Namibia, China in discussion over use of NAD or RMB to fund future capital projects

Namibia and China are in close discussion to use either Namibian dollars or Chinese currency renminbi (RMB) in future capital projects.

Speaking to the media, Chinese Ambassador to Namibia Zhang Yiming said the move to use the two currencies is to avoid the risk of US dollar fluctuation after cost estimates are concluded for mega-infrastructure projects.

"We all use the USD as a common currency but now with the development of the Chinese economy, RMB is more popular. It has become another alternative for many countries including Namibia," Zhang said.

The two countries are in talks for the funding of a major upgrade at the capital's Hosea Kutako International Airport once the feasibility study which is currently underway is completed.

The Chinese government is supporting the upgrade through a concessional loan.