By Benjamin Wickham
ABIDJAN, Ivory Coast, Nov. 1 – The Board of Directors of the African Development Bank Group has approved a $196.43 million loan to support Namibia in the implementation of the second phase of its Transport Infrastructure Improvement Project (TIIP).
This loan, sanctioned on October 31, 2023, represents 51.8 percent of the total project cost, with the Namibian government providing the remaining 48.2 percent.
The project aligns with Namibia’s long-term Vision 2030 by enhancing the country’s logistics value chain and addressing railway infrastructure bottlenecks. It will play a vital role in bolstering Namibia’s trade competitiveness in both the national and southern African subregion contexts.
The project involves the construction of 207 km of new rail track, running parallel to the existing line between Kranzberg and Otjiwarongo, using concrete railway sleepers and new rails. Additionally, it includes the construction of 16 bridges, the renovation of two stations, and the procurement of 55,000 tonnes of rails to build 518 kilometres of track. Among other components, it will modernize the railway signalling system along the Walvis Bay-Tsumeb line to enhance reliability, safety, capacity, and the overall performance of the railway system.
Recognizing the significance of robust rail connectivity for bulk cargo transport, this second phase of TIIP will expand the upgraded rail network to 417 km, following the Bank’s earlier support for the renovation of 210 km (Walvis Bay to Kranzberg) under the project.
Ms. Leïla Mokaddem, Director General for Southern Africa at the African Development Bank, remarked, “The project will bring about transformative change for Namibia’s competitiveness and assist in realizing the country’s Vision to become a regional logistics hub by 2030, thereby catalyzing development across neighbouring countries and the broader sub-region.” She further emphasized, “this project will also connect Namibia to Africa’s Copper Belt and facilitate regional railway connectivity.”
Having previously supported the expansion of the container terminal at the Port of Walvis Bay, the Bank is actively working to enhance Namibia’s regional integration by constructing essential port and rail infrastructure. This effort aims to connect Namibia with the wider region, facilitate the movement of goods, foster value chains, and promote trade.
The majority of the upgraded railway line traverses commercial agricultural land and various urban areas. This development will bring about a host of benefits, including faster, affordable, and secure rail transport, which will bolster regional and national development. Moreover, the shift from road to rail for bulk cargo transport is expected to reduce road maintenance costs.
The African Development Bank Group has been actively involved in Namibia since 1991. As of September 30, 2023, the Bank Group’s active portfolio in Namibia was estimated at approximately $687 million, allocated across 10 operations spanning six sectors: transport (15.6 percent), finance (35.1 percent), multi-sectoral (18.1 percent), water (15.3 percent), agriculture (7.9 percent), and the social sector (8 percent).
