Development Bank of Namibia (DBN) and Development Bank of Southern Africa (DBSA) have confirmed a loan of about N$2.6 billion finance for TransNamib.
The loan will be used for remanufacturing of rolling stock, acquisition of new rolling stock, modernization of the TransNamib Workshop, upgrading of signaling equipment, including spares and associated equipment.
DBN and DBSA have a long-standing relationship that is governed by a Memorandum of Understanding. The Memorandum enables both Banks to jointly participate in the financing of infrastructure projects in Namibia.
During the 2019 Investment Summit, in Windhoek, DBN and DBSA jointly pledged N$8 billion towards infrastructure development in Namibia. Among these was the pledge of about N$2.6 billion towards TransNamib.
According to Martin Inkumbi, the CEO of DBN, the success of Harambee Two places emphasis on the positioning of rail as a catalyst for the growth of economic activity.
The DBSA Head of SADC Coverage, Davies Pwele, further emphasized, in line with DBSA’s mandate of regional integration, that 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 (ACFTA) which is now in effect.
The partnership between DBN, DBSA, and TransNamib is a testimony of what can be achieved in the delivery of critical infrastructure, starting from financing of feasibility studies to investment, Pwele concludes.
