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    Omanyano ovanhu koikundaneki yomalungula kashili paveta, Commisiner Sakaria takunghilile Veronika Haulenga

Opinion Pieces

World Bank Economic Initiatives Propel Namibia to Prosperity

todayJanuary 20, 2025 16

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Josef Kefas Sheehama

The implementation of key long-term strategies, such as the National Development Plans (NDPs) and Harambee Prosperity Plans (HPPs), to advance Vision 2030 as a vehicle to industrialise the nation, as well as the country’s growing poverty, insecurity, and fragility developmental goals and the increasing risks associated with climate change, have made it imperative to accelerate Namibia’s development.

Namibia’s New Country Partnership Framework (CPF) which is part of the World Bank Group’s new strategy, is crucial. This collaboration is essential for aligning the National Development Plans and the Harambee Prosperity Plan with V2030 and shedding additional light on the NDP 6. In the face of high unemployment, inequality, renewable energy, improved access to high-quality public services (housing, health, and education), and assistance in bridging the fourth industrial revolution, cyber security is being strengthened. As a result, this involvement will assist Namibia in increasing employment, enhancing resilience to economic shocks, and lowering inequality. Enhance fiscal governance, increase revenue mobilization, and implement major changes to state-owned enterprises (SOEs) and public investment management to promote sustainable economic growth and reduce poverty.

It’s critical to have international expertise to guide and support in the implementation of national long-term strategies, and these partnerships are crucial in figuring out how our national developments will be translated into tangible future developments. In five years, we can create a more innovative, resilient, and prosperous global economy by utilizing intellectual capital and cutting-edge technologies. This is in line with the government of Namibia’s strategic vision and development priorities and is one of the World Bank Group’s strategies to assist Namibia. The partnership between Namibia and the World Bank extends beyond financial benefits as Namibia works toward mutually beneficial development and a peaceful approach. It promotes humanity’s shared future by signifying Namibia’s responsibilities and contributions to the world. The cooperation cuts across many industries and is crucial to Namibia’s economic development. To further support economic growth, diversified economic systems and vertical service structures should be established, financial resources should be integrated, and market-orientated economic reforms should be advanced. As a result, Namibia’s new Country Partnership Framework, which benefits from professional expertise, will enable Namibians to develop, absorb, and apply new technologies and knowledge more effectively at home. In addition to promoting competitiveness and economic growth, this will enable economic diversification and the long-term reduction of poverty.

In addition, the World Bank Group’s new approach will help local companies grow and enhance their ability to compete with multinational corporations in line with the government’s economic empowerment policy. Whereas Namibian companies cannot compete globally with companies for major infrastructure projects, the African Development Bank (AfDB) sees this as an opportunity to establish strong public-private partnerships that align with the government’s reform. Namibian companies typically lack the resources, experience, and rarely technical know-how to effectively compete against larger, more established international firms, having international expertise will not only benefit domestic initiatives but also increase opportunities for private companies to compete against corporations elsewhere. As part of the World Bank Group’s recently announced Country Partnership Framework (CPF) for Namibia, which covers the years 2025 to 2029, Namibia is expected to borrow approximately N$7.6 billion from the International Bank for Reconstruction and Development (IBRD) in 2025-2026. Additionally, funding of up to N$3.8 billion (US$200 million) is anticipated through the International Finance Corporation.

Recognizing that debt financing is a vital tool for government spending is crucial from an economic standpoint. This strategy is based on the idea that such spending will eventually boost the economy and raise tax revenues, which can then be used to pay off the debt. For this, not all debt is bad unless it is not used for productive purposes. Henceforth, the government can make sure that N$7.6 billion is allocated to growth-promoting initiatives while controlling bloated State-Owned Enterprises (SOEs) and limiting the increase in public sector salaries. In addition, given its vital role in the economy, I recommend that Namibia play a key role in the World Bank Group initiative to revive Air Namibia. Restoring Air Namibia will not only boost the country’s economy but also reaffirm Namibia’s independence and aviation self-sufficiency. Thus, aviation can further enhance these benefits and yield the greatest positive impact on the environment and society.

Moreover, a percentage of Namibia’s new Country Partnership Framework (CPF) borrowings should go toward infrastructure, which offers the country a medium- to long-term opportunity. Not all debts are bad; social instability can be avoided if it is used to finance suitable infrastructure and projects. So it is clear that our attempts to use the government to drive development alone failed, the World Bank Group strategy should also highlight the importance of private sector participation in implementing some of these plans. The international experts assigned to Namibia should pay particular attention to the implementation process because all long-term plans have the potential to improve the lives of the vast majority of Namibians in areas like mining, energy, agriculture, health care, and education, inter alia. The debt borrowed for long-term strategies will be good debt if Namibia’s New Country Partnership Framework (CPF) addresses these most important national needs. The country will have better growth prospects in the years to come if its citizens are healthier, more educated, and more employable.

In conclusion, the World Bank Group’s new strategy should not be interpreted as international experts telling us that we shouldn’t aim for the stars. However, if we want to tour the moon, it is best that we have a healthy, educated, and stable job among other people who share our aspirations and have enough energy-generating capacity. Conversely, we run the risk of creating lovely structures that will ultimately benefit a small minority, which will only exacerbate the inequality crisis at the heart of Namibia’s socioeconomic issues.

As a country, we must recognize that debt carries a lot of responsibility, even though not all debt is bad. In order to improve the lives of all Namibians and alleviate poverty and inequality, the government must effectively manage that debt.

Written by: Leonard Witbeen

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