Rural electrification a continuous priority

More than half of the budget allocation for projects within the mines and energy ministry has gone to rural electrification.
Ndamanguluka Nakashole
Ndama Nakashole

Figures in the national development budget show that over two-thirds of the N$65 million allocated to projects within the ministry’s energy infrastructure programme in 2018/2019 is going to rural electrification.

Rural electrification projects have over the years been receiving over half of the ministry’s projects’ allocation, a trend that is estimated to continue over the medium-term expenditure framework (MTEF) period.

Over the past two years, over 80% of budget allocations for energy infrastructure projects were allocated to rural electrification. Projects under this priority section of the economy received allocations of N$426.9 million and N$50.3 million over the past two years out of the budget allocation of N$500.9 million and N$54.6 million, respectively. Rural electrification projects received the most out of the total mines and energy project allocations of N$660.2 and N$78.4 million during this period, respectively.

During the MTEF period, budget allocations for rural electrification are estimated to be above 70% of the total programme allocation in the 2019/20 and 2020/21 financial years.

Energy infrastructure

During 2018/19, rural electrification has been boosted by a N$50 million allocation, which is over half of the total N$93.8 million allocation for the ministry’s energy infrastructure programme.

Apart from the fact that most of the energy infrastructure development budget allocation this year goes to rural electrification, the Namibia Energy Institute (NEI) gets the most for other projects within this subsector. The NEI has been allocated N$7 million, which is twice as much last year’s allocation.

“The NEI assists communities with expertise in renewable energy, electricity supply, petroleum oil and gas and nuclear sciences,” the NEI said.

The rest (N$8 million) of the money in this programme group is allocated for major power project development and off-grid electrification through a solar revolving fund.

Funding

Funding has picked up for energy infrastructure, as N$54 million was allocated last year from the huge N$500 million budget.

Overall, the total budget allocation for mines and energy projects increased from last year’s N$78.4 million. Of this allocation most of it (N$65 million) went to energy infrastructure projects. Whereas the rest went to ICT infrastructure expansion (N$3 million), mining industry integration and diversification (N$22.4 million) and public works and public property/asset management (N$3.4 million).

Most of the funds for the mining industry’s integration and diversification allocation are envisaged for seismology and ground geophysics, regional geological mapping and geological samples storage and databases, which received allocations of N$4 million, N$3.7 million and N$3.5 million, respectively. A total of N41.4 million was allocated for small-scale mining projects.

Of the public works and public property/asset management N$3.4 million allocation, most (N$3 million) goes to the renovation and upgrading of the ministry’s regional offices and staff houses. The rest (N$ 400 000) is allocated for the construction of a ministerial regional office in

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Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 414.72/OZ UP +1.55% | Copper US$ 5.04/lb UP +4.12% | Zinc US$ 3 059.30/T UP 0.11% | Brent Crude Oil US$ 84.28/BBP UP +0.60% | Platinum US$ 1 084.88/OZ UP +2.19%