A Country Strategy Paper (CSP), which has been approved by the Board of Directors of the African Development Bank Group, commits the country to an investment of $1.78 billion to enhance economic transformation and inclusive growth in Namibia in the 2025-2030 window.
The funds are likely to open job-creating opportunities and economic diversification aside, they will help mitigate major issues facing the most unequal countries in the world: unemployment levels among youth have risen to more than 40 percent in some places, and per capita income has dropped by 2024 to as little as $4,240 since 2012.
This strategy was the turning point of the development of Namibia, according to Moono Mupotola, the Deputy Director General of the Bank Group in Southern Africa and the Namibia Country Manager. “We are investing in inclusive growth that will bring the benefits of all Namibians, especially the youth, by investing strategically in infrastructure and human capital growth.”
It centers on two priorities in the strategy. The first one is transport, energy, and water infrastructure investment to minimize business costs, provide better productivity, and make Namibia a logistics hub in the region. Such investments will improve trade facilitation of the African Continental Free Trade Area, increase energy security in the form of renewables, and increase rural access to clean water and sanitation.
The second priority would focus on enhancing human capital by offering market-relevant technical and vocational education that entails the provision of education-employment linkages, the development of micro, small, and medium enterprises (MSMEs), and economic empowerment of women.
Its implementation is likely to diversify the economy outside mining and agriculture, incorporate MSMEs into the local value chain, and increase manufacturing capacity and generate thousands of direct and indirect jobs.
Infrastructure development will boost the percentage of electricity access (59.5 percent) to its universal level, improve the connection to trade with Angola and Zambia, and lower logistics expenses. The plan will also serve the climate commitments of Namibia and make it a leader in green hydrogen.
According to Mupotola, the recent tariff imposition and official development assistance reduction by the U.S have further burdened the Namibian economy. The strategy is aimed at working towards resilience through diversification of export markets, greater integration of the region, and the development of domestic productive capacities.
The plan is based on the ten-year history of the Bank in Namibia, in which the Bank has pumped in $658.1 million in venture projects such as the development of Walvis Bay Port, railway projects, and 27 educational institutions in all 14 regions.
The Namibia CSP is in line with the Four Cardinal Points of the Bank Group, the Vision 2030 of Namibia, and the Africa Agenda 2063. The implementation starts now, and the initial operations are projected to start at the beginning of 2026.
