Namibia secures N$3.7bn AfDB railway upgrade loan

November 01, 2023

The African Development Bank Group (AfDB) has approved a loan of N$3.7 billion (US$196.43 million) for Namibia to implement the second phase of its Transport Infrastructure Improvement Project (TIIP).

The project is estimated to cost N$7.1 billion (US$$379.12 million). The loan, approved on 31 October 2023, represents 51.8% of the project’s total cost, while the Namibian government will provide the remaining 48.2%.

The project entails constructing 207km of new rail track close to the existing line between Kranzberg and Otjiwarongo, using concrete railway sleepers and new rails.

The works include constructing 16 bridges, renovating two stations, and procuring 55,000 tonnes of rails to build 518 kilometres of track.

Other components include modernising the railway signaling system along the Walvis Bay-Tsumeb line to improve its reliability, safety and capacity, as well as the overall performance of the railway system.

Recognising the importance of good rail connectivity for bulk cargo, the TIIP second phase would bring to 417km of the cumulative rail upgraded by the AfDB.

“The project will maximise the benefits and be transformative for the competitiveness of Namibia and assist in attaining the vision of the country becoming a regional logistics hub by 2030 while catalysing development change in neighbouring countries and the sub-region. The project will also connect Namibia to Africa’s Copper Belt, and achieve regional railway connectivity,” AfDB Director General for Southern Africa, Leïla Mokaddem said.

The project aligns with Namibia’s long-term Vision 2030 to the country’s logistics value chain by tackling railway infrastructure bottlenecks and also helping to strengthen Namibia’s trade competitiveness.

Having previously funded the expansion of the container terminal at the Port of Walvis Bay, the AfDB is supporting integrating Namibia regionally by building critical port and rail infrastructure to connect the country to the rest of the region, move goods, support value chains and promote trade.

As at 30 September 2023, the Bank Group's active portfolio in Namibia is estimated at approximately N$12.9 billion (US$687 million), split among 10 operations in six sectors: transport (15.6%), finance (35.1%), multi-sectoral (18.1%), water (15.3%), agriculture (7.9%) and the social sector (8%).

The African Development Bank Group has been operating in Namibia since 1991. 


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Last modified on Thursday, 02 November 2023 21:35

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