Germany, through KfW, supports the construction and rehabilitation of key water infrastructure to secure a sustainable long-term water supply in Namibia

• A loan agreement in the amount of EUR 75 million in ZAR (NAD 1.5 billion) was signed by the Namibian Government, NamWater and KfW

• The loan will be funding the Namibian Water Sector Support Program II (WSSP II)

On 20 May 2025, Honorable Ericah Shafudah, Minister of Finance of the Republic of Namibia, Mr. Abraham Nehemia, CEO of NamWater, and the German Development Bank, KfW, with Ambassador of the Federal Republic of Germany to Namibia, Dr. Thorsten Hutter, signed a loan agreement in the amount of NAD 1.5 billion. The project is co-financed by the German Development Cooperation, through KfW Development Bank, by means of a concessional loan in local currency, and is intended to fund the construction and rehabilitation of key water infrastructure in Namibia.

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. This results in a highly sensitive water supply situation for the entire country which requires precise demand management, management of existing water resources as well as urgent development of new ones. KfW Development Bank, on behalf of the German Ministry for Economic Cooperation and Development, is financing projects that will help safeguard Namibia’s water supply.

The project in detail:

Namibia Water Sector Support Program II

To assist Namibia in the rehabilitation and upgrading of its extensive bulk water infrastructure, KfW is providing a loan in the amount of NAD 1.5 billion to support the Namibia Water Sector Support Program II (WSSP II). As the water situation in Namibia is becoming increasingly precarious, the Namibian Government has developed an extensive list of priority water projects for the country. This list is intended to help safeguard Namibia’s water resources and water infrastructure, both existing and new, and the financial support will focus on high priority projects as identified by the Namibian Government. The projects will be carried out by NamWater as the project executing agency with the primary focus of projects being in the northern areas of Namibia. These include, but are not limited to, bulk pipeline schemes and distribution networks in the Central North as well as North-Eastern part of the country. They will also include water supply-related schemes under the auspices of the Ministry of Agriculture, Fisheries, Water and Land Reform.

The above water security projects are aimed at ensuring that the targets set in the National Developmental Plans of the country are achieved, thereby ensuring a long-term water supply security for Namibia.

German Development Cooperation 1990 - 2025

From 1990 until today, the funds from German Development Cooperation to Namibia 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.

“German Ambassador to Namibia, Dr. Hutter, expressed his appreciation for the serious commitment to and investment in the water sector in Namibia. He noted that the projects to be financed will help support Namibia’s resilience to droughts by helping to reduce water losses and increase a long-term sustainable water supply for the country. Furthermore, he emphasized that Germany is proud and committed to continue the cooperation between Namibia and Germany on these crucial water projects and he looks forward to seeing the projects materialize”.

Quote by NamWater CEO, Mr. Abraham Nehemia:

“Water security is at the heart of Namibia’s development ambitions. This partnership with the Government of The Republic of Namibia and the Government of the Federal Republic of Germany through KfW strengthens NamWater’s capacity to deliver reliable and sustainable water services to all Namibians. The support will enable us to accelerate the development and rehabilitation of vital infrastructure that is critical to meeting current needs and securing future supply.”