Namibia’s Railway Fund Proposal Still at Concept Stage
Namibia’s Ministry of Works and Transport has revealed that the proposed establishment of a railway fund remains at the conceptual stage, with further studies needed before any decision is taken on its implementation.
The African Development Bank’s Namibia Country Strategy Paper 2025–2030 in March, indicated that the bank plans to support the establishment of a railway fund to strengthen the sustainability of Namibia’s rail sector. The proposal is still an idea that requires detailed analysis, the ministry stated.
The government would welcome technical support from development partners to assess the proposal, provided it aligns with Namibia’s transport sector objectives.
According to the ministry, a railway fund could contribute to improved operations, greater efficiency and the long-term sustainability of the country’s railway sector.
However, the government said the proposal does not signal an immediate opening of Namibia’s railway sector to additional operators because introducing more participants into the industry would require stronger regulatory systems, updated legislation and greater oversight capacity.
The ministry believes that opening up the railway sector requires robust systems of checks and balances, updating and developing new laws or regulations commensurate with such an initiative. Further, more operators would also require additional equipment and manpower to ensure effective regulation and enforcement.
Meanwhile, regarding the establishment of a railway regulator, the ministry said initial planning and discussions have already begun. The government believes that a regulator would be essential before liberalising the railway sector.
The ministry also said the specific use of money from a future railway fund has not yet been determined and will depend on the outcome of further analysis and the objectives eventually adopted.
In general, such a fund could provide financial support for public service obligations, railway infrastructure development and other sector priorities as they are identified.
The African Development Bank’s strategy identifies transport infrastructure as one of the key areas for supporting Namibia’s economic development and improving the efficiency and sustainability of the country’s transport network.
The Namibia Railway Safety Regulator (NRSR) is expected to play a pivotal oversight role in ensuring the safety of the railway system, proactively improving its standards, and preventing safety incidents.
The state-owned TransNamib is the only railway operator in Namibia and currently transports about 1.5 million tonnes of cargo each year. Through its fleet modernisation programme, TransNamib aims to increase annual cargo capacity to 4 million tonnes within the next five years.
TransNamib operates an ageing fleet with between 23 and 26 locomotives. The company says it requires at least 34 reliable locomotives to improve operations and reduce equipment failures.