• In the bilateral cooperation between the Governments of the Republic of Namibia and the Federal Republic of Germany, it was agreed, among others, to support the water supply in the North and the upgrading of informal settlements

• Three grant agreements in the amount of EUR 10, 7 and 3 million (equivalent to approx. NAD 192, 134 and 57 million respectively), were signed by the Namibian Government and KfW.

• The grants are used for the water sector (Ohangwena Groundwater System and Technical Assistance for NamWater) and urban development (infrastructure measures in informal settlements)

On Monday 2 December 2024, the Honorable Obeth Kandjoze, Director General of the National Planning Commission of Namibia, the Honorable Erastus Uutoni, Minister of Urban and Rural Development, Honorable Calle Schlettwein, Mr. Abraham Nehemia, CEO of NamWater, Ulrike Metzger, Head of Cooperation from the German Embassy and Beatrice Lucke, Country Director of KfW Development Bank witnessed the signing of three grant agreements with a total amount of EUR 20 million (equivalent to approx. NAD 383 million). These projects are financed by the Federal Republic of Germany through KfW Development Bank.

Background information:

As the driest country in Sub-Saharan Africa, with more than 80% of its land area covered by desert or semi-desert, Namibia regularly experiences extreme and prolonged periods of drought, as is currently the case. This results in a highly sensitive water supply situation which requires precise demand management, the rehabilitation and expansion of supply infrastructure, as well as management of existing water resources and development of new ones. It is estimated that between 600,000 and 1 million people (25 to 40 percent of the population) live in a total of 230 informal settlements in Namibia. At the National Land Conference of 2018, the former President Geingob declared the

situation in informal settlements in Namibia a national emergency and a humanitarian crisis. The lack of ownership and official land titles prevents residents from investing in their land, building permanent homes and improving their economic situation. Additionally, some people live without or with very rudimentary infrastructure, with no access to running water, electricity or sanitation. The Namibian Government has recognized these critical issues facing Namibia in its strategic objective set out in the Harambee Prosperity Plan II.

The projects in detail:

Ohangwena Aquifer Climate Resilient Water Supply Project

Currently, most areas in the eastern Ohangwena Region and northern Oshikoto Region have not yet been connected to any centralized water distribution systems and water is sourced from decentralized traditional wells, individual boreholes and from accumulated rainwater in pans/channel systems (“oshanas”). However, these water sources are under significant pressure and their water quality is often not adequate thus presenting a public health hazard.

The project therefore aims at developing the Ohangwena Groundwater System in a sustainable manner by installing multiple smaller, decentralized abstraction, treatment and distribution systems throughout the area. The goal is to improve water supply resilience, manage water resources effectively, and adapt to climate change impacts. A total number of 40,000 people are expected to directly benefit from improved access to drinking water, especially those vulnerable to climate change effects.

The total cost of the project is estimated at EUR 25.2 million / NAD 483 million and will be financed by the EUR 10 million grant (NAD 192 million) provided by the German Government through KfW signed on 2 December 2024, as well as by funds from an additional loan for a second phase of the Water Sector Support Program (WSSP 2) (see below).

Accompanying Measure to WSSP 2

On another occasion, but shortly, a concessional loan for the financing of a second phase of the national Water Sector Support Program (WSSP 2) in the amount of EUR 75 million (NAD 1.4 billion) will be signed, which will finance priority water projects in Northern Namibia and will be implemented by NamWater as Project-Executing Agency.

In order to ensure an adequate execution of these important investments, the German Government via KfW provides NamWater with grant funding in the amount of EUR 3 million (NAD 57 million) to support project implementation. Furthermore, the Accompanying Measure will include capacity building measures for NamWater in very different areas such as considering energy-efficiency and solar PV in planning and design of water projects, as well as trainings for NamWater’s water monitoring and operational staff.

Support to the Establishment of an Urban Development Fund Phase I

The objective of the project to be financed under the urban development grant is to improve the living conditions in and for selected urban informal settlements through the provision and sustainable use of upgraded and integrated infrastructure. The target group is the low to ultra-low income groups who do not otherwise have access to serviced land and land tenure.

Upgrading concepts will be elaborated by MURD and Local Authorities with the participation of the local population in order to reflect their priorities , not only regarding their basic needs, but also regarding their perspectives for economic development. Together with reliable infrastructure services (water, electricity, mobility and access to commercial centers) this bears the potential for local economic development.

German Development Cooperation 1990 - 2024

From 1990 until today, the funds of German Development Cooperation amount to 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.