THE African Development Bank has approved a loan of $134.9 million in co-financing for the second phase of Namibia’s Governance and Economic Recovery Support Programme (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 programme has three components: attaining fiscal sustainability, supporting private sector-led agriculture and industrial sector transformation, and enhancing economic and social inclusion.
The approval, on September 28, follows an earlier loan tranche of more than $83 million, which the Bank approved for the programme’s first phase in March 2021. The International Monetary Fund contributed $270.8 million in co-financing for phase I through the Rapid Financing Instrument.
The programme’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 programme-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 marginalised 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, the Bank said in a statement.
As at May 2022, the Bank’s active portfolio in the country, comprising loans and grants, totalled $764.5 million. It covers the transport, water and sanitation, finance, multi-sector, agriculture, and social sectors.