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Germany loans N$1, 25 billion to Namibia

Germany loans N$1, 25 billion to Namibia

Zorena Jantze
THE Federal Republic of Germany entered into an inter-government bilateral agreement which will see Namibia receive N$1, 25 billion dollars to finance projects in priority arears such as securing water supply and infrastructural projects.

Pictured: Minister of Finance, Calle Schlettwein. Photo: Zorena Jantze

At the signing of the agreement with outgoing German Ambassador, Christain-Mathias Sclaga, Finance Minister, Calle Schlettwein stated that the agreements provides to targeted financial cooperation to finance development projects in the priority areas of national developmental, consistent with Namibia’s National Development Plans.
Schlettwein added that the agreement reflects the outcome of the Government-to-Government negotiations and provides for preferential loans for, inter alia, potable water supply and support programme for national road maintenance and rehabilitation.
“The funding for secure water supply is especially important, given the current pressing needs which are exacerbated by the prevailing drought national disaster.” Schlettwein noted.
The Agreement shall enable the Government of the Republic of Namibia or another borrower determined jointly by the two Governments to obtain preferential financing from Kreditanstalt für Wiederaufbau (KfW) for projects to support the national development agenda as set out in our National Development Plans in the following focus areas: natural resource management; sustainable economic development; and transport.
Germany remain a major Bilateral Development Cooperating Partner to Namibia despite our country having graduated into the class of Upper Middle Income Countries, which has led to other partners withdrawing, reducing or changing their mode of cooperation with Namibia.
Schlettwein concluded that the targeted loans uptake does not constitute additional borrowing, but means funding for budgeted projects. The disbursements provide for local currency arrangement, which eliminates foreign exchange risks.

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