World Bank endorses $138.5m loan for Namibia

The World Bank has announced on Monday its approval of a $138.5 million loan to Namibia to enhance its transmission network and incorporate renewable energy projects into its grid.

Namibia, one of the driest countries in Sub-Saharan Africa with abundant sunshine and wind, aims to establish itself as a hub for renewable energy. This ambition coincides with significant offshore oil and gas discoveries that have made the country a focal point for global exploration.

Satu Kahkonen, the World Bank’s country director for Namibia, stated in a press release that Namibia is uniquely positioned as a regional leader in transitioning towards a more sustainable and greener future.

The loan will be utilised by NamPower, the national electricity utility, to reduce its reliance on electricity imports from neighbouring countries. This marks the first energy project in Namibia financed by the World Bank.

In addition to new solar and wind projects, Namibia is also embarking on a $10 billion green hydrogen project, which is expected to export to the European Union upon completion.