TIRI MASAWI
Telecom Namibia has received a N$405 million loan seven year Social Loan facility from Rand Merchant Bank (RMB Namibia,) to support its five-year transformational strategy to modernize its infrastructure and expand affordable connectivity nationwide.
The funding will support a fiber-to-the-home rollout that will deliver faster broadband speeds of 25 Mbps and more, able to meet and exceed the recently announced national minimum requirement of 25 Mbps – benefiting schools, hospitals, and public services.
It will also support mobile network upgrades involving new base stations upgradable to 5G and supporting the transition from legacy 2G/3G to 4G technology, aimed at expanding coverage, improving network service capacity and enhancing service quality.
RMB said they structured the funding as a social loan, in accordance with the Loan Market Association’s Social Loan Principles (SLP), which is an internationally accepted framework that seeks to facilitate economic activity that promotes social outcomes.
Social loans are designed to support social issues such as access to basic telecommunications infrastructure. The purpose of this funding is to enable a reduction in the digital divide between urban and rural communities in Namibia.
Telecom Namibia Chief Executive Officer Stanley Shanapinda said Namibia’s ICT infrastructure remains inadequate, with 11 of 14 regions falling below the 95% broadband policy target – adding that the loan will go a long way in improving the situation.
“Telecom’s key objective is to ensure that every citizen can access and use entertainment, communication, information, education, commerce, and online health services through fast, reliable, and affordable internet, voice, and data connectivity. The strategy is closely aligned with Namibia’s national development plan, making this transaction a direct investment in the country’s socio-economic progress,”Shanapinda said.
Shanapinda added that “Telecom Namibia remains steadfast in its commitment to driving broader social impact and deepening digital inclusion across the country. Building on the current investment programme, the company is adopting several key initiatives aimed at reducing connectivity gaps, expanding access to highquality broadband, and strengthening digital participation for underserved communities.”
He said the efforts include accelerating fibre and 4G/LTE expansion to improve service quality, supporting digital skills development programmes, enhancing affordability through targeted service offerings, and collaborating with government and industry stakeholders to advance national digital transformation priorities.
“ Through these continued commitments, Telecom Namibia aims to empower more Namibians with the tools, opportunities, and connectivity needed to thrive in an increasingly digital economy,”Shanapinda said.
Namibia ranks 22 of 47 in Sub-Saharan Africa and 169 out of 220 globally for broadband speed, with a mean download rate of 10.8 Mbps. Legacy copper networks, insufficient fiber coverage, and reliance on 2G/3G technology further limit access
Leonard Hamunyela, Transactor at RMB Namibia said the partnership with Telecom is more than just financing infrastructure.
“ It is about enabling digital inclusion. By supporting Telecom’s modernization drive, RMB Namibia is not only financing infrastructure but also enabling broader social and economic inclusion. Enhanced broadband and mobile connectivity will empower Namibians with improved access to essential services, while strengthening the country’s competitiveness in the digital economy,” Hamunyela said.
COMMENTS