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, although the country was reclassified as a lower-middle-income economy in 2025 following a decline in gross national income per capita.

Namibia remains one of the most unequal countries in the world. 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.

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Namibia remains a highly unequal economy, with growth that has not been sufficiently inclusive and job creation that remains limited. Poverty reduction has slowed in recent years, and unemployment continues to disproportionately affect youth and women.

The economy is relatively undiversified and remains heavily dependent on mining, which drives exports and fiscal revenues. Services, including financial services, 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.

Economic growth slowed to 2.8% in 2025, down from 3.7% in 2024, supported by construction, transport, financial services, and mining (excluding diamonds). Inflation declined to 3.5% in 2025. Poverty is estimated at 28.1% (based on the $3/day international poverty line), while growth in per capita income remains modest.

Macroeconomic conditions remain constrained by fiscal pressures. The fiscal deficit is estimated at 6.6% of GDP in 2025, with public debt at 72.4% of GDP. Declining Southern Africa Customs Union (SACU) revenues, rising debt service costs, and climate-related risks continue to limit fiscal space and weigh growth prospects.

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

In macro-fiscal management, the Bank is supporting an implementation-focused Public Finance Review to identify efficiency gains across priority sectors and strengthen fiscal sustainability. Discussions are also underway on public financial management reforms, including budget system modernization and e-procurement.

In energy, support is anchored in Namibia’s National Energy Compact launched in December 2025 as part of Mission 300. The World Bank is financing the Transmission Expansion and Energy Storage Projectand supporting electrification, transmission, and regional integration. Support is also being provided for green industrialization, including green hydrogen, skills development, and preparation of investment platforms such as GREEN SEED and ASCENT.

Additional engagement includes 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 World Bank Group Guarantee Platform, housed at MIGA, has an active exposure of $29.4 million in Namibia, spanning four key projects in the energy and tourism sectors. MIGA’s suite of products available in Namibia under the Platform includes its four-point cover—Transfer Restriction, Expropriation, War and Civil Disturbance, and Breach of Contract—alongside Trade Finance guarantees. Under the Platform, MIGA will deepen collaboration across the Group to de-risk foreign investment and focus on projects that reflect the core objectives to scale impact, mobilize private capital, support climate-aligned investments, and drive economic growth and job creation.

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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.

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In 2025, the Transmission Expansion and Energy Storage Project started supporting investments in transmission infrastructure, battery storage, and technical assistance to strengthen energy security and enable greater integration of renewable energy.

To support fiscal reform efforts, an implementation-focused Public Finance Review is underway to identify efficiency gains across priority sectors and inform policy actions to strengthen fiscal sustainability and improve the effectiveness of public spending.

A 2025 Public Expenditure Review in the agriculture sector, Harvesting Prosperity: Inclusive Economic Growth Through Strategic Agriculture Transformation in Namibia, provided 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 is also supporting Namibia’s green industrialization agenda, including skills development for green industries and preparation of investment platforms to mobilize private sector participation and create jobs.

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