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.

OGONE TLHAGE

Similar News

 

Inflation slows down further

3 days ago - 14 November 2019 | Economics

Annual overall inflation in Namibia last month was 3.0%, down from 3.3% in September and 5.1% a year ago.Data released by the Namibia Statistics Agency...

Lifestyle audits kick off

1 week ago - 07 November 2019 | Economics

OGONE TLHAGE The ministry of finance is gunning after suspected tax defaulters by means of lifestyle audits.Tax commissioner Justus Mwafongwe told Namibian...

New cocoa deals help peasant farmers, but not enough

1 week ago - 06 November 2019 | Economics

David Esnault - The willingness of some multinational firms to pay a cost-of-living bonus for African cocoa planters is welcome but will not save many...

Debt relief a double-edged sword for S. Africans

1 week ago - 06 November 2019 | Economics

Emma Rumney - Solani Rivele, a single mother of four, earns about R800 a week but owes 100 times that amount in loans. Millions of...

Nigeria puts squeeze on oil majors

1 week ago - 06 November 2019 | Economics

Libby George - The Nigerian government has amended a bill that would render billions in planned offshore oil investments unprofitable and cut nearly 30% from...

N$2.5m salaries bailout for Agribusdev

2 weeks ago - 01 November 2019 | Economics

The agriculture ministry will seek treasury approval in order to divert N$2.5 million that will be used to pay Agribusdev staff, who are yet to...

N$54m lifeline for ailing NBC

3 weeks ago - 25 October 2019 | Economics

Finance minister Calle Schlettwein has emptied state coffers to the tune of N$54 million to bail out the Namibia Broadcasting Corporation (NBC). While Schlettwein...

A legacy in doubt

3 weeks ago - 23 October 2019 | Economics

Jo-Mare Duddy - With elections on the horizon, president Hage Geingob and his cabinet must decide what their legacy is going to be: will they...

Upbeat Calle preaches recovery

3 weeks ago - 23 October 2019 | Economics

Finance minister Calle Schlettwein says the domestic economy is projected to gradually emerge from the recession in 2020 with a moderate growth rate of about...

Stable Botswana to vote in rare cliffhanger

3 weeks ago - 23 October 2019 | Economics

Susan Njanji - Botswana votes today in the most closely fought general election in the history of the Southern African country, long known as...

Latest News

August 26 CEO innovates

3 days ago - 15 November 2019 | Business

Elizabeth Joseph ...

Fishing quotas under scrutiny

3 days ago - 15 November 2019 | Fishing

President Hage Geingob and acting fisheries minister Albert Kawana will meet next week to discuss the credibility of the fishing quota allocation process, as well...

Geingob was 'talked out of'...

3 days ago - 15 November 2019 | Government

President Hage Geingob had written dismissal letters for ministers Sacky Shanghala and Bernhard Esau on Wednesday morning, but a high-level meeting that included Vice-president Nangolo...

Helping people help themselves

3 days ago - 15 November 2019 | People

Evany van WykMarjolize Scholtz has been a wellness professional for over 17 years. During her career her empathy towards people has grown immensely. Scholtz was...

Putting on a corporate...

3 days ago - 15 November 2019 | People

Elizabeth Joseph Margaret Thatcher once quipped that if you want something said, ask a man. If you want something done, ask a woman. Langford...

Fuelled by ­creativity

3 days ago - 15 November 2019 | People

Evany van Wyk “Every challenge is put on your path to groom you and build you and if I had the opportunity to change something...

A musician at heart

3 days ago - 15 November 2019 | People

Queen, Mumford and Sons, as well as Koos du Plessis are all musical influences that Ruan Greeff, or John Rock Prophet as you may know...

EVMs in the firing line

3 days ago - 15 November 2019 | Politics

Independent president candidate Panduleni Itula, the Electoral Commission of Namibia (ECN) and Swapo will square off in the electoral court on Tuesday, 19 November over...

Unshackling the toothless ACC

3 days ago - 15 November 2019 | Opinion

Much has been said about the Anti-Corruption Commission (ACC) over the years. Many have called it toothless.Revelations this week that it has been sitting on...

Load More