The Government of the Republic of Namibia and the African Development Bank (AfDB) have signed a $217.8 million loan agreement to finance the second phase of the Namibia Economic Governance and Competitiveness Support Programme (EGCSP II).
The agreement was signed by Namibian Finance Minister Carl H. G. Schlettwein and Dr Josepine Ngure, Bank Deputy Director General, Southern Africa Regional development, on behalf of the Bank Group.
EGCSP II aims to strengthen public financial management and improve the quality and efficiency of public sector spending in Namibia while laying a solid foundation for industrialisation through reforms to the business environment.
The signing follows Board approval of the second year programme and budget for the fiscal year 2018/19, at a meeting on 18 July 2018, the Bank said in a statement.
Adding that the programme will support ongoing fiscal consolidation efforts and a wide range of reforms within national policy and legal frameworks, such as the Public-Private Partnership Act, Namibia Revenue Agency Act, Namibia Industrial Development Agency Act and the Public Procurement Regulations.
The Bank’s intervention will improve revenue collection, enhance efficiency in public spending, improve debt management and enhance investment facilitation framework for industrial and MSME development. Read more: Namibia commissions $21m solar power plants
The EGCSP, together with other ongoing investment and development projects such as NAMPORT, will contribute immensely to addressing emerging challenges, strengthening Namibia’s economic competitiveness and building a foundation for long-term sustainable economic growth and development
Thanking the Bank for a speedy response to the government’s request, the Minister welcomed the flexibility of the loan and stressed the importance of strengthening institutional capacity for its implementation. Ngure reiterated the Bank’s commitment to supporting Namibia’s socioeconomic development.
Namibia’s Economic Governance and Competitiveness Support Programme is aligned with the Bank’s Country Strategy Paper for Namibia, its Ten-Year Strategy and its High 5s agenda.
The signing of this latest agreement brings the Bank’s active portfolio in Namibia to 10 operations, valued at $1.11 billion, making it the second largest portfolio in the Southern Africa Region.