AfDB has sanctioned a plan of 1.78 billion dollars to aid the development of Namibia between the year 2025 and 2030. The funds will be used to address the key issues, such as youth unemployment of more than 40 percent, and the decline in per capita income, which is expected to decrease to 4,240 in 2024, down from 5,942 in 2012. The aim is to develop jobs, expand the economy and make more people enjoy development.
The plan is aimed at two key areas. The former is increasing infrastructure such as transport, energy and water. An improved infrastructure will lower the business operating costs, enhance productivity, and make Namibia a major regional logistics center. The projects involve the expansion of trade using the African Continental Free Trade Area, higher capacity of renewable energy, and more clean water and sanitation in rural regions. The strategy targets the expansion of electricity accessibility, which is currently at 59.5 percent towards its complete coverage, and builds trade relations with other nations such as Angola and Zambia.
The second one is human capital development. These cover technical and vocational training, assistance to small businesses, and women’s empowerment programs. The plan will help to reduce unemployment as it will equip the people with skills that are compatible with the job market, and it will encourage inclusive growth.
The climate targets of Namibia have also been taken into account in the strategy. It finances such projects as the production of green hydrogen and is concerned with sustainable development. The scheme also seeks to have the economy be stronger to survive the challenges, such as the U.S. tariffs and development aid cuts, through diversification of exports and developing local capacity.
The plan to invest 1.78 billion is a continuation of the previous projects in Namibia by AfDB, which has invested in the country to the tune of 658.1 million in projects such as the expansion of the Walvis Bay Port, railway, and 27 schools nationwide. Such initiatives demonstrate long-term dedication of AfDB in assisting Namibia to develop.
This type of funding will help Namibia better infrastructure, empower skills, generate employment, and make its economy more robust and inclusive. The strategy used in the AfDB is aimed at boosting the growth of the country without ensuring that people and communities do not enjoy the benefits of such developments.
