Namibia: USD 6.5 million for phases 2 and 3 of the universal access fund


Namibian authorities are stepping up efforts to bridge the digital divide. A budget of 78 million Namibian dollars has been allocated for this purpose for the 2026/2027 fiscal year.

The Namibian government has allocated 107.1 million Namibian dollars (US$6.5 million) to finance phases 2 and 3 of the Universal Service Fund (USF). The mechanism aims to address market gaps by facilitating investment in high-cost, low-profitability areas that would otherwise remain unserved or underserved.

In a press release published on Thursday, April 16, the Communications Regulatory Authority (CRAN) announced the allocation of 32.3 million Namibian dollars to MTC. This amount is in addition to 9.8 million dollars allocated to Telecom Namibia, bringing the total budget for Phase II to 42.1 million Namibian dollars. MTC is responsible for deploying radio access network (RAN) towers at nine strategic sites located in the regions of ǁKaras, Kavango West, Kunene, Ohangwena, and Oshikoto. The project will also connect 15 public institutions, including schools and health centers.

The third phase will mobilize approximately 65 million Namibian dollars to connect nearly 16 additional communities. The timeline for this final phase is not yet known, while the process is already underway for phase 2 with the disbursement of some funds. Civil engineering work is scheduled to begin in May 2026.

Launched in February 2025, the Universal Solidarity Fund (USF) is based on a core investment of Namibian dollars (N$145 million), financed by government grants and a 0.5% levy on telecom operators’ revenues. The first phase targets the Kavango West, Kavango East, Kunene, and Oshikoto regions, aiming to achieve at least 80% broadband coverage in the areas. Approximately 10,300 people are expected to benefit from enhanced 4G services.

Beyond the USF, the Ministry of ICT has allocated 78 million Namibian dollars for the construction of telecom sites in underserved areas and the deployment of free public Wi-Fi in selected institutions during the 2026/2027 fiscal year. Telecom Namibia also secured a 405 million Namibian dollar loan in March to strengthen broadband access and mobile network capacity nationwide. The authorities are also relying on satellite technology to supplement coverage.

These efforts are in line with the objectives of the sixth National Development Plan (NDP6), which makes universal connectivity a driver of inclusive growth, improved public services, and participation in the digital economy. For example, the government aims to increase internet penetration from 53% to 90% by 2030.

According to CRAN, 360,000 Namibians, or about 12% of the population, lacked 4G coverage in February 2024. This also included 339 schools and 50 healthcare facilities. 3G coverage reached 89% in 2023 according to the International Telecommunication Union (ITU), while 2G now covers 100% of the population.

Source: Agence Ecofin

Back