Namibia: African Development Bank Board of Directors Approves $134.9 Million Loan for Phase II of Post-Covid-19 Economic Recovery Support Program | African development bank

The Board of Directors of the African Development Bank has approved a loan of 2.3 billion South African rands (134.9 million dollars) to co-finance the second phase of the support program for governance and Economic Recovery of Namibia (GERSP II).

The funds will support Namibia’s resilience and inclusive post-Covid-19 economic recovery by strengthening governance and implementing real sector reforms. The German development bank Kreditanstalt für Wiederaufbau (KfW) is processing an additional budget support loan of up to €50 million.

The program has three components: achieving fiscal sustainability, supporting private sector-led agricultural and industrial sector transformation, and strengthening economic and social inclusion.

The September 28 approval follows an earlier loan tranche of R1.5 billion, which the Board approved for the first phase of the program in March 2021. The International Monetary Fund contributed R4, R1 billion ($270.8 million) in Phase I co-financing to the Rapid Financing Instrument.

The main beneficiaries of the program are the government ministries, departments and agencies whose reforms are supported by the operation. The private sector will benefit from better investment opportunities in agriculture and industry and public-private partnership opportunities.

The DSRG II is aligned with the Bank’s policy on programmatic operations (2012), its ten-year strategy (2013-2022), the economic governance strategy in Africa, the industrialization strategy and the “Feeding the economy” strategy. ‘Africa’. The project advances Namibia’s social protection policy by targeting the provision of safety nets to marginalized groups in the country. It also aligns with the 5e National Development Plan and Vision 2030 to increase domestic revenue and stimulate the private sector to create jobs.

As of May 2022, the Bank’s active portfolio in the country, consisting of loans and grants, stood at $764.5 million. It covers transport, water and sanitation, finance, multi-sector, agriculture and social sectors.

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