Chamwe Kaira
The board of directors of the African Development Bank Group has approved a Country Strategy Paper for Namibia, committing US$1.78 billion (about N$33.4 billion) to support economic transformation and inclusive growth from 2025 to 2030.
The funding aims to drive job creation and economic diversification at a time when Namibia faces a high youth unemployment rate of more than 40% and a drop in per capita income from US$5 942 (about N$111 500) in 2012 to US$4 240 (about N$79 500) in 2024.
The group’s deputy director general for Southern Africa and country manager for Namibia, Moono Mupotola, said the focus on strategic infrastructure and human capital development is meant to lay a foundation for inclusive growth that will benefit all Namibians, especially the youth.
The strategy sets out two main priorities. The first focuses on investment in transport, energy, and water infrastructure to reduce business costs, improve productivity, and position Namibia as a regional logistics hub.
These investments will support trade under the African Continental Free Trade Area (AfCFTA), strengthen energy security through renewables, and expand rural access to clean water and sanitation.
The second priority seeks to strengthen human capital through technical and vocational training that links education to employment.
It will support the growth of micro, small, and medium enterprises and promote women’s economic participation.
The AfDB expects the plan to help diversify the economy beyond mining and agriculture, integrate micro, small and medium enterprises (MSMEs) into regional value chains, and improve manufacturing capacity.
It is also expected to create thousands of direct and indirect jobs.
Infrastructure upgrades will push electricity access beyond the current 59.5% towards full coverage, improve trade connections with Angola and Zambia, and lower logistics costs.
The strategy supports Namibia’s climate goals and strengthens its role in the emerging green hydrogen sector.
“Recent U.S. tariff impositions and official development assistance cuts have created additional pressures on Namibia’s economy,” said Mupotola.
“Our strategy strengthens resilience by diversifying export markets, enhancing regional integration, and building domestic productive capacities.”
The bank said the plan builds on its work in Namibia over the past decade, which includes US$658.1 million (about N$12.4 billion) in projects such as the expansion of Walvis Bay Port, rail upgrades, and improvements to 27 educational institutions across all 14 regions.
The new strategy aligns with the AfDB’s four cardinal points, Namibia’s vision 2030 and Africa’s agenda 2063.
Work begins immediately, with the first operations expected in early 2026.
Caption
AfDB financing is expected to pave the way for job creation and economic diversification.
Photo: Contributed
