Namibia gets N$2.3 billion AfDB loan
The African Development Bank has approved a loan of N$2.3 billion in co-financing for the second phase of Namibia’s Governance and Economic Recovery Support Programme.
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 N$1.5 billion which the Board approved for the program’s first phase in March 2021. The International Monetary Fund contributed N$4.1 billion 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.
As at May 2022, the Bank’s active portfolio in the country, comprising loans and grants, totaled U$764.5 million. It covers the transport, water and sanitation, finance, multi-sector, agriculture, and social sectors.
