|Approval Date||10 May 2017|
|Signature Date||23 May 2017|
|Planned Completion Date||31 Dec 2017|
|Last Disbursement Planned Date||31 Dec 2017|
|Sovereign / Non-Sovereign||Sovereign|
|DAC Sector Code||43010|
The Economic Governance and Competitiveness Support Program (EGCSP) is the first of a General Budget Support (GBS) series as well as the first formal intervention of the Program Based Operation (PBO) of the Bank in Namibia. The proposed operation is intended to support the implementation of the Namibian government's medium-term development agenda, which aims at accelerating inclusive growth and sustainable development, by preserving macroeconomic stability and addressing the challenges of lack of diversification, high unemployment and income inequality. Designed as a programmatic series of two consecutive General Budget Support (GBS) operations covering the years 2017/ 2018-2019 / 2019, the EGCSP will address immediate macroeconomic challenges (by supporting favorable fiscal consolidation growth initiatives and preserving macroeconomic stability). It involves a balanced program combined with fiscal, PFM, industrial development and MSME reforms, prioritizing social and capital spending to mitigate the potential negative social effects of fiscal consolidation on the poor and vulnerable groups. The expected overall impact is: (i) an increase in real GDP, whose growth is projected to increase 1.6 per cent in 2016 to 3.3 per cent in 2019; (ii) poverty reduction, which is projected to decline from 1.8 per cent in 2015 to 12 per cent in 2019; and (iii) decline in unemployment, whose rate is expected to fall from 28.1% in 2014 to 20% in 2019.
The overall objective is to help promote inclusive growth and economic competitiveness and diversification through improved economic management and business environment reforms. Specifically, the program aims to: (i) advance fiscal consolidation through improved revenue collection and enhanced efficiency in public spending ; (ii) strengthen public financial management and enhance public sector efficiency by improving public procurement, internal and external audit functions, and the governance framework for State-Owned Enterprises (SOEs); (iii) create a more business-friendly environment by strengthening the investment facilitation framework and improving the framework for industrial and MSME development.
The direct beneficiaries of the EGCSP will be the Ministry of Finance, Ministry of Industrialization, Trade and SME Development, Ministry of Public Enterprises and other ministries and agencies in charge of PFM and business environment reforms. The entire Namibian population will ultimately benefit from the ongoing fiscal consolidation efforts thanks to the resulting fiscal space that will help finance infrastructure development. The private sector will also benefit from the increased competitiveness of the economy resulting from macroeconomic stability, PPP opportunities, and an enhanced investment facilitation framework supported by the program. Micro, Small and Medium-sized enterprises (MSMEs), including women-owned enterprises, will particularly benefit from the improved legal, regulatory, institutional and policy framework for industrial and MSME development.
African Development Bank
Ministry of Finance
|Last Update||31 Oct 2019|