The African Development Bank has loaned Namibia $196m towards the second phase of its Transport Infrastructure Improvement Project (TIIP).
The money accounts for 52% of the total project cost; the rest will be provided by the Namibian government.
The first phase of the work will include building a 207km line close to the existing route between Kranzberg and Otjiwarongo in the north of the country. Some 16 bridges will be built and two stations renovated. The signaling system along the Walvis Bay-to-Tsumeb line will also be modernised.
The second phase will lay around 420km of track.
Leïla Mokaddem, director of the African Development Bank in southern Africa, said: “The project will maximise the benefits and be transformative for the competitiveness of Namibia and assist in attaining the vision of the country as a regional logistics hub by 2030.
“This project will also connect Namibia to Africa’s Copper Belt and achieve regional railway connectivity.”