Home Economy Namibia’s recovery from COVID-19 aided by African Development Bank

Namibia’s recovery from COVID-19 aided by African Development Bank

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The African Development Bank approved a US$100.27 million loan to Namibia this week, giving it a boost in its efforts to revitalize its economy (AFDB).

The loan was approved based on Namibia’s creditworthiness, according to Tonateni Shidhudhu, the ministry’s chief public relations officer.

“The approval follows the completion of economic governance and competitiveness support programme (2017-2020) which has achieved significant results in arrears of fiscal consolidation, public financial management and improvements in the business environment. However COVID-19 threatens to reverse some of these gains,” Shidhudhu said

He said Namibia would repay the loan over 15 years with “favourable” conditions and would use the money to enhance private sector-led agriculture development, fiscal sustainability and industrial sector transformation.

Finance Minister Ipumbu Shiimi said, “The loan approval comes at an opportune time as we work towards reviving the economy.”

Minister Shiimi added that the loan would boost the implementation of the Harambee Prosperity Plan II, Namibia’s economic development blueprint.

The minister said the loan would go a long way in creating fiscal space following a challenging year characterised by company closures, job losses and a liquidity squeeze.