Omuthiya: Germany's KfW Development Bank has granted N.dollar 500 million to the Namibian government for the construction of roads, marking the sixth phase of a major infrastructure development initiative.
According to Namibia Press Agency, the funding, provided through the German Federal Ministry for Economic Cooperation and Development, was announced by KfW Director Beatrice Lucke during Monday's groundbreaking ceremony for the Omuthiya-Elambo DR 3654 road construction project.
The investment will support the construction of seven roads totaling over 250 kilometers in northern Namibia, with a strong emphasis on local participation and employment creation. The project prioritizes Namibian involvement, with five consulting contracts awarded to local engineering firms and seven construction contracts to be implemented by Namibian-owned companies.
Lucke emphasized the employment benefits of the labor-based approach, stating that "for a 100 km of road constructed, 1000 local workers can find temporary work." The initiative is designed to inject cash into rural economies while providing skills development and knowledge transfer to communities.
Beyond road infrastructure, KfW's support extends across multiple sectors in Namibia, including backing for National Parks and the Ministry of Environment, Forestry and Tourism, with visible developments at Etosha National Park. The partnership also encompasses critical water infrastructure, such as the water pipeline from Calueque dam via Oshakati to Omuthiya, and renewable energy initiatives.
"We are currently financing the first large-scale solar park in the South," Lucke announced. Lucke noted that these infrastructure developments form part of joint efforts to develop rural areas, with the roads serving as "arteries to make movement, trade and social inclusion possible."
German Ambassador to Namibia Thorsten Hutter highlighted the longstanding cooperation between the two countries in addressing infrastructure challenges. "Germany supports Namibia in overcoming road challenges, and we have been jointly enlarging the network of district roads in the central north," Hutter said.
The current funding phase specifically targets 250 kilometers of district roads across the Ohangwena, Oshikoto, and Omusati regions. The labor-based construction methodology not only addresses critical infrastructure needs but also provides immediate economic benefits through job creation and skills development, supporting broader rural development objectives across northern Namibia.