AfDB lends US$134,9 million to Namibia.
The Board of Directors of the African Development Bank (BAD) approved a loan of South African Rand 2,3 billion, equivalent to US$134,9 million, in co-financing for the second phase of the Namibia Governance and Economic Recovery Support Program (GERSP II).
The funds will support Namibia's resilience and post-Covid-19 inclusive economic recovery through strengthening governance and implementing reforms in real sectors. The German development bank Kreditanstalt für Wiederaufbau (KfW) is processing a complementary budget support loan worth €50 million.
The program has three components: achieving fiscal sustainability, supporting private sector-led transformation of the agriculture and industry sectors, and improving economic and social inclusion.
The approval follows a previous loan tranche of R1,5 billion, which the Board approved for the first phase of the program in March 2021. The International Monetary Fund contributed R4,1 billion ( $270,8 million) in co-financing for phase I through the Rapid Finance Facility.
The main beneficiaries of the program are government ministries, departments and agencies whose reforms are being supported by the operation. The private sector will benefit from better investment opportunities in agriculture and industry and from opportunities for public-private partnerships.
GERSP II aligns with the Bank's policy on program-based operations (2012), its Ten Year Strategy (2013-2022), the Strategy for Economic Governance in Africa, the Industrialization Strategy, and the “Food Africa” strategy. .
The project advances Namibia's social protection policy aimed at providing safety nets for marginalized groups in the country. It also aligns with the country's 5th National Development Plan and Vision 2030 to increase domestic revenues and encourage the private sector to create jobs.
In May 2022, the Bank's active portfolio in the country, including loans and grants, totaled US$764,5 million. It covers the transport, water and sanitation, financial, multisectoral, agricultural and social sectors.
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Picture: © DR
