China's N$10bn loan still on table

12 September 2019 | Economics

The government is yet to take up the Chinese government offer to borrow up to N$10 billion through the Export-Import Bank of China.

It also appears that the government will not make a decision before next year at the earliest on whether to take up the loan or not.

The Chinese government made the offer at the Forum for China Africa Cooperation summit that was held in Beijing last year. It forms part of a US$60 billion pledge made to African countries by the Chinese government.

Namibia's portion of the money was earmarked for infrastructure projects and included the development of 400 houses as well as the expansion of Hosea Kutako International Airport.

Shedding light on the latest developments pertaining to the loan offer, ministry of finance spokesperson Tonateni Shidhudhu said feasibility studies were still being done before the government could make a final decision.

“Government has not yet drawn from this facility, due to uncompleted feasibility studies that are yet to be concluded hopefully during 2020,” said Shidhudhu.

“As per the signed memorandum of understanding on cooperation mechanism between the Export-Import Bank of China (Exim Bank) and the ministry of finance, the government of the People's Republic of China, through Exim Bank, provided a funding provision of N$10 billion to the government of the Republic of Namibia for development projects,” he added. Media reports last year suggested that the government's request for funding for infrastructure projects was accepted at the summit by the Chinese government.

Under the arrangement, the Exim Bank would provide a government concessional loan and preferential export buyers' credit.

Procedurally, the Exim Bank would collect project information and launch a pre-lending investigation. The Exim Bank would then conduct project evaluation and submit reports to relevant government authorities.

For a government concessional loan, based on the framework loan agreement signed between the Chinese government and the government of the borrowing country, the Exim Bank signs a project loan agreement with the borrower.

For preferential export buyer's credit, the Exim Bank signs a project loan agreement upon approval by the relevant government authorities, the Chinese lender explains on its website.

Shidhudhu said Namibia could benefit significantly from the offer, as this was one of the cheapest forms of funding long-term projects with a long repayment period.

Namibia's loan exposure to China stood at N$1.7 billion as at September 2018, with concessional loans making up the bulk at N$1.3 billion and the remainder coming in the form of interest-free loans.


Similar News


RFA spend massive amounts

1 day - 06 August 2020 | Economics

The Road Fund Administration (RFA) has over the past five-years allocated N$ 177.2 million to the City of Windhoek towards road maintenance and traffic law...


2 days ago - 05 August 2020 | Economics

Jo-Maré Duddy - A mere N$10 million versus N$170 million.These two figures in the development budget for 2020/21 in many’s opinion will summarise government’s skewed...

EU provides support to Zimbabwe

2 days ago - 05 August 2020 | Economics

The European Union (EU) announced that it had further increased its support towards the most vulnerable in Zimbabwe by providing an additional 14.2 million euros...

Zim street vendors hit by virus clampdown

2 days ago - 05 August 2020 | Economics

Tonderayi Mukeredzi - Martha Kahari was already struggling to make ends meet after Zimbabwe's coronavirus lockdown forced her to stop selling second-hand clothes and tomatoes...

Assessing the pandemic impact

3 days ago - 04 August 2020 | Economics

The Namibia Statistics Agency (NSA) has embarked on its second-round survey to determine the effects Covid-19 has had on businesses in key economic sectors across...

Kunene commits on service delivery

4 days ago - 03 August 2020 | Economics

The most fundamental reason for the existence of any government is to ensure the provision of housing and land to its people.This was said by...

Kunene commits on service delivery

4 days ago - 03 August 2020 | Economics

The most fundamental reason for the existence of any government is to ensure the provision of housing and land to its people.This was said by...

Residents demand speed humps

1 week ago - 31 July 2020 | Economics

A concerned group of young residents at Rundu called for the erection of speed humps along the Maria Mwengere road, especially in front of a...

Kunene regional budget increases

1 week ago - 31 July 2020 | Economics

The Kunene regional health department reported that the novel coronavirus has instilled fear in the community and also increased the regional budget expenses.Kunene governor, Marius...

CoW complied with requirements

1 week ago - 30 July 2020 | Economics

The City of Windhoek complied with all requirements to be granted a Telecommunications Service Licence, Communications Regulatory Authority (CRAN) board chairperson Mihe Gaomab said.Gaomab in...

Latest News

Border bribery syndicate exposed

7 hours ago | Crime

OGONE TLHAGE WINDHOEK Namibian authorities have widened their investigation into the case of Immanuel David, who allegedly paid bribes to various individuals so...

Shame on Namibian football ‘gods’

7 hours ago | Opinion

Like the body of a disgraced African dictator awaiting official communication on what is to be done with it, Namibian football has been lying in...

Fishrot's De Klerk washes dirty...

7 hours ago | Justice

RONELLE RADEMEYER WINDHOEK Marén de Klerk, the lawyer who left Namibia amid allegations that millions of dollars from the Fishrot bribery scandal had passed...

She’s got style

7 hours ago | Art and Entertainment

MICHAEL KAYUNDE WINDHOEK Launched in 2018, stylist Yverischka Ivertor Bok is happy with the pace at which her brand,...

10th NAMAs go virtual

7 hours ago | Art and Entertainment

STAFF REPORTER WINDHOEK The Namibian Annual Music Awards executive committee recently announced that the 10th NAMAs will be delivered online. The event will...

Keeping it real

7 hours ago | Art and Entertainment

Awards season is finally in full swing, and this is testament to the stories carried in this edition.After being in suspense for a few months,...

Boy accused of murder granted...

7 hours ago | Justice

NAMPAGOBABISA 14-year-old boy who allegedly stabbed an 18-year-old to death at the Kanaan A informal settlement in Gobabis this past Saturday has been granted bail...

Pangolin traffickers nabbed

7 hours ago | Crime

ELLANIE SMITWINDHOEKIn the first cooperation between US law enforcement and the Namibian police, four suspected pangolin traffickers were recently arrested in Namibia.According to a statement...

Germany should fund Namibia's land...

7 hours ago | Columns

Henning Melber Nearly 30 years after starting land reform, Namibia's distribution of land ownership is still skewed. This is a colonial legacy. It is high...

Load More