Chairperson of the Parliamentary Standing Committee on Economy and Industry, Public Administration and Planning, Iipumbu Shiimi, has warned that Namibia’s ambition to become a regional transport hub could be undermined if government continues to prioritise roads over rail.
Speaking at a recent engagement, Shiimi highlighted the imbalance in infrastructure funding. “16 billion on roads, 4 billion on railways, while the need is actually the other way around. So if you really want to build a transport hub, much of the emphasis must now go to railway,” he said.
Shiimi stressed that while road investment remains important, Namibia has already invested heavily in road expansion, whereas the railway system remains outdated, with much of the infrastructure dating back to before the 1960s.
He noted that allocating more resources to rail projects, such as the planned line to Katima Mulilo, could deliver significant economic and logistical benefits.
His remarks come as TransNamib had planned to invest N$1.7 billion in the purchase of 23 new locomotives as part of a fleet upgrade, while also committing N$311 million to refurbish seven locomotives.
The funding, secured in June 2024 from the Development Bank of Namibia (N$500 million) and the Development Bank of Southern Africa (N$2.1 billion), was intended to boost the operator’s capacity.
However, Works and Transport Minister Veikko Nekundi cancelled the procurement, raising concerns over the risks of sourcing locomotives from a single foreign supplier.
TransNamib had proposed acquiring General Electric/Wabtec locomotives to standardise its fleet. Nekundi argued that the single-source approach carried excessive risk as it excluded competition.
Meanwhile, the Trans-Kalahari Railway project linking Namibia and Botswana has entered a new phase, with both governments focusing on attracting private sector investment, finalising financing frameworks, and preparing for regulatory and operational readiness.
