Namibia - Economic Governance and Competitiveness Support Programme- Supplemental Financing

The proposed operation is an ADB Loan of two billion, eleven million South African Rand (2.011 billion ZAR), equivalent to UA 97 million, to the Republic of Namibia as supplemental financing for the Economic Governance and Competitiveness Support Program (EGCSP). The EGCSP is designed as a programmatic series of two consecutive General Budget Support (GBS) operations covering the fiscal years 2017/18-2018/19, for a total indicative financing of ZAR 6 billion (UA 336.70 million). After two years of program implementation, despite the numerous achievements of the EGCSP, Namibia requires additional support to confront emerging challenges. The contraction of the economy in recent years has exacerbated the country’s development challenges. Tough reforms are required to further enhance macroeconomic stability, improve public financial management and improve the business environment, while protecting the poor and most vulnerable groups. The proposed supplemental financing operation is carefully designed to build on the policy measures and achievements of EGCSP I and II by consolidating the gains already recorded. It will avail the required resources to implement economic and social development programs and traction necessary to achieve the unfulfilled Outcome and Impact level targets of the program. The proposed reform measures are carefully selected to ensure proper sequencing. The program will also continue to complement other Bank Group funded operations in Namibia, in particular the three infrastructure investment projects approved in 2017 (covering transport infrastructure, agricultural mechanization and seed improvement and education). This supplemental financing brings the total loan to ZAR 8.011 billion over three years.