|Approval Date||18 Jul 2018|
|Signature Date||14 Aug 2018|
|Planned Completion Date||30 Jun 2019|
|Last Disbursement Planned Date||30 Jun 2019|
|Sovereign / Non-Sovereign||Sovereign|
|DAC Sector Code||15124|
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.
The goal of EGCSP II is to continue support for the implementation of the government’s medium-term development agenda aimed at building a strong foundation for inclusive and sustainable economic growth, while leveraging the achievements of EGCSP I. Consistent with this goal, EGCSP II aims specifically to : (i) Advance fiscal consolidation through improved revenue collection, and enhanced efficiency in public spending; (ii) Strengthen public financial management and public sector efficiency, by improving the public procurement, internal and external audit functions and the governance framework for SOEs; and (iii) Improve the business environment through enhancement of the investment facilitation framework, and improving the framework for industrial and MSME development.
The beneficiaries of the program remain the same as in EGCSP I. The direct beneficiaries are the Ministry of Finance, Ministry of Industrialization, Trade and SME Development, Ministry of Public Enterprises and other ministries and agencies in charge of public financial management and business environment reforms. The entire population of Namibia will ultimately benefit from the ongoing fiscal consolidation efforts, through the resultant fiscal space, which will help to fund critical infrastructure investments. Creation of fiscal space will also guarantee pro-poor expenditures for basic social services delivery, which benefit the poor and other vulnerable groups such as women. The entire population will benefit from improved governance of state-owned enterprises, through improved performance of SOEs and enhanced service delivery. The private sector will also benefit from an increased competitiveness of the economy, resulting from macroeconomic stability, PPP opportunities and an enhanced investment facilitation framework supported by the programme. MSMEs, including women-owned enterprises, will particularly benefit from the improved policy, legal, regulatory and institutional framework for industrial and MSME development.
African Development Bank
Ministère des Finances
|Last Update||07 Aug 2020|