DEVELOPMENT BANKS JOIN FUNDS FOR NAMIBIA INFRASTRUCTURE PROGRESS
Will the new partnership help Namibia resolve its infrastructural problem or will lack of private capital unavailability stop them.
Infrastructure development is a key driver for progress across any developing nation. This is why the Development Bank of Namibia (DBN) and Development Bank of South Africa (DBSA) is combing to make that possible. The plan is to pledged N$8 billion in finances for infrastructure requirements in Namibia.
According to the announcement, the funds will be for water, electricity, transport and logistics projects in Namibia. Meanwhile, the pledge consist of N$3 billion for NamWater to develop water projects, N$2,5 billion for NamPower for electricity generation and transmission. It also include a N$2,5 billion pledged to TransNamib for the acquisition of rolling stock, railways network upgrades, and to operationalise its new business plan, which focuses on rail transport.
NAMIBIA INFRASTRUCTURE PROBLEM
Namibia has a number of visible, imminent and impending infrastructure challenges. This challenges needs to be addressed if not, it may derail the country’s further social and economic development. Meanwhile, the challenges at the moment has to be the lack of service infrastructure. This may overtime result in the reduction of new investment making potentially investors try other region.
IMPORTANCE OF THE FUND
Namibia core infrastructure was Installed in the early 60s and 70s and 80s. Such infrastructure includes; water, energy and roads while most of the railways were more earlier than the 60s. According to reports, more than 90% of the current railway track in Namibia were laid down in 1930.
The fund is vital as it will enable mobilise financial capital locally, regionally and internationally, and to channel such capital into infrastructure and industrial projects in Namibia. This was announced by Development Bank of Namibia (DBN) chief executive officer, Martin Inkumbi.
DBSA head of the Southern African Development Community (SADC) client coverage, Davies Pwele said both banks have a long-standing relationship governed by a memorandum of understanding. This will also enable them to jointly participate in the financing of infrastructure projects in Namibia.
However, with the new partnership, can Namibia resolve its long standing infrastructure problem?