WINDHOEK, March 31 — The liquidation of Namibia’s national rail operator, TransNamib is not on the table, a government official said Wednesday at an event in Windhoek.
Namibia’s Minister of Works and Transport, John Mutorwa said this in his keynote address at the confirmation announcement of a loan of about 2.6 billion Namibia dollars (about 179 million US dollars) for the struggling rail operator.
“This is indeed a major milestone for this national company, as it will bring much-needed strategic and monetary support towards the vision of transforming TransNamib into a profitable company,” he said.
The loan from the Development Bank of Namibia (DBN) and Development Bank of Southern Africa (DBSA) will be used for remanufacturing of rolling stock, acquisition of new rolling stock, acquisition of 10 new locomotives, modernization of the TransNamib Workshop, upgrading of signaling equipment, including spares and associated equipment.
According to Mutorwa, the announcement comes almost four years after the company’s Integrated Strategic Business Plan was approved by the cabinet, but fulfilling the strategic vision was attainable due to funding.
“The ultimate success and its ability to become a logistics hub for southern Africa and beyond heavily depends on the country having an efficient rail infrastructure,” he said.
The DBSA Head of SADC Coverage, Davies Pwele said that in line with DBSA’s mandate of regional integration, the repositioning of TransNamib as a logistics hub comes at a critical time when the SADC rail network needs to gear itself to respond to the Africa Continental Free Trade Agreement.
TransNamib CEO Johny Smith said the rail operator is starting a new chapter and hopes the funding will fulfill its strategic vision.
During the 2019 Investment Summit, in Windhoek, DBN and DBSA jointly pledged 8 billion Namibia dollars to infrastructure development in Namibia. Among these was the pledge of about 2.6 billion Namibia dollars to TransNamib. (Xinhua)
Liquidation of Namibia’s national rail operator not on the table: official
