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Namibian Post-COVID-19 Recovery Program gets $134.9M Boost

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The African Development Bank (AfDB) has approved a $134.9 million loan to co-finance phase two of the Namibian government’s Governance and Economic Recovery Support Program (GERSP II).

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.

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.

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.

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Nicholas Nhede

Nicholas Nhede

Nicholas is an energy sector journalist with a passion on how technology and diversification of the energy mix can be used to address energy sector challenges. Nicholas holds a diploma in Journalism and Communication studies and has been covering energy-related topics including the Internet of Things, distributed energy and digitalisation since 2015.