In a 100 million euro program, Germany has promised further support to Namibia to achieve the development goals. Favorable loan conditions should enable renewals in the water supply and air conditioning technologies.
Germany and Namibia have reached an agreement on further financial cooperation. Germany wants to support the implementation of the development goals in Namibia. The agreement, called Agreement on Financial Cooperation for Loans, which Finance Minister Iipumbu Shiimi and Ambassador Herbert Beck signed on Tuesday, is the second of its kind after a contract from 2019, the so-called Governmental Negotiations on Development Cooperation. Part of the agreement are three programs with a total value of 100 million euros (the press release states 1.8 billion N $, according to the current rate it is around 1.7 billion N $), which among other things is due to lower interest rates on Namibian loans in Germany financed. The amount corresponds to a full 3.15 percent of the Namibian annual budget. As a result, the Namibian government benefits from more advantageous loan terms. The funds are provided by the KfW Development Bank.
The money will do three things: 50 million euros (850 million N $) will be used to renew the water supply infrastructure in Windhoek. A large part of the sum is to flow into the modernization of the Gammans sewage system. The aim is to double the daily processed water capacity from 25,000 to 55,000 cubic meters and ensure the quality and quantity of the water supply in the capital. The support also includes a loan of 40 million euros (N $ 680 million) for the construction of another drinking water recovery system and the analysis of measures to prevent water loss.
A further 30 million euros (510 million N $) are to be added to an existing credit line for the Namibian Development Bank (DBN) to promote climate-related technology. In this way, sustainable infrastructure projects such as solar and wind energy and public transport options are to be supported. Investors should have access to loans to implement climate projects. DNB is also to receive support in order to increase its capacities and raise its own standards.
And last but not least, 20 million euros (340 million N $) will flow into a credit line for Agribank Namibia to support farmers and improve the food supply and job opportunities in the countryside in the long term. Small to medium-sized companies should have access to a broader range of financial services.
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