Namibia’s ministry of finance has yesterday confirmed a N$1.5 billion loan approval by the African Development Bank (AfDB) to finance the Namibia Governance and Economic Recovery Support Programme (GERSP).
Windhoek requested financial support from the AfDB in June 2020 through a Covid-19 Rapid Response Facility to address the impact of the pandemic and to help maintain state welfare programmes. A response to its N$4.5 billion loan application from the International Monetary Fund is also expected in April 2021.
Executive Director ministry of finance, Ericah Shafudah stated that the request that the request was unanimously approved by AfDB’s board of directors on 17 March 2021 to the tune of US$100.27 million (N$1.5 billion).
The approval, the statement read “follows the completion of the Economic Governance and Competitiveness Support Programme (2017-2020), which has achieved significant results in the areas of fiscal consolidation, public financial management and improvement in the business environment. However, the Covid-19 pandemic threatens to reverse some of those gains”
It further stated that government is pursuing reforms in a wide range of areas in its effort towards post-pandemic recovery.
“The proposed GERSP operation is designed to support the government’s response and help to achieve inclusive post-pandemic economic recovery through improved governance and real sector reforms.”
The three main areas of focus are fiscal sustainability, private sector-led agriculture and industrial sector transformation, and economic and social inclusion.
The AfDB loan is payable over a period of 15 years and according to finance minister Iipumbu Shiimi, the approval of the loan comes at an opportune time as Namibia starts the process of rebuilding the economy and implementing the Harambee Prosperity Plan 2 (HPP2).