Timely financial boost for Transnamib, as SADC rail network gears to respond to the AfCFTA
National rail operator TransNamib will receive a N$2,6 billion loan from the Development Bank of Namibia (DBN) and Development Bank of Southern Africa (DBSA).
The loan from DBN and DBSA will be used for remanufacturing of rolling stock, acquisition of new rolling stock, acquisition of 10 new locomotives, modernization of the TransNamib Workshop, upgrading of signalling equipment, including spares and associated equipment.
The Minister of Works and Transport, John Mutorwa in his keynote address at the confirmation announcement of the loan on Wednesday said this is indeed a major milestone for the national company, as it will bring much needed strategic and monetary support towards the vision of transforming TransNamib into a profitable company.
“The ultimate success and its ability to become a logistics hub for southern Africa and beyond heavily depends on the country having an efficient rail infrastructure,” he said while thanking the financiers for the bold move.
The DBSA Head of SADC Coverage, Davies Pwele meanwhile emphasized that, in line with DBSA’s mandate of regional integration, 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.
TransNamib CEO, Johny Smith said the rail operator is starting a new chapter and hopes the funding will fulfil its strategic vision.
During the 2019 Investment Summit, in Windhoek, DBN and DBSA jointly pledged N$8 billion to infrastructure development in Namibia. Among these was the pledge of about N$2.6 billion to TransNamib.