The Development Bank of Namibia (DBN) has secured a N$1.5 billion loan from the African Development Bank (AfDB) to finance projects in renewable energy, agricultural value chains, and women-led businesses, in a move aimed at tackling Namibia’s structural economic challenges.
The funding, approved on 18 December 2024 and backed by a sovereign guarantee from the Namibian government, forms part of broader national efforts to promote economic diversification, improve private sector participation, and reduce dependency on international trade.
“Against this backdrop, in November 2023, the Development Bank of Namibia (DBN) requested 1.5 billion rand in financing from the Bank, backed by a sovereign guarantee, to support projects in strategic sectors,” the AfDB said in a statement.
The AfDB noted that Namibia continues to face significant hurdles, including limited economic diversification and constrained private investment. The facility aims to address these challenges by providing a state-guaranteed line of credit to improve access to clean energy, build local manufacturing capacity, and strengthen social protection systems.
“This intervention will significantly contribute to climate finance goals,” the AfDB said, adding that US$40 million of the total amount is earmarked specifically for climate adaptation projects.
The financing package includes targeted support for women entrepreneurs through the Affirmative Finance Action for Women in Africa (AFAWA) initiative. “The AFAWA grant will provide both financial and technical assistance to promote gender mainstreaming, develop skills and strengthen the financial ecosystem,” the Bank said.
Farmers, small and medium enterprises (SMEs), and local communities are also expected to benefit from improved agricultural processing, storage, and distribution infrastructure.
“DBN support will strengthen agricultural value chains, supporting processing, storage and distribution to improve productivity and food security, benefiting farmers, SMEs and local communities,” the AfDB said.
In addition, renewable energy projects financed under the programme will focus on expanding access to clean and affordable energy. “Renewable energy projects will expand access to clean, affordable energy, reducing the country’s energy dependency and promoting rural development,” the Bank added.
The programme is expected to be implemented over a three-year period and is scheduled for completion by 15 January 2028.
