The World Bank in Namibia

Namibia is an arid country located on the west coast of Southern Africa. Characterized by vast semi-desert landscapes covering 825,229 square kilometers with savanna and dry woodlands, Namibia is the driest country in sub-Saharan Africa. It has one of the world's lowest population densities at just 3 million people. The country is multi-racial and multi-ethnic, with at least 11 distinct ethnic groups. Since gaining independence in 1990, Namibia has made substantial economic progress, including investments in infrastructure, education, and public health which have led to significant poverty reduction and increased access to essential services, positioning Namibia as an upper-middle-income country.

This progress continues under new leadership following the November 2024 elections, which saw Netumbo Nandi-Ndaitwah elected as Namibia's first female president. While the economy draws significant income from mining, along with agriculture and tourism, the legacy of colonial rule and racial segregation has resulted in one of the world's most unequal societies. Key challenges persist, including high unemployment (36.9%), persistent poverty, acute climate vulnerability, and public debt at 70.3% of GDP.

ECONOMY

Over the past decade, Namibia’s economic growth has been volatile, averaging 3.6%, not enough to reduce one of the world’s highest unemployment rates (over 30%) and extreme inequality (Gini coefficient of 59.1). Poverty remains high relative to the country’s income level, exacerbated by severe droughts and high reliance on commodity exports.

However, Namibia has a unique chance to transform its economy. Recent major oil discoveries and a vast potential for green hydrogen offer a pathway to rapid growth and job creation.

Namibia's economy expanded by about 3% in the first half of 2025, driven by retail, financial services, and government activities, though diamond production and agriculture declined. GDP growth is forecast to dip to 3.1% in 2025 before rising to 3.5% in 2026. Major new energy projects could significantly boost medium-term growth. Key challenges are high unemployment (36.9%), skills shortages, and extreme inequality (Gini 59.1). With lower Southern African Customs Union (SACU) revenues, prudent fiscal policy is a priority to reduce the public-debt-to-GDP ratio. Poverty is projected to remain high at 27.5% in 2025 (with the poverty line set at $3/day).

Economic snapshot:

• GDP growth (2025f): 3.1%
• Inflation (July 2025): 3.5%
• Unemployment: 36.9%
• Poverty rate ($3/day, 2025 projected.): 27.5%
• Inequality (2022): Gini coefficient 59.1
• Public Debt (FY2024/25): 70.3% of GDP

Key economic sectors:

• Mining: diamonds, uranium
• Services: retail, finance, tourism
• Agriculture: livestock
• Emerging: green hydrogen, renewable energy

Last Updated: Sep 30, 2025

Namibia faces persistent inequalities rooted in its colonial past, with concentrated land and economic power, limited access to services, and stark socioeconomic divides. Poverty reduction has been uneven, and the country lags in health, education, and employment, which is particularly affecting youth and women. To address these challenges, the government is pursuing green industrialization, leveraging abundant renewable energy and mineral resources such as solar, wind, copper, lithium, and rare earths. Investments in green hydrogen aim to support clean energy, decarbonize industries, and stimulate new economic activities, export diversification, and jobs.

The World Bank is supporting Namibia’s energy transition through several initiatives. A newly approved Transmission Expansion and Energy Storage (TEES) Project co-financed with the Green Climate Fund and IBRD will strengthen the power grid and enable greater integration of renewable energy, including future power trade in the Southern Africa Power Pool. Technical assistance will also help NamPower develop bankable renewable energy projects with socioeconomic benefits.

The World Bank Group is supporting the government in achieving its ambitious housing targets by providing technical analysis and advisory to the National Housing Enterprise (NHE) and to local authorities to address strategic bottlenecks in the housing delivery value chain.

The Agriculture Public Expenditure Review (Ag PER) offers a comprehensive strategy to transform the agriculture sector into an engine of inclusive growth. Its recommendations focus on enhancing the sustainability and competitiveness of livestock value chains, attracting private investment, and improving the effectiveness of public spending, notably by leveraging climate-smart agriculture to unlock additional financing.

The Bank is also supporting the government in improving the efficiency and effectiveness of social protection programs and advancing youth employment initiatives.

Last Updated: Sep 30, 2025

The World Bank Group's Country Partnership Framework (CPF) for Namibia FY25-FY29 supports the government's goals of reducing extreme inequality and promoting sustainable, resilient growth. The CPF’s overarching goal is to support Namibia in promoting economic growth and reducing inequality in a sustainable manner by facilitating job creation and better access to quality public services. This goal is aligned with the Government of Namibia’s strategic development priorities as articulated in Vision 2030 and the Second Harambee Prosperity Plan for 2020-2025.

The five-year CPF is centered on two high-level, long-term outcomes: (i) increased employment, and (ii) improved access to quality public services, underpinned by a cross-cutting theme of digital transformation. The first high-level outcome focuses on increased access to renewable and green energy, an improved enabling environment for private sector development, and strengthened macro-fiscal management. The second high-level outcome focuses on improved efficiency in education and health services and improved housing and urban services. Through the cross-cutting theme of digital technology integration, the CPF aims to drive economic growth by enhancing the accessibility and affordability of digital services, improving tax administration, and strengthening service delivery.

The CPF operationalizes the One World Bank Group approach through the Joint Country Representation model. The approach focuses on mobilizing private capital using a comprehensive range of instruments from the International Bank for Reconstruction and Development (IBRD), the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA).

Last Updated: Sep 30, 2025

The World Bank has supported the development of Namibia’s financial sector over the past several years. In 2025, the World Bank undertook a State-Owned Financial Institution (SOFI) assessment of the Development Bank of Namibia (DBN) and shared its findings and recommendations with DBN and the Ministry of Finance. The World Bank has also provided multi-year technical assistance (TA) on financial consumer protection to the Namibia Financial Institutions Supervisory Authority (NAMFISA), the non-bank regulator.

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, the International Monetary Fund (IMF), the African Development Bank (AfDB), the United Nations agencies, and various bilateral donors including Germany (GIZ) and the European Union. These partnerships ensure coordinated support for Namibia's national development priorities, particularly in managing fiscal challenges and climate resilience.

Last Updated: Sep 30, 2025