The proposed operation is an ADB Loan of Three billion South African Rand (3 billion ZAR), equivalent to UA 168.35 million, to the Republic of Namibia to finance the second phase of the Economic Governance and Competitiveness Support Program (EGCSP II). The EGCSP is designed as a programmatic series of two consecutive General Budget Support (GBS) operations covering the fiscal years 2017/18-2018/19, for a total indicative financing of ZAR 6 billion (UA 336.70 million). EGCSP II is carefully designed to build on the policy measures and achievements of EGCSP I by consolidating the gains already recorded. The package of reforms under the three components are therefore mutually reinforcing. Component 1, focusing on advancing fiscal consolidation, will enhance macroeconomic performance, and create fiscal space for the prioritization of capital and social spending. Measures proposed under component 2, focusing on strengthening PFM and public sector efficiency. Measures under component 3 are geared towards improving the business environment to support industrialization, spur growth and job creation. The operation will complement the other Bank Group funded operations in Namibia, in particular the three infrastructure investment projects also approved in 2017. These are (i) the Transport Infrastructure Improvement Project (ZAR 2 billion); Agricultural Mechanization and Seed Improvement Project (ZAR 1 billion); and Education and Training Quality Improvement Project (ZAR 1 billion). The combined potential positive impact of these projects in terms of enhancing economic competitiveness and creating the basis for long term growth and job creation, coupled with the macroeconomic stabilization, public sector efficiency and industrialization focus of EGCSP, is to unlock the full development potential of Namibia in the long term.

Namibia

African Development Bank Group

Africa Southern Africa Sub-Saharan Africa

Construction Energy-Power and Electrical Computer Hardwares and Consumables Marine

17.07.2018

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