Chamwe Kaira
Namibia must urgently shift to a rail-anchored logistics model to secure its long-term position as a regional trade corridor, economist Almandro Jansen of Simonis Storm has said.
Jansen said Namibia’s strategic value does not lie in the size of its economy but in its location, institutions and operational reliability. Positioned on the Atlantic coast, Namibia offers the shortest maritime route linking Southern and Central Africa to European and North American markets through the Port of Walvis Bay.
He stated that relatively strong governance, clear regulations, transparent customs processes, and stable port operations strengthen this advantage.
These factors reduce logistics risk for global exporters.
Jansen said Namibia does not need to produce commodities to benefit from trade flows. Transit trade in Walvis Bay generates income through port fees, rail tariffs, fuel sales, logistics, warehousing, insurance and professional services. It also creates relatively high-productivity jobs.
“These benefits are scalable and less exposed to commodity price volatility than extractive industries,” he said.
He added that increased transit trade improves Namibia’s balance of payments through higher service exports. It also reduces long-term fiscal pressure by moving heavy freight from roads to rail, cutting road maintenance costs.
However, Jansen warned that geography alone is no longer enough. As other African corridors invest heavily in rail infrastructure, Namibia’s continued reliance on road transport for hinterland trade could weaken its cost advantage.
He said competing rail corridors offer lower costs, higher capacity and more predictable services. Once exporters commit to these routes, switching becomes expensive, and trade flows can be locked in for decades.
To remain competitive, Jansen said Namibia must shift from road-led transit to rail-enabled corridors. In the short term, inland dry ports and logistics hubs could help consolidate cargo, speed up customs processes and reduce pressure on roads.
In the medium term, existing rail lines linking inland regions to Walvis Bay need upgrades to handle heavier axle loads, higher traffic volumes and improved signalling.
Over the longer term, new rail corridors linking northern and northeastern borders to the national rail network are needed to anchor Namibia in regional value chains.
Jansen said stronger rail infrastructure would also support Namibia’s position as an environmentally, socially and governance-aligned transit corridor.
Rail transport has a lower carbon footprint per tonne-kilometre, improves traceability and reduces governance risk, which matters to global mining companies and commodity traders.
For critical minerals, he said corridor choice is becoming a strategic decision as buyers face greater scrutiny from regulators and investors.
Namibia can position Walvis Bay as a low-risk Atlantic gateway for responsibly produced African minerals and agricultural exports.
Beyond infrastructure, Jansen stressed the need for active corridor diplomacy. Long-term transit agreements with Zambia, the Democratic Republic of Congo and Botswana could secure cargo volumes, align customs systems and provide tariff certainty.
He said Namibia’s window is narrowing as rival rail corridors move ahead, and the country’s future role as an Atlantic gateway will depend on how quickly it aligns rail development with regional trade trends.
Caption
Namibia offers the shortest maritime route linking Southern and Central Africa to European and North American markets through the Port of Walvis Bay.
- Photo: Namport
