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Publish Date : 14-Nov-2013

The African Development Bank Group (AfDB) and Namibia on Friday, November 8, 2013 signed a ZAR 2.9 billion (US $338 million) sovereign guaranteed loan to the Nambian Ports Authority (Namport) to finance the construction of the new container terminal at Port of Walvis Bay and a UA 1.0 million grant (US $1.5 million) to the Government of Namibia for logistics and capacity building complementing the port project loan. The project was approved by the AfDB Group in July 2013.

Namibia's Finance Minister and Governor for the Bank, Sara Kuugongwelwa-Amadhila, signed the loan guarantee and grant agreement on behalf the Government in Windhoek. Namport CEO Bisey Uirab signed the loan agreement on behalf of Namport, while Ebrima Faal, Regional Director of the AfDB's Southern Africa Resource Center (SARC), signed for the Bank.

In her intervention, Kuugongwelwa-Amadhila stressed the importance of the project and its contribution to one of the key development goals (the logistics pillar) of the National Development Plan which aims to position Namibia as a regional logistics hub by 2017. The Minister also thanked the AfDB for its support to the Republic of Namibia. "Our engagement with AfDB has benefited our country in many areas. Some of the projects undertaken with the assistance of the AfDB include roads and railway development projects as well as education infrastructure and capacity building.

As demonstrated by this project, cooperation with AfDB is not confined to sovereign borrowing, but can also address needs of State Owned Commercial Enterprises (SOEs) and the private sector. We encourage AfDB to continue to explore ways and means to mobilize resources to strengthen the Bank's support to middle-income countries. I also encourage the Bank to explore ways to expand its activities in the private sector and SOEs sectors."

For his part, the Namport CEO highlighted the importance of the project and expressed appreciation to the AfDB: "I wish to acknowledge the positive spirit and enthusiasm of the African Development Bank in engaging us for the financing of this project. The AfDB has been unwavering in its commitment to this project throughout the entire process… This terminal will triple our capacity leading to a direct improvement in throughput for this industry unleashing another $500 million [NAD] per year as value-added to our economy. This additional capacity will bring down the transport cost element of goods purchased in Namibia and our neighbouring countries. At present, the transport element represents some 14% of the total cost versus an international standard of only 5%." In his statement, Faal emphasized the developmental impact of the project: "This project is important for Namibia and for the Southern African Development Community (SADC) region.

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