Namibia is positioning itself as an African leader in sustainable rail by piloting hydrogen power as part of its ongoing investment in logistics infrastructure. In April 2026, parastatal rail operator TransNamib announced it had obtained board approval for a six-month trial of a dual-fuel hydrogen- diesel locomotive. Conducted in partnership with maritime group CMB.TECH, the trial will run for approximately 50 return trips along the Walvis Bay-Windhoek corridor. TransNamib chief executive officer Desmond van Jaarsveld says the pilot project is designed to test the operational viability of hydrogen technology under real-world conditions. The locomotive will be evaluated across a range of performance indicators, including fuel consumption, reliability, efficiency, maintenance requirements and cost-effectiveness. A decision on potential scale-up will follow the six- month trial period. It is part of ongoing investment in rail. In 2024, then finance minister Iipumbu Shiimi allocated R6.6 billion for railway development over the medium term. These allocations are further complemented by operational funding, a dedicated loan facility to purchase rolling stock, as well as ongoing efforts to improve governance at TransNamib, he said. In 2023/24, the government budgeted R455 million for rail operations and projects, rising to R614m in 2024/25 and R990m in 2025/26. The estimate for 2026/27 is R1.2 billion, and R1.3 bn in 2027/28 to fund major capital projects. This excludes the Trans- Kalahari rail project, which has been decades in the making. It will connect Botswanas mines to Walvis Bay, with a feasibility study due for release in June 2026. Fuel levy revenues have been allocated to financing the construction and rehabilitation of priority road infrastructure in the 2026/27 budget. Finance minister Erica Shafudah said transport will receive a total budget of R2.1 bn, which is geared towards road infrastructure funded from the state revenue fund. Its worth noting that the transportation sector is also funded through external loans and grants totalling R1.6 bn, as well as fuel levies dedicated to the Road Fund authority for the construction of critical roads amounting to R2.4 bn, she added. In 2025/26, the Road Fund Administration RFA announced it was exploring additional revenue streams after its updated 2024 to 2029 business plan revealed a gap of 46 between revenue raised through user fees and planned expenditure. Plans include enforcing a new regulation which mandates that used vehicles be transported off wheel, thereby reducing grey imports and protecting infrastructure. The RFA aims to boost cross- border electric vehicle EV traffic by placing charging stations. Green hydrogen projects and Walvis Bays port expansion will increase road use, but will require robust maintenance, according to the RFA Integrated Strategic Business Plan 2024-2029. Investment in airports and airfreight-linked infrastructure is also taking off. It includes terminal upgrades, solar installations, apron expansions and route development initiatives led by the Namibia Airports Company NAC and the Ministry of Works and Transport. The NAC is planning a third terminal at Hosea Kutako International Airport in Windhoek, which will incorporate solar power and energy-efficient facilities to meet additional passenger traffic for the oil and gas sector. About R29m is being invested in feasibility studies for upgrading airports at Lderitz, Walvis Bay, Rundu and Katima Mulilo, aimed at improving regional connectivity and supporting green hydrogen and mining logistics. New or expanded routes from carriers such as South African Airways, Airlink, Air Angola, FlySafair, and Eurowings are boosting belly cargo capacity, while the NAC is explicitly framing route development as a lever for higher passenger volumes and diversification into cargo. ER
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