Rural electrification strengthened with new partnership
The Deputy Minister of Industries, Mines and Energy (MIME), Gaudentia Kröne, formalised a Service Level Agreement through the Solar Revolving Fund (SRF) with the Central Northern Regional Electricity Distributor (CENORED), marking a major step in the national effort to expand electricity access for rural and peri-urban communities in Namibia.
This partnership focuses on enabling affordable grid connections for households and small businesses by introducing innovative financing methods.
The agreement directly supports the ministry’s 2025/2026 to 2029/2030 Strategic Plan, particularly Strategic Pillar 4 on Energy Sustainability, which emphasises sustainable access to energy for all Namibians. While Namibia’s grid infrastructure continues to expand, many communities remain unconnected due to the high cost of connections, which include transformers, poles, cables, labour and network contributions.
The SRF’s financing mechanism is designed to address these barriers by providing affordable, subsidised loans of up to N$150 000 at a five per cent interest rate over a maximum period of five years.
Under the agreement, the SRF will manage loan applications, conduct affordability assessments and disburse funds directly to CENORED. The electricity distributor will handle the technical aspects, including quotations, installations, connections and maintenance, ensuring seamless coordination between financing and service delivery.
“The Solar Revolving Fund has demonstrated that innovative financing can unlock real opportunities for our people,” said Kröne. She added that the SRF has financed approximately 5 800 renewable energy systems across Namibia, valued at around N$177 million, including solar home systems, water pumps and water heaters.
‘Next step’
“Today’s agreement marks the next step in expanding structured grid-connection financing,” she said.
According to Kröne, NORED became the first regional electricity distributor to sign a similar agreement in 2023, financing 149 grid connections valued at N$9.2 million. With CENORED joining the initiative, the ministry is strengthening national efforts to close the electrification gap.
“Electrification extends beyond household lighting. It supports entrepreneurship, enables learners to study in safe environments, facilitates refrigeration and productive activities for small businesses, and improves overall quality of life. Reliable electricity is also a driver of economic participation, job creation and inclusive growth,” she said.
“The revolving nature of the fund ensures sustainability, as loan repayments are recycled to finance new beneficiaries, expanding electrification without placing continuous strain on the national budget,” she said.
MIME and CENORED leadership expressed appreciation for the collaboration, emphasising that such partnerships are vital for accelerating access to modern energy services. Communities within CENORED’s operational regions — Otjozondjupa, Omaheke, Oshikoto and Kunene — will benefit directly from the agreement, which Kröne said will remove financial barriers and connect more households and businesses to reliable grid electricity.
“As we sign this Service Level Agreement today, we are reaffirming our commitment to equitable development, financial innovation, improved service delivery and inclusive socio-economic growth,” she concluded.
