The African Development Bank Group has approved a sweeping $1.78 billion development strategy for Namibia, signalling one of the most significant international interventions aimed at transforming the country’s economy, expanding infrastructure and addressing an escalating unemployment crisis.
The six-year Country Strategy Paper (CSP), endorsed by the AfDB Board of Directors in Pretoria, sets out a roadmap for Namibia from 2025 to 2030. It aligns with the country’s Vision 2030 blueprint, the AfDB’s Four Cardinal Points and the African Union’s Agenda 2063, underscoring a coordinated push toward long-term economic stability and inclusive growth.
Moono Mupotola, the Bank’s Deputy Director General for Southern Africa and Country Manager for Namibia, described the new strategy as “a pivotal moment for Namibia’s development,” stressing that its implementation would create a foundation for broad-based prosperity.
“By focusing on strategic infrastructure and human capital development, we are laying the foundation for inclusive growth that will benefit all Namibians, particularly the young,” she said.
A country grappling with inequality and shrinking income
Namibia remains one of the most unequal societies in the world, a challenge compounded by rising joblessness and declining incomes. Youth unemployment has now surpassed 40 percent, while the country’s per capita income has fallen from $5,942 in 2012 to $4,240 in 2024.
The AfDB says the newly approved programme seeks to reverse these troubling indicators by investing in sectors capable of enhancing productivity, expanding job opportunities and improving living standards.
Two major pillars to drive transformation
At the heart of the strategy are two priority areas designed to address Namibia’s most pressing development needs.
Massive investment in infrastructure
The first pillar focuses on transforming the country’s transport, energy and water systems—areas the Bank considers essential to reducing the high costs of doing business and unlocking regional trade potential.
Key interventions include:
Strengthening Namibia’s role as a logistics hub through improved corridors linking the country with Angola, Zambia and other regional markets
Expanding renewable energy and enhancing power reliability
Increasing rural access to safe water and modern sanitation
Enhancing cross-border trade facilitation under the African Continental Free Trade Area
These efforts are expected to push electricity access from its current 59.5 percent towards near-universal coverage while also positioning Namibia as a strong contender in Africa’s emerging green hydrogen market.
Boosting human capital and job creation
The second priority area targets the country’s human development challenges—particularly the skills mismatch affecting young people.
The Bank plans to scale up:
Technical and vocational education programmes tied to labour market demand
Support systems for micro, small and medium-sized enterprises
Initiatives to expand opportunities for women entrepreneurs
Programmes that provide clearer pathways from classrooms to careers
According to the AfDB, these interventions will not only broaden the country’s economic base but also create thousands of jobs by strengthening manufacturing capacity and integrating local MSMEs into regional value chains.
A buffer against global economic pressures
Mupotola noted that Namibia’s economy has come under additional strain due to global developments, including recent U.S. tariff hikes and cuts in official development assistance.
“The strategy strengthens resilience by diversifying export markets, enhancing regional integration, and building domestic productive capacities,” she said.
Building on a decade of development partnerships
The Bank highlighted that the newly approved plan is anchored in its long-standing engagement with Namibia. Over the past decade, the AfDB has invested more than $658 million in key projects, including the expansion of Walvis Bay Port, major improvements to the rail network and the upgrading of dozens of schools across the country’s 14 regions.
These earlier investments, the Bank says, provide a solid foundation for rolling out the new strategy effectively.
Implementation begins immediately
The AfDB will begin executing the plan without delay, with the first set of operations expected to launch in early 2026. The Bank says implementation will support economic diversification, strengthen trade, and lay the groundwork for long-term industrial growth.
As Namibia confronts the twin challenges of inequality and unemployment, the $1.78 billion CSP represents a bold attempt to rethink the country’s development model. For many observers, the strategy offers a clear signal of international confidence in Namibia’s potential—and a pathway toward a more resilient and inclusive future.
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