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, the 'Namibia Country Private Sector Diagnostic (CPSD)' report published by development finance institution the International Finance Corporation (IFC) and the World Bank states.

The CPSD highlights opportunities for Namibia to attract investment and achieve sustainable, private sector-driven growth. It also suggests policy reforms to encourage competition and public-private partnerships (PPPs), especially in the energy and water sectors.

The report 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%.

“Even so, the country offers excellent investment and growth opportunities especially in renewable energy, climate-smart agribusiness and housing,” the CPSD report shows.

Further, the CPSD notes Namibia’s world-class but largely untapped renewable energy resources as being 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,” the report indicates.

Additionally, Namibia 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 notes.

“The World Bank is committed to supporting the government to enact reforms aimed at attracting private investment to diversify the economy and create jobs,” says World Bank Namibia country director Marie Francoise Marie-Nelly.

“Namibia has the opportunity to create a more conducive business environment, revitalise its private sector and reposition its economy on a greener, more resilient and inclusive path.

“The CPSD identifies ways to unlock private sector development in key sectors to address challenges of high youth unemployment, poverty, and inequality,” adds IFC Namibia country manager Adamou Labara.

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, emphasise the role of the private sector in reaching Namibia’s goal of becoming a high-income, industrialised nation focused on increased innovation, productivity and value addition, with vibrant small, medium-sized and microenterprise and export sectors.