Namibia

Namibia is an arid country on the southwest coast of Africa, characterized by vast semi-desert landscapes spanning 825,229 square kilometres. It is the driest country in sub-Saharan Africa and one of the least densely populated, with just over 3.1 million people. Namibia is a diverse, multi-ethnic society with at least 11 distinct ethnic groups. Since independence in 1990, the country has established strong democratic institutions and achieved important development gains, including expanded access to infrastructure, education, and health services. These gains supported Namibia’s transition to upper-middle-income status in the late 2000s. However, Namibia’s slow economic growth and rapid population rise–about 15% higher than population projections according to the 2023 census–resulted in its reclassification from upper- to lower-middle-income in 2025.

Namibia remains one of the most unequal countries in the world (Gini index of 59.1). Historical legacies of colonial rule and apartheid continue to shape disparities in income, land ownership, and access to economic opportunities. Poverty remains elevated, unemployment is high, and climate vulnerability is significant. Growth has been uneven, and outcomes in health, and education remain constrained.

Following the November 2024 elections, President Netumbo Nandi-Ndaitwah took office in March 2025 as Namibia’s first female president. Government priorities focus on fiscal discipline, service delivery, job creation, and economic transformation, as reflected in the National Development Plan 6, which was launched on July 21, 2025.

Namibia remains a highly unequal economy, with growth that has not been sufficiently inclusive and job creation that remains limited. Poverty reduction has slowed, with the poverty rate estimated at 28.3% in 2025 (based on the $3 per person per day international poverty line), while unemployment remains high at 36.9% of the working-age population (excluding own-use production work), disproportionately affecting youth and women.

The economy is relatively undiversified, dependent on mining, which drives exports and fiscal revenues. Services, including financial, transport, and wholesale and retail trade, account for a growing share of GDP. Agriculture and tourism remain important for livelihoods and employment, particularly in rural areas.

Following growth of 1.7% in 2025, the slowest since 2021, real GDP growth remained modest at 2% year-over-year in Q1 2026, down from 2.8% a year earlier. Over the past few months, growth has been driven by non-mining sectors, particularly wholesale and retail trade, financial services, public administration, and agriculture. Diamond output declined amid growing competition from lab-grown diamonds, while gold production fell during the transition of the two largest mines to underground mining.

The short-term outlook remains subdued, with real GDP growth projected to reach 1.9% in 2026, constrained by higher energy prices stemming from the Middle East conflict and a tight fiscal stance. Livestock production is expected to grow, having recovered from the 2024 drought, while abundant rainfall in 2025 should support a strong agricultural harvest in 2026. However, an El Niño-induced drought could disrupt and weigh on the 2027 harvest. Improved water availability should support the water and electricity sectors, while a well-capitalized financial system is expected to remain supportive of economic activity.

Macroeconomic conditions remain constrained by fiscal pressures. The fiscal deficit is estimated at 6.5% of GDP in 2025, with public debt at 67.5% of GDP. Low SACU revenues, rising debt service costs, rigid expenditures, and climate-related risks continue to limit fiscal space and weigh growth prospects.

The World Bank Group supports Namibia through financing, analytics, and advisory services focused on resilience, inclusion, and job creation.

In macro-fiscal management, the World Bank is supporting a Public Finance Review to identify efficiency gains across sectors and strengthen fiscal sustainability.

In energy, support is anchored in Namibia’s National Energy Compact launched in December 2025, with World Bank financing going to the Transmission Expansion and Energy Storage Project, supporting electrification, transmission, and regional integration. Additional support is going to the government for development of investment programs for green industrialization, including green hydrogen, skills development, and preparation of investment platforms such as the Namibia Green Energy and Infrastructure for Socio Economic and Equitable Development and Accelerating Sustainable and Clean Energy Access Transformation (ASCENT).

Further support focuses on climate-resilient agriculture, social protection and youth employment, digital development, housing and urban services, and financial sector strengthening, with the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) supporting private investment.

The IFC supports and invests directly through debt, equity, and guarantee instruments. Support centers on renewable energy, digital infrastructure, affordable housing, agribusiness, and tourism as key contributors to job creation and diversification. IFC advisory services support investment climate reform, expanded access to finance for MSMEs and financial institutions, and Public-Private Partnership (PPP) transaction advisory.

The WBG Guarantee Platform, housed at MIGA, has an active exposure of $29.4 million in Namibia, spanning four projects in energy and tourism. MIGA’s products available in Namibia include—Transfer Restriction, Expropriation, War and Civil Disturbance, and Breach of Contract—alongside Trade Finance guarantees. MIGA will deepen collaboration across the Group to de-risk foreign investment and focus on projects that reflect the Platform’s core objectives.

The World Bank Group's Country Partnership Framework (CPF) for Namibia (FY25-FY29) supports Namibia’s efforts to promote inclusive growth and reduce inequality. It aligns with national priorities and is structured around two high-level outcomes: increased employment and improved access to quality public services, underpinned by digital transformation.

The CPF focuses on five key objectives: improving the enabling environment for private sector development; increasing access to renewable and green energy; strengthening macro-fiscal management; improving efficiency in education and health services; and improving housing and urban services.

The CPF reflects a One World Bank Group approach to mobilize financing, support reforms, and crowd in private investment. This includes support for energy access, green industrialization, fiscal reform, agriculture, digital systems, social protection, housing, and financial sector development.

Technical support to the National Assembly and National Council (the Parliament) has helped accelerate the adoption of digital technologies (an e-Parliament system) and improve parliamentary processes, increasing the effectiveness of its core functions of lawmaking, representation, oversight, and engagement with citizens.

A report on Universal Digital Access in the country highlights the opportunity for both the government and telecommunication operators to unlock further digital transformation and economic development by increasing the accessibility and affordability of broadband internet services.

Partners

The World Bank Group collaborates with the Government of Namibia, International Monetary Fund (IMF), African Development Bank (AfDB), Bank of Namibia, Environment Investment Fund of Namibia,  Namibia Financial Institutions Supervisory Authority (NAMFISA), United Nations agencies, and various bilateral donors including The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)  and the European Union (EU). These partnerships ensure coordinated support for Namibia's national development priorities, particularly in managing fiscal challenges and climate resilience.

The World Bank Group has supported Namibia’s development priorities through a combination of analytical work, technical assistance, and financing. In 2025, the Transmission Expansion and Energy Storage Project became effective, supporting investments in transmission infrastructure, battery storage, and technical assistance to strengthen energy security and enable greater integration of renewable energy.

In the agriculture sector, the World Bank completed a Public Expenditure Review in 2025, providing recommendations to improve productivity, strengthen climate resilience, and enhance the efficiency of public spending. Follow-on work includes support for climate-resilient agribusiness and improved targeting of agricultural policies.

In social protection, World Bank analysis of the social grants system highlights the potential to strengthen its efficiency, effectiveness, and equity, through: development of a dynamic and digital social registry that could serve as a national platform and single portal of entry for social grants and other pro-poor social, economic inclusion, and employment activation programs.

The World Bank has assisted the Government of Namibia in the green industrialization agenda with skills development for green industries and preparation of investment platforms to mobilize private sector participation and create jobs.