Post-colonial Namibia has been largely peaceful and stable. The country also has a progressive constitution.  The economy has also been stable and has been characterized by high rates of investment as a percentage of GDP and real GDP growth, averaging about 29 per cent and 5.1 per cent, respectively, during the period 2003-2007. This has been the result of sound macro-economic policies and a functional democracy. However, Namibia’s small market size, openness and heavy dependence on international trade makes it vulnerable to external shocks including changes in the terms of trade, external demand and climatic variations. Other challenges the country is facing include HIV/AIDS. With an HIV/AIDS prevalence rate of 19.9 per cent, the pandemic remains one of Namibia’s most urgent developmental challenges. There is inadequate capacity and poverty remains widespread poverty (28%). Unemployment in 2008 stood at a high 36.7 per cent. Rooted in the country’s long history of colonialism and apartheid, inequality remains very high. Namibia has a Gini Coefficient of 0.6, implying that growth policies will have to be pro-poor and focus on the most vulnerable sections of the population.

Development Policy

The National Development Plans (NDPs) are the main instruments for implementing the policies and programmes to achieve Vision 2030. These have been designed to reverse a colonial legacy of high income inequality and poverty through pro-active policies that include Black Empowerment Programme, Green Schemes, and land reform. The Third National Development Plan (NDP3), (2007/08-2011/12), adopted by Parliament in June 2008, is an attempt to translate Vision 2030 objectives into concrete policies and actions. It is a medium-term implementation tool for the  Vision 2030 milestones. Its main theme is “Accelerated Economic Growth and Deepening Rural Development”. More specifically, the plan seeks to achieve the medium term objectives of sustainable growth,  employment creation, reduction of poverty and inequality in income distribution across the various regions, environmental sustainability, gender equality and important reductions in HIV/AIDS prevalence.

NDP3 is poverty focused and contains benchmarks consistent with the country’s Poverty Reduction Strategy (PRS) – the National Poverty Reduction Action Programme (NPRAP) of 1998. The PRS focuses on increasing agricultural production and productivity, promoting community based tourism, promoting the development of small and medium scale enterprises, strengthening social safety nets, and generating labour intensive public works.

Bank Group Strategy

In the last quarter of 2008, the AfDB finalized its Country Strategy Paper (CSP) for Namibia for the period 2009-2013. The Bank Group priority areas in the CSP are aligned with the country’s development agenda, outlined in Namibia’s Third National Development Plan (NDP3) of June 2008. In line with the objectives of Namibia’s Third National Development Plan (NDP3), the new Bank Group Strategy will continue to address the challenges of poverty, inequality and unemployment. It will do this by focusing on two main pillars. These are enhancing the competitiveness of Namibia’s private sector, and raising agricultural productivity and food security. The Bank will also provide advisory services through economic and sector work and support the development of institutional capacity.

Support to the private sector is designed to give an impetus to the growth of small and medium scale enterprises, intensification of international business, and promotion of regional integration. It is also designed to support efforts to diversify the Namibian economy away from minerals into areas such as tourism and financial services. Intervention in the agricultural sector is expected to contribute towards increased food security, increased incomes of farmers and poverty reduction.

As a middle income country, Namibia’s borrowing programme will be restricted to the non- concessionary ADB window.