Having been approved on September 28, the loan will be used by various government departments including the Ministries of Finance; Industrialization and Trade; Public Enterprises; Agriculture, Water and Land Reform; Poverty Eradication and Social Welfare; and Gender Equality to improve governance and sector reforms in a bid to enhance an economic recovery in a post-pandemic era.
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The financing will support three primary growth areas including attaining financial sustainability – to enhance the mobilization of domestic resources and mitigate fiscal risks -; supporting private sector-led agriculture and industrial sector transformation – to strengthen policy frameworks aimed at boosting productivity across the agriculture and industrial sectors whilst enhancing private sector participation -; and enhancing economic and social inclusion – to support the development and inclusion of micro, small and medium enterprises in economic expansion.
Phase two of the GERSP is in line with the Namibian government’s various strategies – including the 5th National Development Plan and Vision 2030 – aimed at increasing revenue generation, job creation and economic growth.
The AfDB loan will be supported by a $49.7 million loan which the German development bank, Kreditanstalt für Wiederaufbau, is also providing the Namibian government with to fund the implementation of GERSP II.
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The approval of the AfDB loan follows the bank providing Namibia with a $84.9 million loan in support of the implementation of the first phase of the program which was co-financed in partnership with the International Monetary Fund.
