Namibia - Economic Governance and Competitiveness Support Programme (EGCSP)

The Economic Governance and Competitiveness Support Program (EGCSP) is the first of a General Budget Support (GBS) series as well as the first formal intervention of the Program Based Operation (PBO) of the Bank in Namibia. The proposed operation is intended to support the implementation of the Namibian government's medium-term development agenda, which aims at accelerating inclusive growth and sustainable development, by preserving macroeconomic stability and addressing the challenges of lack of diversification, high unemployment and income inequality. Designed as a programmatic series of two consecutive General Budget Support (GBS) operations covering the years 2017/ 2018-2019 / 2019, the EGCSP will address immediate macroeconomic challenges (by supporting favorable fiscal consolidation growth initiatives and preserving macroeconomic stability). It involves a balanced program combined with fiscal, PFM, industrial development and MSME reforms, prioritizing social and capital spending to mitigate the potential negative social effects of fiscal consolidation on the poor and vulnerable groups. The expected overall impact is: (i) an increase in real GDP, whose growth is projected to increase 1.6 per cent in 2016 to 3.3 per cent in 2019; (ii) poverty reduction, which is projected to decline from 1.8 per cent in 2015 to 12 per cent in 2019; and (iii) decline in unemployment, whose rate is expected to fall from 28.1% in 2014 to 20% in 2019.