Namibia can expect a healthy cash injection to help fund power generation projects in the country over the next few years after the European Union (EU) agreed funding as part of a two-year partnership deal with the African Union.

The EU has earmarked €1bn to fund power generation in a number of African states including Namibia, Kenya, Senegal and Ethiopia, to boost investment in the sector.

Andris Piebalgs, the EU’s Energy Commissioner, also noted that the agreement, which runs between 2008 and 2010, would also help to promote energy interconnection projects between Africa and Europe.