Namibia will require N$29.43 billion (US$1.76 billion) to transition towards full energy independence and universal electricity access by 2040, according to the Ministry of Industries, Mines and Energy.
The ministry said the funding requirements are set out in the newly launched National Energy Compact for Namibia, which outlines a total investment need of N$29.43 billion (US$1.764 billion).
Of this amount, N$22.61 billion (US$1.353 billion) is expected to be financed by the public sector to support infrastructure development and last-mile connectivity, while N$6.87 billion (US$411 million) is to be mobilised through private sector participation.
The ministry noted that the figures exclude the Baynes Hydropower Project, which has an estimated cost of N$26.74 billion (US$1.6 billion). While N$12.00 billion (US$718 million) has already been secured, a funding shortfall of N$17.55 billion (US$1.05 billion) remains to be filled by 2030.
According to the ministry, the Compact forms part of Mission 300, a joint initiative by the World Bank and the African Development Bank aimed at mobilising funding to connect 300 million people to electricity across Africa.
“This Compact was developed through extensive engagements and consultations with various stakeholders, including development partners, the private sector and civil society, to foster partnerships crucial for achieving the Compact’s ambitious goals,” the report said.
The ministry said a key focus of the plan is expanding domestic electricity access and clean cooking solutions. By 2030, Namibia’s national electrification rate is targeted to rise from 59.5% to 70%, with 210,000 new households to be connected. Of these, 175,000 households are expected to be connected to the national grid, while 35,000 will be served through off-grid solutions.
The strategy also aims to address health and environmental challenges associated with traditional fuels by expanding access to clean cooking technologies to 200,000 households, increasing coverage from 48.5% to 61%.
In addition, the ministry said the Compact targets an increase in the share of renewable energy in the national energy mix from 54% to 70% by 2030. This will be achieved through the addition of 454 MW of new capacity from solar, wind, hydro and biomass sources, raising total installed capacity to 1,149 MW and significantly reducing reliance on electricity imports, which currently account for more than half of annual demand.
“The Namibian government aims to position the energy sector as a catalyst for the socio-economic development of the country and the SADC region, creating jobs, skilling youth, empowering women and supporting local communities in the vicinity of the planned projects,” the report said.
Beyond domestic supply, the ministry said Namibia is positioning itself as a regional energy hub through the development of the Zimbabwe–Zambia–Botswana–Namibia interconnector and the Angola–Namibia interconnector, which will strengthen the country’s integration into the Southern African Power Pool.
“This will be further enhanced by Namibia acting both as a source of clean, abundant energy and as a conduit to facilitate north–south energy flows through planned transmission interconnectors,” the report said.
