Namibia has taken a major step forward in dealing with its ongoing water challenges by securing a N$1.5 billion concessional loan from the German Development Bank (KfW). This funding will support the Water Sector Support Programme II, which focuses on improving water infrastructure across Namibia’s northern regions where access to clean water remains a serious issue.
With unpredictable rainfall and recurring droughts becoming more common, the country’s water supply has come under increasing pressure. This 20-year loan comes with a 5-year grace period and offers an interest rate that is 2.3 percent lower than the market average making it a much needed and timely investment in the country’s future.
Speaking at the official signing ceremony, Finance Minister Ericah Shafudah highlighted the urgency of the situation.
“Namibia is currently faced with water scarcity and a dry climate due to unpredictable low rainfall. The situation is aggravated by recurrent drought conditions, which threaten water supply in the country,” she said.
She explained that the funding will be used for the construction, rehabilitation, and upgrading of bulk water infrastructure in northern Namibia, which has long struggled with reliable access to water.
One of the main projects under the programme is the Omundaungilo to Omutsegwonime Bulk Pipeline Scheme. This will involve 130 kilometers of new pipelines, boreholes, reservoirs, and water treatment facilities. Once completed, the project is expected to supply clean water to over 27,000 residents in the Ohangwena and Oshikoto regions something that will have a big impact on public health and local economic activity.
Other parts of the programme include replacing sections of the Oshakati to Ondangwa to Oshali to Omuthiya to Omutsegwonime pipeline, completing the Katima Mulilo Extension Phase 2 in the Zambezi Region, and installing small-scale desalination units to help make saline water drinkable in areas that need it most.
This loan marks an important partnership between Namibia and its development partners, aimed at securing long-term water access, supporting community health, and opening doors for economic growth in the regions that need it most.
For many people in the north, these improvements could be life-changing. They offer not just water, but peace of mind, dignity, and the chance to build more secure and sustainable futures.
