Windhoek – Namibia’s plans to breathe life into its economy in got a shot in the arm this week following the approval of a US$100.27 million loan from the African Development Bank (AFDB).
Ministry of Finance chief PR officer Tonateni Shidhudhu said the loan was granted on the strength of Namibia’s credit worthiness.
“The approval follows the completion of economic governance and competitiveness support programme (2017-2020) which has achieved significant results in arrears of fiscal consolidation, public financial management and improvements in the business environment. However COVID-19 threatens to reverse some of these gains,” Shidhudhu said
He said Namibia would repay the loan over a 15-year period with “favourable” conditions, and would use the money to enhance private sector-led agriculture development, fiscal sustainability and industrial sector transformation.
Finance Minister Ipumbu Shiimi said, “The loan approval comes at an opportune time as we work towards reviving the economy.”
Minister Shiimi added that the loan would boost implementation of the Harambee Prosperity Plan II, Namibia’s the economic development blueprint.
The minister said the loan would go a long way in creating fiscal space following a challenging year characterised by company closures, job losses and a liquidity squeeze.