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Namibia Approved N$4 Billion Angola Power Project

The government finalized a financing plan on August 25, 2026, to bolster cross-border electricity infrastructure.

Updated on Sept. 23, 2026 in Utilities

Isometric editorial illustration showing a high-voltage transmission tower standing alone on arid plains, representing cross-border infrastructure.
The Namibian government approved a N$4 billion financing plan on August 25 for a new transmission line connecting Namibia and Angola. AI Illustration. Upload story photo >

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On August 25, 2026, the Namibian government approved a N$4 billion financing arrangement for the Angola-Namibia Transmission Interconnector Project. This initiative aims to strengthen regional energy security and electricity trade between the two nations.

Why it matters

This transmission line is critical for enhancing energy stability and power exchange between Namibia and Angola. By securing funding, the project moves closer to its goal of expanding electrification and cross-border grid integration by 2029.

The project requires N$4 billion, supported by N$1.1 billion from NamPower and N$700 million from the National Energy Fund. The remaining N$2.3 billion will be sourced through a strategic fuel storage levy of 28 cents per litre.

The players

NamPower

NamPower is the national electric utility company responsible for the generation, transmission, and distribution of electricity in Namibia.

Ericah Shafudah

Ericah Shafudah serves as the Finance Minister and provided official concurrence for the project financing.

RNT

Rede Nacional de Transporte de Electricidade is the Angolan state-owned entity responsible for the national electricity transmission grid.

The details

The project involves building a 166-kilometre, 400 kV transmission line connecting the Kunene substation in Namibia to the Cahama substation in Angola. Additionally, a separate 270-kilometre line will link the Omatando and Otjikoto substations.

Timeline

  1. The Petroleum Products and Energy Act was passed in 1990.

  2. The Cabinet approved the project in February 2026.

  3. NamPower and RNT signed development agreements in April 2026.

  4. The finance minister approved the funding on 25 August 2026.

  5. The infrastructure project is scheduled for completion in 2029.

Market Landscape

This project follows the legal framework established by the Petroleum Products and Energy Act of 1990, which remains the core basis for energy infrastructure financing. It marks a shift toward deeper regional integration by utilizing state-levy funding models to bypass traditional debt constraints.

Consumers will contribute to the project's funding through a fuel storage levy of 28 cents per litre. This investment is intended to reduce energy supply risks and improve the long-term reliability of the electrical grid for the region.

The takeaway

The successful financing of this transmission line sets a precedent for using fuel levies to fund essential cross-border infrastructure. Ensuring the timely completion of these 400 kV lines will be vital for regional energy stability by the end of the decade.

Further reading

For broader context on grid developments, visit the /business/industry/utilities/ section.

Source note: This article includes information reported by Namibian Sun.

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