Namibia has allocated 107.1 million Namibian dollars (US$6.5 million) to expand rural telecommunications infrastructure under its Universal Service Fund, as the government accelerates efforts to close the country’s digital divide and boost internet access.
The funding will support phases two and three of the Universal Service Fund (USF), a national initiative designed to extend connectivity to underserved and high-cost rural areas that are typically excluded from private-sector investment.
The Communications Regulatory Authority of Namibia (CRAN), which oversees the programme, announced the allocation on Thursday, saying the new funds would be channelled into expanding mobile network coverage, upgrading broadband infrastructure, and connecting public institutions such as schools and health facilities.
Under the second phase of the programme, a total of 42.1 million Namibian dollars has been awarded to telecom operators MTC and Telecom Namibia to roll out infrastructure across multiple regions.
MTC received 32.3 million Namibian dollars, while Telecom Namibia was allocated 9.8 million Namibian dollars to support expansion works.
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The phase two rollout will include the construction of radio access network (RAN) towers across nine sites located in the regions of ǁKaras, Kavango West, Kunene, Ohangwena and Oshikoto. Officials say the project will extend mobile connectivity to 15 public institutions, including schools and health centres.
CRAN said civil engineering works for the second phase are expected to begin in May 2026.
The government has also earmarked about 65 million Namibian dollars for the third phase of the programme, which aims to connect nearly 16 additional rural communities. However, officials have not yet announced a detailed timeline for implementation.
The USF was launched in February 2025 with an initial investment of 145 million Namibian dollars, financed through public funding and a 0.5 percent levy on telecommunications operators’ gross revenues.
The first phase of the programme focused on improving connectivity in Kavango West, Kavango East, Kunene and Oshikoto regions, with the aim of achieving at least 80 percent broadband coverage in targeted areas. Authorities estimate that more than 10,000 people are benefiting from improved 4G access under the initial rollout.
The broader strategy is part of Namibia’s long-term digital transformation agenda under National Development Plan 6 (NDP6), which prioritises universal connectivity as a key driver of economic inclusion and growth.
The government has set an ambitious target of raising national internet penetration from about 53 percent to 90 percent by 2030, supported by investments in fibre networks, mobile infrastructure and satellite technologies for remote regions.
Despite steady progress in basic connectivity, significant gaps remain. According to CRAN data from February 2024, around 360,000 people in Namibia still lack access to 4G coverage. This represents roughly 12 percent of the population, with rural areas disproportionately affected.
The digital divide also extends to public services, with 339 schools and 50 health facilities still without reliable high-speed internet access.
While Namibia has achieved near-universal 2G coverage and widespread 3G availability, experts say the absence of robust 4G infrastructure continues to limit access to digital education, e-health services and e-commerce opportunities in rural communities.
Officials argue that the Universal Service Fund is critical to addressing these disparities by subsidising infrastructure deployment in commercially unviable regions.
CRAN said the fund is intended to “incentivise investment in high-cost, low-return areas” where private operators are unlikely to expand without government support.
Analysts say the success of the programme will depend on sustained funding, efficient rollout, and the ability of operators to maintain infrastructure in remote and often difficult terrain.
If fully implemented, the combined phases of the USF could significantly expand Namibia’s digital footprint and support its ambition of becoming a more connected, digitally driven economy by the end of the decade.
Namibia has been pursuing an aggressive digital inclusion strategy aimed at closing persistent connectivity gaps between urban centres and rural communities. Despite relatively strong baseline mobile coverage, significant disparities remain in access to high-speed internet, particularly in remote and sparsely populated regions.
The country currently maintains near-universal basic mobile coverage, with 2G networks reaching the entire population and 3G coverage extending to most areas. However, access to 4G and broadband services remains uneven, leaving hundreds of thousands of citizens without reliable high-speed connectivity for education, healthcare, and economic activity.
To address these gaps, the government established the Universal Service Fund (USF) in 2025, administered by the Communications Regulatory Authority of Namibia (CRAN). The fund is designed to support infrastructure rollout in commercially unviable areas by pooling resources from public funding and a levy on telecommunications operators.
Operators such as MTC and Telecom Namibia play a central role in implementing USF-funded projects, including the deployment of mobile towers and expansion of broadband access to public institutions.
The initiative aligns with Namibia’s broader National Development Plan 6 (NDP6), which prioritizes digital transformation as a driver of inclusive economic growth. The government has set an ambitious target of achieving up to 90% internet penetration by 2030, supported by investments in terrestrial networks and emerging satellite connectivity solutions.
Despite these efforts, infrastructure gaps remain a key constraint, with many rural communities still lacking reliable 4G access and hundreds of schools and health facilities underserved. The Universal Service Fund is therefore positioned as a critical policy tool to bridge this divide and accelerate digital inclusion across the country.
