Windhoek, Namibia, July 8, 2022 — Namibia can transform its economy, create jobs, reduce inequality, and recover faster from the impact of COVID-19 by deepening private sector reforms and increasing private sector participation in its renewable energy, climate-smart agribusiness, housing, and other key sectors, according to a report published today by IFC and the World Bank.
The report, the Namibia Country Private Sector Diagnostic (CPSD), highlights opportunities for Namibia to attract investment and achieve sustainable private sector-driven growth. The report suggests policy reforms to encourage competition and public private partnerships (PPPs), especially in the energy and water sectors.
The CPSD further points to the need for greater efficiencies in Namibia's logistics and trade facilitation sectors and highlights untapped opportunities in digital transformation and the water sector for green and resilient growth.
After decades of strong growth, Namibia's economy has more recently slowed, a process worsened by the COVID-19 pandemic. In 2020, with the commodities market in disarray, drought, and other factors, Namibia's economy contracted by 8.5 percent. Even so, the country offers excellent investment and growth opportunities especially in renewable energy, climate-smart agribusiness, and housing, according to the CPSD.
"The World Bank is committed to supporting the government to enact reforms aimed at attracting private investment to diversify the economy and create jobs," said Marie Francoise Marie-Nelly, World Bank Country Director for Namibia.
"Namibia has the opportunity to create a more conducive business environment, revitalize its private sector, and reposition its economy on a greener, more resilient and inclusive path," said Adamou Labara, IFC's Country Manager for Namibia. "The CPSD identifies ways to unlock private sector development in key sectors to address challenges of high youth unemployment, poverty, and inequality."
The CPSD notes Namibia's world-class but largely untapped renewable energy resources as particularly poised for development. The country has one of the highest solar irradiation levels globally and excellent wind resources. Strengthening private sector participation in renewable energy will enable Namibia to transition into a regional, green power supplier.
Namibia also shows promise for climate-smart investments in the livestock and horticulture sectors, which could generate income and employment. The private sector is well placed to help develop and scale approaches for innovative water solutions such as desalination, where Namibia is already a leader.
The CPSD aligns closely with Namibia's Fifth National Development Plan and the Harambee Prosperity Plans. The 2021 Industrial Policy and Vision 2030, both development plans issued by the government of Namibia, emphasize the role of the private sector in reaching Namibia's goal of becoming a high-income, industrialized nation focused on increased innovation, productivity, and value addition, one with vibrant Micro Small and Medium Enterprise (MSME) and export sectors.
About the Country Private Sector Diagnostic (CPSD).
Launched in 2017 as a corporate priority, the World Bank Group's Country Private Sector Diagnostics support the institution's strategic focus on expanding private investment and leveraging private solutions to address development challenges in client countries. The diagnostics assess critical constraints to private sector engagement and identify policy and regulatory reforms needed to unleash private sector growth. They are jointly delivered by the World Bank and IFC. For more information, visit www.ifc.org/cpsd.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org.
About the World Bank
The World Bank provides financing, global knowledge, and long-term commitment to help low- and middle-income countries end poverty, achieve sustainable growth, and invest in opportunity for all. We comprise the International Bank for Reconstruction and Development (IBRD), the world's largest development bank, and the International Development Association (IDA), one of the largest sources of funding for the world's poorest countries. With the other World Bank Group institutions as well as partners across the public and private sectors, we are helping build solutions to the global challenges of the 21st century in all major sectors of development. A world where no one lives in poverty and everyone has the opportunity for a better life is within our reach.
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