The African Development Bank Group has approved a landmark $1.78 billion strategy to support Namibia’s economic transformation and job creation over the next five years. The Country Strategy Paper, endorsed by the Bank’s Board of Directors, will guide the institution’s support to the country from 2025 to 2030 and is aligned with Namibia’s Vision 2030, the Bank Group’s Four Cardinal Points, and the African Union’s Agenda 2063.
Namibia is currently battling some of the toughest economic challenges in Southern Africa, including a youth unemployment rate exceeding 40 percent and a significant decline in per capita income, which has dropped from $5,942 in 2012 to $4,240 in 2024. Against this backdrop, the Bank believes the new strategy represents a crucial turning point.
“This strategy marks a pivotal moment for Namibia’s development,” said Moono Mupotola, the Bank Group’s Deputy Director General for Southern Africa and Country Manager for Namibia. She explained that the focus on infrastructure and human capital development would create the conditions for growth that benefits all Namibians, especially young people who remain excluded from formal employment.
The newly approved strategy concentrates on two major areas. The first involves substantial investment in transport, energy, and water infrastructure to reduce business costs and improve productivity. These interventions are intended to position Namibia as a regional logistics hub, strengthen trade links under the African Continental Free Trade Area, and expand access to clean water and sanitation for rural communities. They will also help the country move closer to universal electricity access, which currently stands at 59.5 percent, and deepen the role of renewable energy in its power mix.
The second area seeks to build human capital by expanding technical and vocational training that aligns with labour market needs. The Bank plans to support micro, small, and medium enterprises and promote women’s economic empowerment, all aimed at diversifying the Namibian economy beyond mining and agriculture. By doing so, the strategy is expected to create thousands of direct and indirect jobs and strengthen the country’s manufacturing capacity.
Mupotola noted that Namibia has been affected by global disruptions, including recent tariff increases by the United States and reductions in international development assistance. She said the new strategy would help the country withstand such shocks by diversifying its export markets, integrating more deeply with regional economies, and building stronger domestic productive capacities.
The Bank’s new commitments build on a decade of work in Namibia, during which it invested more than $658 million in key projects, including the expansion of the Walvis Bay Port, major railway upgrades, and improvements in 27 educational institutions across all 14 regions. The first operations under the new strategy are expected to begin in early 2026, with officials noting that it also supports Namibia’s ambitions to lead Africa’s emerging green hydrogen industry.
