TransNamib Secures N$2.6 Billion Funding, Meets Stringent Conditions TransNamib, the national railway company of Namibia, has successfully met the conditions for a substantial financing package worth N$2.6 billion. The company’s unwavering commitment to improving its financial standing and operational efficiency has paved the way for this significant investment. The financing agreement includes N$1.18 billion from the Development Bank of Namibia (DBN) and N$1.42 billion from the African Development Bank (AfDB). These funds will be utilized to finance TransNamib’s turnaround plan, which aims to enhance its profitability and service delivery. * Modernization of Rolling Stock and Infrastructure: The funds will be invested in upgrading TransNamib’s aging locomotives, wagons, and rail infrastructure. This will increase the company’s capacity and efficiency, enabling it to handle increased traffic and reduce operating costs. * Operational Efficiency Measures: TransNamib is implementing operational efficiency measures to streamline its operations and improve customer service. This includes reducing maintenance costs, optimizing train schedules, and implementing new technologies. * Financial Restructuring: The company has undertaken substantial financial restructuring to improve its debt profile and reduce its reliance on government subsidies. This has enhanced TransNamib’s financial sustainability and positioned it for long-term growth. * Compliance with Governance Standards: TransNamib has demonstrated a commitment to good governance and transparency. The company has implemented robust internal control systems and is adhering to best practices in financial management and procurement. The Government of Namibia played a crucial role in facilitating the financing package by providing guarantees and supporting TransNamib’s turnaround plan. The company’s shareholders, including the Namibian Ports Authority, the Road Fund Administration, and the Social Security Commission, have also expressed their confidence in TransNamib’s potential. The N$2.6 billion funding will enable TransNamib to transform its operations, improve its financial performance, and contribute to the economic growth of Namibia. The company’s commitment to customer satisfaction, efficiency, and sustainability will ensure that it remains a vital transportation provider for the nation in the years to come.TransNamib Receives Green Light for Fleet ModernizationTransNamib Receives Green Light for Fleet Modernization TransNamib, Namibia’s national rail and freight operator, has obtained N$2.6 billion in financing to upgrade its aging locomotive fleet. The funds will be used to: * Remanufacture existing rolling stock * Acquire new rolling stock * Modernize the TransNamib workshop * Upgrade signaling equipment The loan, obtained from the Development Bank of Namibia and the Development Bank of Southern Africa, is part of TransNamib’s strategy to address locomotive capacity challenges and improve safety. Managing Director Desmond van Jaarsveld emphasized the transformative potential of the investment, which will allow the company to: * Increase its capacity * Resolve safety issues related to aging equipment * Begin procurement of new locomotives with a 24-month delivery time Van Jaarsveld highlighted the vital role that rail plays in Namibia’s economy and TransNamib’s commitment to driving economic growth. The financing coincides with other infrastructure developments, including the planned construction of a new railway line between Kranzberg and Otjiwarongo and the implementation of a new signaling system to enhance safety and line capacity. TransNamib aims to leverage this funding to modernize its fleet, improve operational efficiency, and ensure the safety and reliability of its services for the benefit of Namibia’s economy and stakeholders.TransNamib Meets Conditions for N$2.6 Billion in Financing National carrier TransNamib has met all the conditions set by the Development Bank of Namibia (DBN) for the provision of N$2.6 billion in financing. This funding will be used to procure 20 new locomotives, 180 wagons, and other equipment to enhance TransNamib’s operations and improve its service delivery. According to TransNamib CEO Johny Smith, the financing agreement was signed on Tuesday and the company is now in the process of finalizing the procurement process. “We are excited about this significant investment in our company,” Smith said. “This funding will allow us to modernize our fleet and expand our operations, which will ultimately benefit our customers and the Namibian economy as a whole.” DBN CEO Martin Inkumbi welcomed TransNamib’s commitment to meeting the conditions of the loan agreement. “We are confident that TransNamib will utilize this funding responsibly and efficiently,” Inkumbi said. “This investment will not only improve TransNamib’s operations but will also contribute to the growth of the Namibian transport and logistics sector.” The procurement of the new locomotives and wagons is expected to be completed by the end of 2023.