Namibia and Germany ink N$1.8 billion development deal

 Namibia and Germany ink N$1.8 billion development deal

Namibia and Germany ink N$1.8 billion development deal.

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Namibia and Germany have inked a 100 million Euros (N$1.8 billion) development finance deal to improve food security, water and sanitation as well climate change as well as project financing as part of the ongoing engagement between the two countries to improve close cooperation in the future.

Commenting on the agreement Namibian Minister of Finance Ipumbu Shiimi said the financial intervention from Germany   will go a long way in boosting the southern African country’s efforts in improving the water sector, combating climate change and steering development.

The funds will be channelled through both the Development Bank of Namibia (DBN) which is also expected to further finance water and sanitation projects through availing part of the available funds to the City of Windhoek and the Agriculture Bank of Namibia (Agribank) which is expected to channel the resources for the betterment of the agriculture sector through availing of loans to different Namibian farmers.

“We are here today to witness the signing ceremony of a long standing partnership between the Federal Republic of German and the Republic of Namibia in the areas of water sector, infrastructure development as well the issue of food security which is close and dear to our hearts,” Shiimi said.

He also reiterated the importance of the two countries working together for the greater good of the development of the Southern African country and creation of employment.

However Germany’s top Diplomat in Windhoek, Ambassador Herbert Beck said he could not wait for the projects that will benefit from the funding to get off the ground while emphasising that the release of the funds is part of the two countries ongoing developmental partnership meant to stimulate development and support each other in areas of cooperation.

The deal will see the former colonial power availing funds to the Development Bank of Namibia to further lend to Namibian companies in projects that are key in developing infrastructure that help in the combating of climate change as well as infrastructure development.

“EURO 50 million (N$540 million) will be provided for the upgrading of the water infrastructure in Windhoek by modernising and expanding Gammams wastewater treatment plant. The investment will more than double the capacity of the plant from 25 000 cubic metres to 50 000 cubic metres of water treatment per day, “Ambassador Beck said.

He said the water treatment project will complete ongoing engagement between the German development corporation that have been ongoing and will also improve the Namibian capital city’s access to water which has more often than not become a challenge because of erratic rainfall patterns in the Southern African country dominated by desert climatic conditions.

According to ambassador Beck the further break down of the funds will see DBN disburse EURO 30 million (N$540 MILLION) to the financing climate change infrastructure related projects while the remaining EURO 20 million (N$360 million) will be channelled towards providing financing to rural house golds from small to medium size in the agriculture sector as a way of stimulating the livelihoods and improve their standards of living in the process

 

Chris Louw

https://sashares.co.za/

Featured Financial Writer for SA Shares - Read more about Chris's Bio -

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