On 24 October 2024, Honorable Iipumbu Shiimi, Minister of Finance and Public Enterprise of the Republic of Namibia, and Dr. Thorsten Hutter, Ambassador of the Federal Republic of Germany to Namibia, signed the Agreement on Financial Cooperation for a Loan following the 2023 Governmental Negotiations on Development Cooperation between Germany and Namibia.

The agreement covers a programme to the value of EUR 10 million (approximately N$ 190 million NAD). This progamme will support the establishment of an Urban Development Fund. It follows a grant provided in 2021 to the amount of 7 million Euro and will be implemented via KfW.

In 2021 the Namibian and German governments agreed to provide support through financial and technical cooperation to establish new and improve existing inclusive and sustainable urban development concepts for Namibia’s informal settlements.

These concepts aim to improve numerous challenges of these settlements, including the lack of basic services and infrastructure. Roads and transportation systems are usually underdeveloped and limited access to clean water, sanitation, electricity, and waste management and the proximity to industrial areas promote health risks. Informal settlements often have higher rates of crime and violence due to overcrowded living conditions and inadequate law enforcement and community support. Many structures are built with inadequate materials and are vulnerable to environmental hazards. Furthermore, many informal settlements exist without legal recognition, leaving residents vulnerable to eviction and lack of property rights.

Addressing these challenges requires a multifaceted approach. The German side appreciates the commitment of the Ministry of Urban and Rural Development (MURD) being the existing executing agency and coordinating body on the Namibian side.

To further streamline and finalize the goals set in 2021, the complementing support for this programme will provide the basis for establishing a sustainable financing mechanism to develop a blueprint for upgrading informal settlements that can be replicated countrywide.

German Development Cooperation 1990 – 2024

From 1990 until present, the funding provided to Namibia as part of German Development Cooperation (grants and loans) amounts to approx. EUR 1.6 billion (approx. NAD 32.3 billion). The KfW portfolio under current implementation comprises over 40 projects with a total funding volume of EUR 788.6 million (approx. NAD 15.4 billion), while future projects with a total funding volume of approx. EUR 123 million (approx. NAD 2.4 billion) are under preparation.