Namibia and the Federal Republic of Germany have signed three grant agreements worth approximately N$382 million (€20 million) to advance water infrastructure and urban development projects.
The agreements, facilitated through KfW, allocate N$57 million and N$192 million for the Ohangwena Groundwater System and NamWater technical assistance, and N$134 million for the establishment of an Urban Development Fund.
Executive Director of the National Planning Commission Dr Michael Humavindu highlighted the critical impact of the agreements on urban and peri-urban areas.
“The €20 million we are about to sign today will go a long way in addressing the housing backlog, advancing bulk infrastructure development, and formalising informal settlements,” Humavindu said.
He added that past achievements under Namibia’s National Development Plans include 10,494 new houses and 18,387 fully serviced plots, though targets remain unmet.
Humavindu further emphasised the importance of diversifying water supply sources, noting that reliance on rain-fed systems makes Namibia vulnerable to climate shocks.
“While access to safe drinking water improved to 99% in urban and 87% in rural areas during NDP5, much work remains to reach 100% access,” he remarked.
National Planning Commission Director-General Obeth Kandjoze underscored the partnership’s longevity. “Since 2013, our governments have committed over €241 million (approximately N$4.8 billion) to developmental projects. This year alone, agreements totalling €20 million have been signed,” Kandjoze said.
Kandjoze noted that the agreements for water projects amount to 8% of Namibia’s N$2.2 billion budget for water infrastructure in FY 2024/25.
He also addressed Namibia’s rapid urbanisation, noting that “urban population growth of 65.5% between 2011 and 2023 has driven informal settlement expansions, requiring urgent intervention in housing and land delivery.”
Ulrike Metzger, Head of Development Cooperation at the German Embassy, expressed confidence in the partnership.
“These projects will help Namibia achieve its goals under NDP5 and the Harambee Prosperity Plan II. More importantly, they will significantly improve living conditions for the people of Namibia,” she said.
These projects include the Ohangwena Aquifer Climate Resilient Water Supply Project, estimated at €25.2 million (N$483 million), funded by a €10 million (N$192 million) German Government grant and an additional loan under the second phase of the Water Sector Support Programme (WSSP 2).
The WSSP 2 will also receive a concessional loan of €75 million (N$1.4 billion) to finance priority water projects in Northern Namibia, implemented by NamWater.
To ensure effective implementation, NamWater will benefit from a €3 million (N$57 million) grant for capacity-building measures, including energy-efficient planning, solar PV integration, and staff training.
The initiatives also include the establishment of an Urban Development Fund, focusing on upgrading infrastructure in informal settlements to improve living conditions for low-income groups.
The project, under the guidance of the Ministry of Urban and Rural Development (MURD), will involve community participation to address basic needs and economic development priorities, providing reliable services like water, electricity, and access to commercial centres.
This comes as since 1990, German Development Cooperation has contributed €1.6 billion (N$32.3 billion) to Namibia. Currently, the KfW portfolio comprises over 40 projects valued at €788.6 million (N$15.4 billion), with additional projects worth €123 million (N$2.4 billion) under preparation.
