Namibia’s electrification push needs N$30bn
Namibia will need to raise close to N$30 billion in funding for electricity infrastructure projects to meet its target of electrifying 200,000 households by 2030 under the National Energy Compact strategy.In addition to expanding access, the strategy aims to reduce reliance on electricity imports — currently estimated at 60% — by increasing domestic generation and targeting 80% energy self-sufficiency.
Significant capital spend
“Meeting the targets of the Compact is estimated to cost US$1.76 billion (N$29.1 billion), with US$411 million (N$6.8 billion) expected to be mobilised through public sector sources. The remaining funding requirement at this stage is estimated at US$1.05 billion (N$17.4 billion), to be mobilised from the private sector through investment commitments,” the strategy document said.
The document also notes that additional funding will be required for the development of the Baynes Hydropower Project, currently estimated to cost N$26.5 billion. The project will be jointly implemented by the governments of Namibia and Angola and aims to develop a 600 megawatt (MW) mid-merit and peaking power station.
“Funding will also be required for the Baynes Hydropower Project, presented separately from the Compact due to its scale, and currently estimated at US$1.6 billion (N$26.5 billion), potentially to be financed through public financing mechanisms,” the strategy said.
Investor-Friendly environment
The government said it is committed to securing the required funding by creating a more favourable investment environment.
“The government is focused on mobilising significant public and private sector financing by continuing to improve the investment climate, strengthening local stakeholder engagement and capacity through training, and enhancing data collection systems to support informed energy planning and decision-making,” the document said.
Several projects have been identified to support Namibia’s electrification and generation goals. These include the Baynes project, which could add up to 440MW to the national grid and for which a feasibility study has been included; the 40MW Otjikoto biomass project currently under construction; the 100MW Rosh Pinah solar photovoltaic (PV) project; the 20MW Khan PV project, also under construction; and the 50MW Cerim wind project, which is under construction.
Mission 300
Mission 300 is a joint initiative by the World Bank Group and the African Development Bank aimed at connecting 300 million people in sub-Saharan Africa to electricity by 2030. Each participating country develops a national “compact” — a detailed, data-driven roadmap outlining sector reforms and investment needs — with Namibia’s Compact anchored in the Sixth National Development Plan (NDP6).