A New Road for Namibia: Germany Supports National Transport Infrastructure with Beneficial Loan of NAD 370 million

The Minister of Works and Transport, Hon. Veikko Nekundi, the Governor of the Erongo Region, Hon. Dr Nathalia /Goagoses, and the Ambassador-Designate of the Federal Republic of Germany, H.E. Thomas Wimmer, celebrated the official opening of the Trunk Road 7/1 after rehabilitation and upgrading on the 2nd of October 2026.

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A stretch of 31.2 km was rehabilitated and extended to a 2+1 carriageway between Karibib and Usakos. This included, besides new surfacing, the addition of dedicated overtaking lanes as well as widened shoulders for improved road safety and ease of congestion on this important stretch of the Namibian road network. The section of road is part of several logistic corridors, linking other SADC countries to the Port of Walvis Bay. It therefore contributes to Namibia’s ambitions to become a regional Logistics Hub and improving economic development in the region.

The newly upgraded road section was supported through the Namibian - German Development Cooperation. The German Federal Ministry for Economic Cooperation and Development (BMZ), through KfW Development Bank, provided an interest reduced loan to the amount of NAD 372,6 million (approximately 20 million Euros) with a repayment period of 10 years. It forms part of the Support Programme for Road Rehabilitation, strengthening the Namibian Government to reach its goals under the respective NDPs. The Programme has three phases including contributions to the upgrading of the Windhoek – Okahandja corridor, rehabilitation of a section of the B1 between Keetmanhoop and Mariental as well as the section between Karibib and Usakos. The loan amounts total up to NAD 1.3 billion (EUR 80 million respectively).

The total contract value of the newly opened road section is NAD 498,6 million. In addition to the main road works, the contract included upgrades to the town sections, comprising new parking bays in Karibib and a roundabout in Usakos. Works are still ongoing to connect the hospital in Usakos via a bridge over the Kanone River.

The main contractor, Zhongmei Engineering Group, was supported by the following Namibian Partner Companies:
• Tangeni OM Trading Enterprises cc;
• West Trading cc;
• INO Investment Holding (Pty) Ltd; and
• Alughodi Engineering & Construction cc.

The Namibian Partner contractors’ share is estimated at 25%. Other SME contractors were also engaged to provide road-marking, cleaning and security services. The project has promoted local employment, with more than 500 people employed to date, 25% of whom are women. Construction materials, including cement, steel, fuel, interlocks, aggregates and kerbing, were also procured locally.

Namibian German Development Cooperation

Since Namibia’s independence, the German Federal Ministry for Economic Cooperation and Development (BMZ), through KfW Development Bank, has been supporting the expansion of the national road network through grants for labour-based and access roads, as well as concessional loans for major transport corridors. In close cooperation with the Roads Authority, more than 1700 km of roads (trunk, district and access) have been co-financed, contributing to Namibia’s objective of a well-functioning and efficient transport system linked to key economic hubs, including the Port of Walvis Bay.

Overall, the total financial and technical support extended by Germany since 1990 exceeds EUR 1.6 billion (approximately NAD 32 billion). The KfW portfolio under current implementation comprises a total funding volume of approximately EUR 580 million (approximately NAD 11,6 billion), while future projects with a total funding volume of approximately EUR 35 million (approximately NAD 700 million) are under preparation