|Approval Date||11 Mar 2020|
|Signature Date||06 May 2020|
|Planned Completion Date||31 Dec 2020|
|Sovereign / Non-Sovereign||Sovereign|
|DAC Sector Code||15124|
The proposed operation is an ADB Loan of two billion, eleven million South African Rand (2.011 billion ZAR), equivalent to UA 97 million, to the Republic of Namibia as supplemental financing for the Economic Governance and Competitiveness Support Program (EGCSP). 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). After two years of program implementation, despite the numerous achievements of the EGCSP, Namibia requires additional support to confront emerging challenges. The contraction of the economy in recent years has exacerbated the country’s development challenges. Tough reforms are required to further enhance macroeconomic stability, improve public financial management and improve the business environment, while protecting the poor and most vulnerable groups. The proposed supplemental financing operation is carefully designed to build on the policy measures and achievements of EGCSP I and II by consolidating the gains already recorded. It will avail the required resources to implement economic and social development programs and traction necessary to achieve the unfulfilled Outcome and Impact level targets of the program. The proposed reform measures are carefully selected to ensure proper sequencing. The program will also continue to complement other Bank Group funded operations in Namibia, in particular the three infrastructure investment projects approved in 2017 (covering transport infrastructure, agricultural mechanization and seed improvement and education). This supplemental financing brings the total loan to ZAR 8.011 billion over three years.
The goal of EGCSP Supplemental Financing operation is to promote inclusive growth and economic competitiveness and diversification through improved economic management and business environment reforms. It will support 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 and II. Consistent with this goal, the operation 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, with particular emphasis on improving 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 and II. 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
GOVERNMENT OF NAMIBIA
|Last Update||18 Oct 2020|