| Work Detail |
The National Planning Commission of Namibia, in partnership with the Ministry of Mines & Energy (MME), Regional Electricity Distributor NORED Electricity, and the German Development Cooperation through KfW Development Bank, has signed a €7.5 million grant agreement (approximately NAD 150 million) to enhance access to electricity for households and small and medium enterprises in Namibia. The grant aims to bolster MME’s budget allocation for electrification efforts across Namibia, focusing on peri-urban on-grid and rural remote off-grid electrification in the North-East and North-West regions. Currently, rural electrification in Namibia is between 20-30%, with the overall electrification rate standing at approximately 55%. The new initiative seeks to address these gaps, particularly in areas far from the existing grid, where low population densities and dispersed settlements have historically impeded infrastructure development. The funding will cover the investment costs for new electricity connections, ensuring the long-term sustainability and economic viability of these expansions for NORED. By targeting a combination of peri-urban and remote off-grid connections, the project aims to generate sufficient income to maintain regular operations and maximize developmental impact. During the signing ceremony, Honourable Obeth Kandjoze, a senior government official, expressed his gratitude for the support from the German Government, highlighting the urgent need for such initiatives. “Recent census data suggests that the electrification rate in Namibia might be lower than 55%, particularly in rural and remote areas. This access-to-energy project is a critical initiative that will significantly augment the government’s efforts to expand energy access,” Kandjoze said. Penda Ithindi, Executive Director of the Ministry of Mines & Energy, echoed this sentiment, emphasizing the complementary nature of the NAD 150 million grant to MME’s electrification plans. “According to the Access-to-Energy Project plan, nearly 4,000 connections will be installed, providing energy access to 18,000 to 20,000 people, as well as supporting productive users,” Ithindi stated. The project has undergone comprehensive preparation, including technical, environmental, economic, and developmental assessments, along with extensive stakeholder engagement to identify the most suitable locations for electrification. NORED’s Acting CEO, Toivo Shovaleka, announced that with the signing of the agreements, the project is set to commence immediately, starting with the preparation of tender documents. Dr. Thorsten Hutter, the German Ambassador to Namibia, underscored Germany’s commitment to supporting Namibia’s development through sustainable projects. “The Access-to-Energy Project will combat energy poverty by expanding electrification in rural and peri-urban areas, thus promoting economic development and improving income opportunities,” Hutter stated. The project aims to achieve the installation of at least 2,910 new on-grid connections (minimum TIER 4) and 990 new off-grid connections (minimum TIER 3). Additionally, 400 kW of off-grid power capacities for mini-grids based on solar PV plus storage will be established. The project is expected to be completed by the end of 2026. Since 1990, German Development Cooperation has provided approximately EUR 1.6 billion (NAD 32.3 billion) in funding to Namibia. The current KfW portfolio includes 39 projects with a total volume of EUR 697.2 million (NAD 12.9 billion), with future projects amounting to around EUR 200 million (NAD 6.6 billion) in preparation. |
