The German Government, through its development bank KfW, says it will grant Namibia a N$191 million (€10 million) loan for the establishment of an Urban Development Fund that will transform informal settlements.
According to the German Embassy, the loan was secured following the 2023 governmental negotiations on development cooperation.
The loan aims to bolster Namibia’s sustainable urban development efforts and builds on Germany’s prior support, which included a N$133.7 million (€7 million) grant in 2021.
“The agreement covers a programme to the value of €10 million (approximately N$190 million). This programme will support the establishment of an Urban Development Fund. It follows a grant provided in 2021 to the amount of €7 million and will be implemented via KfW,” a release by the German Embassy read.
The release further states that the funds will lay the groundwork for a sustainable financing mechanism to drive Namibia’s vision of inclusive urban development.
Coordinated by the Ministry of Urban and Rural Development, the programme will develop models for transforming informal settlements, providing a replicable framework to be implemented nationwide.
“Addressing these challenges requires a multifaceted approach. The German side appreciates the commitment of the Ministry of Urban and Rural Development being the existing executing agency and coordinating body on the Namibian side,” the release read.
The project seeks to upgrade and furnish informal settlements with improved transportation systems, better access to clean water, and strengthened community support services.
“These concepts aim to improve numerous challenges of these settlements, including the lack of basic services and infrastructure,” the release read.
Since Namibia’s independence in 1990, German Development Cooperation has provided approximately N$32.3 billion (€1.6 billion) in funding through grants and loans.
Currently, the KfW Development Bank is implementing over 40 active projects in Namibia, with a combined funding total of about N$15.4 billion (€788.6 million).
Additionally, future projects valued at roughly approximately N$2.4 billion (€123 million) are in the planning stages.
