In keeping with its 10-year strategic focus on infrastructure development, the African Development Bank (AfDB), this week said it had approved a R2.9 billion ($338m) “sovereign guaranteed” loan to Namibia Port Authority (Namport).

The Tunis-headquartered development finance institution said the money would be used by the state-owned firm for the erection of a container terminal at the Walvis Bay New Port.

Sara Kuugongwelwa-Amadhila, Namibia’s Finance Minister, said the project was critical to the country’s National Development Plan (NDP), which plans to turn Namibia into a regional logistics hub in the next four years.

Ebrima Faal, AfDB’s Regional Director at the Southern Africa’s Resource Centre, said the project will improve global and inter-regional trade and regional integration, enabling Namibia to capitalize on its special geographical location to expedite trade to and from the region.

“With the high levels of youth unemployment, the Bank’s support to Namport and the Government of Namibia will greatly improve private sector development and youth employment and will especially boost women participation in the logistics sector,” Faal said.