The African Development Bank Group has announced the approval of a comprehensive Country Strategy Paper for Namibia, committing $1.78 billion to support the country’s efforts toward economic transformation and inclusive growth from 2025 to 2030.
The substantial investment aims to promote job creation, diversify the economy, and tackle critical challenges faced by one of Africa’s most unequal nations, where youth unemployment exceeds 40 percent and per capita income has declined from $5,942 in 2012 to $4,240 in 2024.
Moono Mupotola, the Bank Group’s Deputy Director General for Southern Africa and Namibia’s Country Manager, described the strategy as a pivotal development milestone. She emphasised that the focus on strategic infrastructure and human capital development is intended to lay a solid foundation for inclusive growth that benefits all Namibians, especially the youth.
The strategy centres on two main priorities. The first involves investing in transport, energy, and water infrastructure to reduce business costs, improve productivity, and position Namibia as a regional logistics hub. These investments aim to boost trade facilitated under the African Continental Free Trade Area, strengthen energy security through renewable sources, and expand rural access to clean water and sanitation. The second priority is to enhance human capital by supporting market-relevant technical and vocational training, creating pathways from education to employment, fostering micro, small, and medium enterprises (MSMEs), and promoting women’s economic empowerment.
Implementation of these initiatives is expected to diversify Namibia’s economy beyond mining and agriculture, better integrate MSMEs into regional value chains, and upgrade manufacturing capabilities, thereby creating thousands of direct and indirect jobs. Infrastructure improvements will increase electricity access from the current 59.5 percent toward universal coverage, improve trade connectivity with neighbouring Angola and Zambia, and reduce logistics costs. The strategy also aligns with Namibia’s climate commitments and aims to position the country as a leader in green hydrogen.
Mupotola noted that recent challenges, such as U.S. tariff impositions and reductions in official development assistance, have added economic pressures on Namibia. The new strategy seeks to strengthen resilience by diversifying export markets, bolstering regional integration, and developing domestic productive capacities.
Building on a decade of prior investments totalling over $658 million, including port expansion, railway upgrades, and educational infrastructure across all regions, the strategy aligns with the Bank Group’s Four Cardinal Points, Namibia’s Vision 2030, and Africa’s Agenda 2063. Implementation will commence immediately, with initial projects expected to launch in early 2026.
