31/03/2022
DBSA and DBN fast-track TransNamib with N$2.6 billion
Business Reporter
THE Development Bank of Namibia (DBN) and Development Bank of Southern Africa (DBSA) have confirmed a loan of about N$2.6 billion finance for TransNamib.
The loan announcement may just be the saving grace for the national rail company after it was issued a letter by Challenge Air SA, which demanded that TransNamib pay its debt of N$161 million to them or face a liquidation court battle.
Martin Inkumbi, the CEO of DBN, stated that the loan will be used for remanufacturing of rolling stock, acquisition of new rolling stock, modernisation of the TransNamib Workshop, upgrading of signalling equipment, including spares and associated equipment.
DBN and DBSA have a long-standing relationship that is governed by a Memorandum of Understanding. The Memorandum enables both Banks to jointly participate in the financing of infrastructure projects in Namibia.
During the 2019 Investment Summit in Windhoek, DBN and DBSA jointly pledged N$8 billion towards infrastructure development in Namibia. Among these was the pledge of about N$2.6 billion towards TransNamib.
Inkumbi stated that the success of Harambee Two places emphasis on the positioning of rail as a catalyst for the growth of economic activity.
The DBSA Head of SADC Coverage, Davies Pwele, further emphasised, in line with DBSA’s mandate of regional integration, that the repositioning of TransNamib as a logistics hub comes at a critical time when the SADC rail network needs to gear itself to respond to the Africa Continental Free Trade Agreement (ACFTA) which is now in effect.
The partnership between DBN, DBSA and TransNamib is a testimony of what can be achieved in the delivery of critical infrastructure, starting from financing of feasibility studies to investment, Pwele concluded.
Photo for illustrative purposes: TransNamib
