Finance Minister, Iipumbu Shiimi and Ambassador Herbert Beck of the Federal Republic of Germany on Friday signed a financial cooperation agreement on interest-reduced loans between the two countries.

According to a joint media statement here, the total amount of the agreement is N.dollars 2.7 billion dollars and comprises three major areas of the German- Namibia development cooperation.

These areas are the NamPost Funding Facility in support of Micro and Small Enterprises and low-income households in overcoming the COVID-19 pandemic which will be funded up to N.dollars 334 million.

Another area is the water sector support program which benefits N.dollars 1.25 billion while the renewable energy program gets N.dollars 1.1 billion, the statement read.

The Nampost Funding Facility aims to provide microcredits to predominantly rural customers mostly women and addresses the high demand for credit from vulnerable groups, while the water sector support program intends to make a direct contribution to Namibia’s adaptation to climate change.

‘The program aims at the implementation of new water projects to improve access, quality and sustainability of water supply and sanitation in Namibia,’ it said.

The renewable energy program will support NamPower to expand its production capacities of renewal energy.

Meanwhile, in the media statement, Beck said he is confident the agreed areas of the bilateral financial cooperation will make a difference in the lives of the Namibian people.

On his part, Shiimi said Namibia is grateful for the continued support from Germany as the agreed financial support is for strategic investment in critical areas that will enable the economy to recover.

To date, German development cooperation with Namibia amounts to N.dollars 26.8 billion.

Source: The Namibian Press Agency