Electricity tariffs in Namibia are expected to decrease over time following the signing of a pivotal cross-border energy agreement with Angola. The Angola-Namibia Interconnector Transmission Line Project is a major infrastructure initiative designed to connect the two countries’ electricity grids and improve power access.

Kandali Iyambo, Modified Single Buyer Executive at NamPower, explained that the project strategically balances Namibia’s energy self-sufficiency with affordability for consumers.
“We have to strike a balance between self-sufficiency and affordability for our consumers as well. What we will see with this project is a reduction in tariffs to the end consumers. That is basically what is vital and why the government of Namibia together with NamPower decided to go this route,” Iyambo said.

The interconnector will enable Namibia to access additional electricity supplies from Angola, relieving pressure on Namibia’s current energy mix which heavily relies on imports. Access to competitively priced power is expected to lower procurement costs, a key factor in determining electricity tariffs.

Valued at approximately N$4 billion, the project is also expected to strengthen energy security. While tariff reductions may not be immediate, NamPower affirmed that the long-term outlook is positive, with consumers likely to benefit significantly once the project is operational.
“The government’s investment is not for perpetual power imports but to close the gap until we develop a baseload power plant,” Iyambo added.

Beyond affordability, the interconnector marks a critical step towards regional energy integration, enabling Namibia and Angola to share resources more efficiently and build a more stable, cost-effective energy supply system.