addressing Namibia’s water challenges. “Namibia is currently faced with water scarcity and a dry climate due to unpredictable low rainfall. The situation is aggravated by recurrent drought conditions, which threaten water supply in the country,” she said.
“This funding is earmarked for the construction, rehabilitation, and upgrading of extensive bulk water infrastructure—an investment of strategic importance that will directly address the long-standing water supply challenges in the northern regions,” Shafudah said.
Among the flagship projects under WSSP II is the Omundaungilo–Omutsegwonime Bulk Pipeline Scheme, which involves 130 kilometers of new pipelines, boreholes, reservoirs, and treatment facilities. Once completed, the initiative is expected to supply clean water to over 27 000 residents in the Ohangwena and Oshikoto regions, improving public health and stimulating economic activities.
Other components of the programme include the Oshakati–Ondangwa–Oshali–Omuthiya–Omutsegwonime pipeline replacement, the Katima Mulilo Extension Phase 2 in the Zambezi Region, and the deployment of small-scale desalination units to enhance potable water access from saline sources.
Shafudah expressed gratitude to Germany and KfW for their continued support, stating,
“This concessional loan is a tangible outcome of our enduring partnership, and it demonstrates Germany’s commitment to Namibia’s development agenda.”
She further acknowledged the collaborative efforts of the Ministry of Agriculture, Water and Land Reform, and NamWater, who will lead project implementation.
“These projects will significantly enhance water accessibility and contribute to our national development goals and the aspirations outlined in the SWAPO Manifesto,” Shafudah said.
Speaking at the signing ceremony, finance minister Ericah Shafudah said the urgency of addressing Namibia’s water challenges. “Namibia is currently faced with water scarcity and a dry climate due to unpredictable low rainfall. The situation is aggravated by recurrent drought conditions, which threaten water supply in the country,” she said.
“This funding is earmarked for the construction, rehabilitation, and upgrading of extensive bulk water infrastructure—an investment of strategic importance that will directly address the long-standing water supply challenges in the northern regions,” Shafudah said.
Among the flagship projects under WSSP II is the Omundaungilo–Omutsegwonime Bulk Pipeline Scheme, which involves 130 kilometers of new pipelines, boreholes, reservoirs, and treatment facilities. Once completed, the initiative is expected to supply clean water to over 27 000 residents in the Ohangwena and Oshikoto regions, improving public health and stimulating economic activities.
Other components of the programme include the Oshakati–Ondangwa–Oshali–Omuthiya–Omutsegwonime pipeline replacement, the Katima Mulilo Extension Phase 2 in the Zambezi Region, and the deployment of small-scale desalination units to enhance potable water access from saline sources.
Shafudah expressed gratitude to Germany and KfW for their continued support, stating,
“This concessional loan is a tangible outcome of our enduring partnership, and it demonstrates Germany’s commitment to Namibia’s development agenda.”
She further acknowledged the collaborative efforts of the Ministry of Agriculture, Water and Land Reform, and NamWater, who will lead project implementation.
“These projects will significantly enhance water accessibility and contribute to our national development goals and the aspirations outlined in the SWAPO Manifesto,” Shafudah said.
