AfDB approves $1.78bn strategy to transform Namibia’s economy, tackle job crisis

The African Development Bank Group has approved a landmark $1.78 billion Country Strategy Paper (CSP) for Namibia, outlining a six-year plan to accelerate economic transformation, create jobs and strengthen human capital in one of the world’s most unequal countries.

The strategy, covering 2025–2030, was endorsed by the Bank’s Board of Directors in Pretoria, South Africa, and aligns with Namibia’s Vision 2030, the AfDB’s Four Cardinal Points, and the African Union’s Agenda 2063.

Moono Mupotola, the Bank Group’s Deputy Director General for Southern Africa and Country Manager for Namibia, described the initiative as “a pivotal moment” for the country’s development trajectory.

“By focusing on strategic infrastructure and human capital development, we are laying the foundation for inclusive growth that will benefit all Namibians, particularly the young,” she said.

Tackling inequality and youth unemployment

The AfDB noted that Namibia faces persistent structural challenges, including extreme inequality, shrinking incomes, and soaring joblessness. Youth unemployment stands above 40 percent, while the country’s per capita income has declined sharply – from $5,942 in 2012 to $4,240 in 2024.

The CSP aims to reverse these trends through targeted investments designed to improve productivity, cut business costs and expand economic opportunities.

Two strategic pillars

The approved strategy focuses on two major priorities:

1. Critical infrastructure development

The Bank will finance large-scale projects in transport, energy and water, sectors considered essential for lowering logistics costs, supporting industrial growth and positioning Namibia as a regional trade and logistics hub.

Key interventions will include:

Upgrading regional transport corridors to strengthen trade with Angola, Zambia and other SADC countries

Expanding renewable energy capacity to enhance energy security

Increasing rural access to clean water and sanitation

Supporting cross-border trade facilitation under the African Continental Free Trade Area (AfCFTA)

These investments are expected to boost electricity access from the current 59.5 percent toward universal coverage, reduce logistics bottlenecks and support Namibia’s climate commitments, especially its growing green hydrogen ambitions.

2. Human capital development and jobs

The second focus area targets Namibia’s skills gap, particularly among young people. It includes:

Expanding technical and vocational education aligned with labour market needs

Supporting micro, small and medium-sized enterprises (MSMEs)

Promoting women’s economic empowerment

Creating stronger pathways from education to employment

The Bank expects these initiatives to generate thousands of direct and indirect jobs, diversify the economy beyond agriculture and mining, deepen manufacturing capacity and integrate MSMEs into regional value chains.

Responding to global economic pressures

Mupotola noted that recent global shifts, including U.S. tariff hikes and cuts in international development assistance, have increased pressure on Namibia’s economy.

“Our strategy strengthens resilience by diversifying export markets, enhancing regional integration, and building domestic productive capacities,” she said.

Backed by a decade of AfDB investment

The newly approved strategy builds on more than ten years of AfDB engagement in Namibia. The Bank has already invested $658.1 million in projects such as:

The expansion of Walvis Bay Port

Major railway upgrades

Construction and rehabilitation of 27 educational institutions across all 14 regions

Implementation of the new strategy begins immediately, with the first set of projects expected to roll out in early 2026.