Power, water, homes - the building blocks of growth
Life depends on three essentials: electricity to power communities, water to sustain people and industries, and homes where families can build a future. These are not just services; they form the backbone of jobs, small businesses and national growth.Namibia currently relies heavily on imported electricity. In October 2024, official statistics showed that the country imported between 270 and 488 MWh of power, meeting up to two-thirds of national demand. This dependence leaves Namibia exposed to external price and supply shocks. To address this, plans are underway to expand local generation and grid infrastructure between FY25 and FY27.
In May 2024, the World Bank approved Namibia’s first energy sector loan of US$138.5 million to strengthen the transmission line between Auas and Kokerboom and install a utility-scale battery storage system. This is more than an engineering upgrade - it’s a crucial step in stabilising the grid as renewable energy sources grow. Unlike conventional energy, renewables cannot instantly fill power gaps caused by plant failures or sudden demand shifts. Prioritising grid resilience therefore enhances long-term energy security.
Vital investment
Water infrastructure is also being expanded. With demand in the Erongo region outpacing supply, a second desalination plant (20 million m³/year) has been approved, expected to come online in early 2027. This investment is vital to support mining, green hydrogen projects, and the expansion of coastal towns.
Housing, meanwhile, remains a pressing social and economic issue. Over 120 000 people are on the National Housing Enterprise waiting list. The shortage highlights both a challenge and an opportunity for investment in affordable housing models that reflect local income realities.
The key question is funding. Public budgets alone cannot meet the scale of these infrastructure needs. This is where private capital plays a pivotal role. Regulations require Namibian pension funds and insurers to invest part of their assets domestically, including in unlisted investments via Special Purpose Vehicles (SPVs) and Unlisted Investment Managers (UIMs). With sound governance, these mechanisms channel local savings into essential infrastructure and housing projects.
The benefits are far-reaching: reliable electricity sustains businesses, secure water ensures industrial continuity, and adequate housing improves livelihoods. For institutional investors, real assets such as infrastructure and property provide stable, inflation-linked returns over the long term. Through its infrastructure, housing, and commercial property funds, Old Mutual Investment Group (Namibia) is helping turn Namibia’s infrastructure needs into viable, high-impact investment opportunities.
* Christoff Bauernschmitt is a Senior Investment Professional at the Old Mutual Investment Group.