Africa Investments 

Namibia: African Development Bank Board approves $134.9 million loan for post-Covid-19 economic recovery support program phase II

The Board of Directors of the African Development Bank has approved a loan of 2.3 billion South African rands ($134.9 million) in co-financing for the second phase of Namibia’s Governance and Economic Recovery Support Program (GERSP II).

The funds will support Namibia’s resilience and post-Covid-19 inclusive economic recovery by strengthening governance and implementing real sector reforms. German development bank Kreditanstalt für Wiederaufbau (KfW) is processing a complementary budget support loan to the tune of 50 million euros.

The program has three components: attaining fiscal sustainability, supporting private sector-led agriculture and industrial sector transformation, and enhancing economic and social inclusion.

The approval, on 28 September, follows an earlier loan tranche of 1.5 billion rands, which the Board approved for the program’s first phase in March 2021. The International Monetary Fund contributed 4.1 billion rands ($270.8 million) in co-financing for phase I through the Rapid Financing Instrument.

The program’s primary beneficiaries are government ministries, departments, and agencies whose reforms are being supported by the operation. The private sector will benefit from improved investment opportunities in agriculture and industry and public-private partnership opportunities.

The 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 ‘Feed Africa’ strategy. The project advances Namibia’s social protection policy targeting provision of 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 revenue and stimulate the private sector to create jobs.

As at May 2022, the Bank’s active portfolio in the country, comprising loans and grants, totaled $764.5 million. It covers the transport, water and sanitation, finance, multi-sector, agriculture, and social sectors.

African Development Bank Group

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