In line with its ten-year strategy focusing on regional infrastructure development and integration, the African Development Bank (AfDB) has approved a R2.9-billion sovereign guaranteed loan to the Nambia Ports Authority (Namport) to finance the construction of a container terminal at the Port of Walvis Bay.

This followed the approval of an earlier $2.3-million AfDB grant to the Namibian government, in July, aimed at funding logistics and capacity-building – which included buying port equipment and training pilots and operators – for the developing Walvis Bay New Port container terminal.

The port project, which was expected to triple the container-handling capacity at the Port of Walvis Bay from 350 000 twenty-foot equivalent units (TEUs) a year to 1.05-million TEUs a year, aimed to boost competition among the ports and transport corridors in the region while reducing regional transportation costs.

The expected project outcomes included an improvement in port efficiency and a 70% increase in cargo volumes by 2020.

Namibia Finance Minister Sara Kuugongwelwa-Amadhila, who signed the loan guarantee and grant agreements on behalf of the government on November 8, emphasised the significance of the project as part of the country’s National Development Plan, which aimed to position Namibia as a regional logistics hub by 2017.

“Through this project, which potentially serves up to seven major economies in the Southern African Development Community (SADC) region, the bank is assisting in the diversification and distribution of port facilities on the south-west coast of Africa, providing the much-needed alternative for the region’s landlocked countries,” added AfDB director of transport and information communication technology Amadou Oumarou.

AfDB Southern Africa Resource Center regional director Ebrima Faal believed that the project would enhance international trade and regional integration, enabling the country to fully exploit its unique geographical location to facilitate trade to and from the region.

“With the high levels of youth unemployment, the bank’s support for Namport will greatly improve private-sector development and youth employment,” he commented.