African development Bank loan to Namibia for infrastructure upgrade with ongoing work being done

The African Development Bank Group has approved a $196.43 million loan for Namibia to implement the second phase of its Transport Infrastructure Improvement Project (TIIP). Approved on 31 October 2023, the loan covers 51.8 percent of the project's total cost, with the Namibian government providing the remaining 48.2 percent. The project is part of Namibia's Vision 2030, aimed at enhancing the country's logistics value chain by addressing railway infrastructure bottlenecks and boosting trade competitiveness in Namibia and the southern African subregion.

The project involves constructing 207 kilometers of new rail track near the existing line between Kranzberg and Otjiwarongo using concrete railway sleepers and new rails. It also includes building 16 bridges, renovating two stations, and procuring 55,000 tonnes of rails to construct 518 kilometers of track. Additionally, the project will modernize the railway signaling system along the Walvis Bay-Tsumeb line to improve reliability, safety, capacity, and overall railway system performance. This phase will bring the total rail upgraded by the Bank to 417 kilometers, following a previous renovation of 210 kilometers from Walvis Bay to Kranzberg.

Ms. Leïla Mokaddem, the Bank’s Director General for Southern Africa, highlighted the transformative potential of the project, stating it would enhance Namibia's competitiveness and assist in achieving the Vision 2030 goal of becoming a regional logistics hub. The project is expected to catalyze development in neighboring countries and connect Namibia to Africa’s Copper Belt, promoting regional railway connectivity. The Bank's support also includes the expansion of the container terminal at the Port of Walvis Bay, further integrating Namibia regionally and facilitating trade.

The upgraded railway line will benefit commercial agricultural land and urban areas along the corridor, providing affordable, reliable, and safe rail transport that boosts regional and national development. Transporters, agricultural communities, and industries will experience faster commuting times, and road maintenance costs are expected to decrease as bulk cargo transport shifts from road to rail. The African Development Bank Group, operating in Namibia since 1991, had an active portfolio estimated at approximately $687 million as of 30 September 2023, spread across six sectors, including transport, finance, multi-sectoral projects, water, agriculture, and social sectors.