Also known as: KfW Green Credit Line II · German government-linked KfW · German development bank KfW
German development bank providing climate and green financing to Namibian institutions, including N$607 million credit line to Development Bank of Namibia.
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August 2026
The Namibian
KfWwas to channelthe N$200-million grant for Windhoek's sustainable urban mobility project
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“The funding was secured during government negotiations between Namibia and Germany in October 2021 and was to be channelled through German development bank KfW under the German Climate and Technology Initiative.”
KfWprovides supportfor Namibia's blended finance approach for water infrastructure
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“Namibia is supporting calls for increased financing for water infrastructure across Africa, including a continental target of mobilising billions of dollars annually, while locally pursuing a blended finance approach combining government funding with support from institutions such as the African Development Bank and KfW.”
The German government has withdrawn an estimated N$200-million grant for Windhoek's sustainable urban mobility project after a feasibility study found that the anticipated increase in cycling and reduction in carbon dioxide emissions would not meet Germany's climate-financing requirements. The city had submitted an alternative electric bus project proposal in October 2025 for review.
The German government has withdrawn an estimated N$200-million grant for Windhoek's sustainable urban mobility project after a feasibility study found that the anticipated increase in cycling and reduction in carbon dioxide emissions would not meet Germany's climate-financing requirements. The city had submitted an alternative electric bus project proposal in October 2025 for review.
Facing drought and climate uncertainty, Namibia is moving away from traditional surface water sources toward desalination, water reclamation, groundwater management, and renewable energy-powered systems. The country's Cabinet Committee on Water Supply Security, established in 2016, has expanded its mandate from securing Windhoek's supply to addressing water challenges across coastal regions and the broader country.
Namibia has launched the Namibia for Life Project Finance for Permanence agreement, a funding initiative involving government, conservation organizations, and international partners including Germany's KfW and USAID, to secure stable long-term support for community conservancies. According to WWF Namibia, Namibia is the first country in Africa to successfully complete such a conservation financing deal.
Namibia has formally signed a headquarters agreement to host the secretariat of the Global Water Partnership Organisation (GWPO) in Windhoek, making it the world's first Global South-anchored intergovernmental organisation dedicated to water. Agriculture Minister Inge Zaamwani said the decision reflects Namibia's long experience in water cooperation, transboundary basin management, and its proven track record hosting other regional institutions.
The Development Bank of Namibia recorded a 42% increase in operating profit from N$62 million in 2023/24 to N$88.3 million in 2024/25, reflecting strong cost discipline and enhanced recoveries. The bank also secured significant new funding, including N$607 million from KfW Green Credit Line II and became the first Namibian institution accredited by the Green Climate Fund.
The Development Bank of Namibia reported a 42% increase in operating profit to N$88.3 million for 2024/25 and secured significant international funding, but opposition lawmakers questioned whether strong financial results are translating into inclusive development, particularly in historically marginalised regions.
The Development Bank of Namibia has cleaned up its balance sheet by writing off about N$579 million in non-performing loans during the 2024/25 financial year as it navigates a complex economic environment with a shrinking loan book. The bank's net interest income contracted by 25% year-on-year, though it is shifting towards climate financing and prioritising support for SMEs.
The Development Bank of Namibia approved N$912.7 million in funding and supported the creation of 1,429 jobs during the 2024/25 financial year, with support for 49 SME projects including allocations to women-owned and youth-owned enterprises across multiple regions. The bank achieved accreditation with the Green Climate Fund and secured additional funding through KfW and the African Development Bank, reporting a 42% increase in operating profit to N$88.3 million.