Africa-Press – Namibia. THE German and Namibian governments have signed a financial cooperation agreement on interest-reduced loans, to the tune of N$2,7 billion.
Finance minister Iipumbu Shiimi and German ambassador to Namibia Herbert Beck inked the deal, which covers three areas – SME funding, water sustainability and renewable energy.
At the signing event, Beck said these areas are important, and the investment would go a long way in making a difference for Namibians.
The agreement was necessary for the individual loans to be extended to the players that will disburse these loans.
About 20 million euros will go to NamPost’s lending arm PostFin, 75 million euros to NamWater, and the remaining 66 million euros for NamPower.
The loan agreements will be drawn up between the respective entities, with the German bank, KfW Development Bank.
Germany has been a key player in funding many of Namibia’s key sectors, and according to Beck, this is set to continue.
At the event, Shiimi said the government was grateful for the low cost loans, especially in the three key areas that are essential for economic recovery.
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