The Government of Namibia, in partnership with NamWater and the German Development Bank (KfW), has signed a landmark N$1.5 billion (EUR 75 million) concessional loan agreement to boost national water security, informs the Namibia Economist. The funds will support the second phase of the Water Sector Support Programme (WSSP II), aimed at expanding access to safe water and building climate resilience through critical infrastructure upgrades.
The agreement was formalized this week by Minister of Finance Ericah Shafudah, NamWater CEO Abraham Nehemia, and a representative from KfW, in a ceremony witnessed by German Ambassador to Namibia Thorsten Hutter.
A flagship project within the programme, the Omundaungilo–Omutsegwonime Bulk Pipeline Scheme, will provide clean drinking water to over 27,000 people in the Ohangwena and Oshikoto regions
WSSP II will focus on constructing and rehabilitating bulk water infrastructure in Namibia’s central north and north-eastern regions. Key components include upgraded pipelines, reservoir systems, and small-scale desalination units to serve rural areas affected by water scarcity.
A flagship project within the programme, the Omundaungilo–Omutsegwonime Bulk Pipeline Scheme, involves the construction of 130 kilometres of new pipelines, development of production boreholes, and installation of reservoirs, booster stations, and treatment facilities. Once complete, it will provide clean drinking water to over 27,000 people in the Ohangwena and Oshikoto regions.
“This concessional loan agreement reflects Namibia’s commitment to finding innovative ways to fund critical infrastructure,” said Minister Shafudah. “With a favourable interest rate of 10.09%—2.3% below local market rates—and a 20-year repayment period including a five-year grace, it allows us to address urgent water challenges beyond the limits of the national budget. We are leveraging partnerships to deliver real impact for our people.”
The programme is designed not only to expand access but also to reduce water losses and promote sustainable water management practices, in line with national development goals.
German Ambassador Thorsten Hutter highlighted the broader significance of the initiative, saying: “These projects will not only improve Namibia’s resilience to droughts but also foster a more secure and inclusive water future for the country.”
For NamWater, the funding represents a critical step toward bridging infrastructure gaps. “This €75 million loan is not just funding, it’s a transformative investment in the future of water security for Namibia,” said CEO Abraham Nehemia. “It empowers us to act decisively in bridging the water access divide, particularly in underserved northern regions.”
As implementation moves forward, WSSP II is set to deliver long-term water solutions for thousands of Namibians, laying the foundation for a more equitable and climate-resilient future.
