N$2.7 bln Financial Cooperation Agreement signed

Namibia and Germany signed a Financial Cooperation Agreement on interest-reduced loans to the tuned of about N$2.7 billion (161 million Euros) on Friday. The agreement, which was signed by finance minister Iipumbu Shiimi and German Ambassador Herbert Beck, comprises three major areas of German-Namibian development cooperation.Firstly, in includes the NamPost funding facility in support of Micro and Small Enterprises (MSE) and low-Income Households with up to N$334 million. The aim is to provide microcredits to predominantly rural customers, mainly women. The interest-reduced local currency loan to NamPost/PostFin addresses the high demand for credit of vulnerable groups and provides access to loans specifically in order to alleviate the negative consequences of the Covid-19 pandemic.Secondly, N$1.25 billion is reserved for the ongoing Namibian water sector support program. The program is aiming at the implementation of new water projects to improve access, quality and sustainability of water supply and sanitation in Namibia. Against the backdrop of more frequent droughts, the program strives also to reduce water losses thereby contributing to resource conservation and increasing the resilience of the population.Lastly, N$1.1 billion will go towards the renewable energy program aims at supporting NamPower to expand its production capacities of renewable energy. The project will establish the first major windfarm in Namibia with a capacity of up to 40 MW and is located 30 km North of Rosh Pinah.The KfW Development Bank will be responsible for implementation.Ambassador Beck said: “I am confident that the agreed areas of our bilateral financial cooperation will make a real difference to the people of Namibia, as they will contribute directly to the implementation of the Harambee Prosperity Plan, the government‘s economic recovery and development plan.”Meanwhile, Shiimi said “Namibia is very grateful for the continued support from the Federal Republic of Germany. The agreed financial support is for strategic investments in critical areas that will help the economy to recover and it will come in handy to help us build back better.” -phillep@nmh.com.na

N$2.7 bln Financial Cooperation Agreement signed

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N$2.7 bln Financial Cooperation Agreement signed

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