The Auditor-General’s findings show that delays affected railway projects across several parts of Namibia’s network during the 2024/25 financial year, with causes ranging from contractor financial difficulties and labour disputes to procurement delays, legal clearances, resource constraints and late mobilisation.
The affected sections include infrastructure linked to Namibia’s northern network, the Trans-Oranje Corridor and routes serving freight movements towards Lüderitz. The Directorate of Railway Infrastructure Management also left N$48.64 million of its authorised budget unspent during the year, while N$57.08 million of the N$65.42 million appropriated for rehabilitation of the Southern Railway Line was utilised.
- Namibia’s Directorate of Railway Infrastructure Management failed to spend N$48.64 million of its authorised 2024/25 budget, according to the Auditor-General.
- Construction of the Oshakati railway station and platform, including a CCTV system, achieved its 100% completion target.
- The Northern Railway Line Extension was affected by the contractor’s financial difficulties, delays in procuring materials and labour disputes over late payment.
- Rehabilitation of the Southern Railway Line between Sandverhaar and Buchholzbrunn fell behind schedule.
- Of N$65.42 million appropriated for the Southern Railway Line in 2024/25, N$57.08 million was utilised.
- The Department of Transport underspent its overall budget by N$143.8 million.
Namibia’s railway infrastructure programme faced significant underspending and project delays during the 2024/25 financial year, with contractor financial difficulties, procurement delays and resource constraints affecting the implementation of several projects.
Auditor-General Junias Kandjeke, in his report on the Accounts of the Department of Transport for the financial year ended 31 March 2025, found that the Directorate of Railway Infrastructure Management failed to spend N$48.64 million of its authorised budget.
The audit’s performance assessment found that the construction of the Oshakati railway station and platform, including the installation of a CCTV system, achieved its 100% completion target. The Oshakati Train Station is part of the 28km northern railway extension project linking Ondangwa to Oshakati in northern Namibia.
However, the Northern Railway Line Extension project experienced significant implementation problems.
According to the report, the project was affected by poor coordination, planning and control by the contractor’s management. The contractor also experienced financial difficulties, resulting in delays in procuring project materials and labour disputes linked to late payment of contract workers.
The Northern Railway Line Extension is a three-phased national infrastructure project in Namibia designed to link the copper mining and processing town of Tsumeb to the Angolan border.
In the south of the country, progress on the rehabilitation of the Southern Railway Line between Sandverhaar and Buchholzbrunn also fell behind schedule.
The Sandverhaar–Buchholzbrunn railway line is situated along the Trans-Oranje Corridor, and revitalising the railway system is vital for boosting the transport of bulk commodities, such as manganese intended for export via the Lüderitz port.
The Auditor-General attributed the delays to a poorly resourced project team, late mobilisation and severe water shortages in the project area. The contractor also failed to submit the required documentation to clear a second construction team for deployment at the site.
Several other railway sections were affected by procurement and legal processes. The Windhoek–Gobabis rail section remained delayed by procurement clearance formalities, while the Ariamsvlei–Lüderitz section experienced lengthy delays in clearing procurement processes.
For the Otavi–Grootfontein section, procurement was concluded but subsequently cancelled after the only bidder was found to be non-responsive.
The Kranzberg–Otjiwarongo section was also delayed by prolonged procurement formalities and legal clearance processes involving the Office of the Attorney-General.
The report further shows that N$65.42 million was appropriated for the rehabilitation of the Southern Railway Line during the 2024/25 financial year, of which N$57.08 million was utilised.
Overall, the Department of Transport underspent its budget by N$143.8 million during the financial year.
Written by Chamwe Kaira for Railways Africa
