Germany will allocate N$380 million to support Namibia’s efforts in closing infrastructure and technical capacity gaps, particularly in urban and peri-urban areas. 

The funds will focus on formalizing land ownership and ensuring decent housing for residents in informal settlements.

The Namibia Planning Commission has signed three agreements with Germany to support key development projects. 

A N$133 million urban development fund will boost growth in urban areas, while  the N$191 million climate-resilient water supply project will develop the Ohangwena Groundwater system in northern Namibia over the next four years. 

Additionally, a N$57 million programme will strengthen the water sector through capacity building and training initiatives.

The German development cooperation’s support for urban development is a relatively new focus, compared to water projects.

In 2022, the first grant agreement of N$115 million was signed for urban development and today marked the signing of a second project aimed specifically at upgrading informal settlements.

Namibia is facing rapid urbanization with its urban population growing by 65,5% between 2011 and 2023, leading to the expansion of informal settlements around Windhoek and other urban areas. 

Earlier this year, the Ministry of Finance and Public Enterprises tabled a N$2.6 billion budget for the 2024/25 fiscal year, which includes N$141 million for transforming the Aus and Lüderitz local authorities. 

This funding aims to enhance services in response to the growing population, driven by oil and gas exploration as well as green hydrogen activities in the region. 

This is just one part of a broader support plan for Namibia by Germany, demonstrated by the newly signed agreements.