Justicia ShipenaÂ
Namibia has yet to fully use a N$2 billion loan from the African Development Bank (AfDB) for massive transport infrastructure.
With only six months left before the loan disbursement deadline on 31 December 2025, more than N$110 million remains undisbursed.
The latest Implementation Progress and Results Report from the AfDB shows that Namibia has used just over 94% of the approved loan amount as of April 2025.
This implies that the government can only access the remaining funds prior to the loan’s expiration.
The government must fast-track activities to avoid losing the remaining money.
The remaining work needs quick action to ensure full use of the loan before it closes at the end of this year.
The first disbursement of the funds was made in June 2018.
The project is jointly financed by the AfDB and the Namibian government, with a total cost of N$5.55 billion.
Namibia is contributing over N$3.5 billion.
The government is the principal borrower, while the ministry of works and transport acts as the executing agency.
The loan was approved in 2017 to support the Namibia Transport Infrastructure Improvement Project.
The project aims to improve key road and rail links to help Namibia become a regional logistics hub under Vision 2030.
In March of this year, the works and transport minister Veikko Nekundi cancelled TransNamib’s plan to buy 23 new locomotives for N$1.7 billion.
He cited risks related to relying on a single foreign supplier.
Progress on rail upgrades has been praised.
The report revealed that the 210 km stretch between Walvis Bay and Kranzberg is complete, and train speeds on the upgraded rail line have reached the 80 km/h target.
The project has also trained over 350 young people and women in road and rail infrastructure maintenance, exceeding the target.
Of those trained, 36.5% were women. HIV/AIDS awareness campaigns and feasibility studies for future rail corridors were also completed.
However, road upgrades have faced delays.
The dual carriageway between Windhoek and Hosea Kutako International Airport is 87% complete.
Construction of traffic interchanges is at 75%, and currently, 17 km of the targeted 19.5 km freeway has been completed.
In 2023, reports confirmed delays in the construction of the Windhoek to Hosea Kutako International Airport freeway.
At the time, the full road was expected to open by either November 2024 or January 2025.
The project was rolled out in multiple phases.
Phase 1, covering 10 kilometres, was fully funded by the Namibian government. Phase 2A began in 2019, followed by Phase 2B in May 2021.
Phase 2A, which stretches 19.5 kilometres from Auasblick to the Dordabis interchange and is funded by the African Development Bank, had reached 78% completion by 2023.
The AfDB report pointed out risks from delays in procurement and outstanding financial audits.
The financial audit report due in September 2024 has not yet been submitted.
According to the AfDB, the main contractor on the freeway faces cash flow problems.
The African bank warned that this could delay smaller linked contracts and slow overall progress.
Despite this, corrective measures are underway.
The road works on the Windhoek-HKIA freeway are now expected to finish in September 2025.
The AfDB noted that the development objectives are still likely to be met.
However, final results depend on the pace of work in the coming months.
