By: Nghiinomenwa-vali Hangala
An update from the Ministry of Industries, Mines, and Energy (MIME) has indicated that the government has financed around 5,800 renewable energy systems across Namibia, to a cumulative value of about N$177 million.
This was through the Solar Revolving Fund (SRF), a facility that provides loans for individuals, households, farmers, and small businesses to acquire renewable energy systems. These include solar home systems, solar water pumps, and solar water heaters.
Through the Fund, the Ministry provides subsidised financing to enable access to energy services. Eligible Namibian citizens and businesses may access loans of up to N$150,000 at a highly subsidised interest rate of five percent per annum over a period of a maximum of five years.
This week, the government signed a Service Level Agreement with CENORED, an electricity distributor for the Central Regions, to be one of the implementors of the SRF.
Speaking at the signing, MIME Deputy Minister Gaudentia Kröhne indicated that the agreement aims to advance the Ministry’s 2025/2026 to 2029/2030 Strategic Plan, particularly Pillar 4 on Energy Sustainability.
The Pillar stipulates that the Ministry commits to ensuring sustainable access to energy for all Namibians. Kröhne also indicated that the Strategic Plan clearly identifies the persistent challenges facing the country’s energy sector, which include low generation capacity, limited access in rural and peri-urban areas, and affordability constraints.
She also acknowledged that even though grid infrastructure continues to expand across regions, many households and small businesses remain unconnected, not because the grid is absent, but because the cost of connection remains beyond their immediate financial reach.
Connection costs often include transformers, poles, cables, labour, and network contributions. These vary, depending on distance and infrastructure requirements, and for many rural families and small enterprises, it presents a significant barrier.
The grid-connection financing mechanism under the SRF is specifically designed to eradicate such challenges, stated Kröhne.
“It is a mechanism designed to remove financial barriers and connect more households and businesses to reliable grid electricity,” she remarked.
Under the agreement with CENORED, which operates in the Otjozondjupa, Omaheke, Oshikoto, and Kunene regions, the SRF will administer loan applications, conduct affordability assessments, and disburse approved funds directly to the regional distributor. In turn, CENORED will serve as the implementing agent, providing quotations, technical services, installation, connection, and maintenance within its areas of operation.
This ensures that financing and implementation move hand in hand, with clarity, accountability, and efficiency, noted the Deputy Minister.
In 2023, the Northern Regional Electricity Distributor (NORED) became the first regional electricity distributor to sign a Service Level Agreement with the Ministry. Through that partnership, 149 grid connections were financed to the value of N$9.2 million.
Kröhne noted that partnerships between government institutions and regional electricity distributors are essential to accelerating access to modern energy services.
Electrification is one of the main inputs in the modern economy, going beyond simply lighting homes. It enables entrepreneurs to grow their businesses, allows learners to study in safe and conducive environments, and supports refrigeration and productive activities for small enterprises.
Adding to this, Kröhne noted that reliable grid electricity is a fundamental enabler of economic participation and inclusive growth, saying that it contributes directly to job creation, SME development, and improved living standards.
erastus@thevillager.com.na
