AfDB approves $129.4m loan for Namibia

The African Development Bank (AfDB) has approved a $129.4 million loan to finance the Namibia Economic Governance and Competitiveness Support Program (EGCSP).

EGCSP aims to support the Namibian government's fiscal consolidation efforts, strengthening public financial management and public sector efficiency while laying a solid foundation for industrialisation through support to critical business environment reforms. 

Namibia has seen significant improvements in its economy over the past two years. There has been a reduction in the country's budget deficit from 8.3% of GDP in 2015/16 to 4.8% in 2018/19; a decrease in the expenditure/GDP ration from 40.2% in 2015/16 to 34.9% in 2018/19, and a major improvement in foreign reserves which stood at 4.6 months of import cover by end September 2019. 

These improvement have largely been because of Namibia's 5th National Development Plan, which resulted in the government engaging in a wide range of public financial management and business environment reforms. The AfDB has been satisfied with progress so far, despite continuing challenges brought on by declining commodity prices, drought and subdued economic activity in Namibia's main trading partner economies.