German state-owned development bank, KfW says Namibia could take a while to recover from its current economic crisis than expected.
KfW Director, Uwe Stoll, without giving a timeframe, told the Windhoek Observer that strong policy reforms were required to steer the country to recovery.
“Namibia, is a small economy and is experiencing a deep recession right now and we all take note that it will take longer to get out of this economic crisis than experts and all of us expected. The country and I think politicians are aware of this. There is an urgent need for reforms and strong, and reliable policies to be put in place to regain investors’ trust as in the past and strengthen the economy,” he said.
This comes as the Bank of Namibia has revised the country’s economic outlook for 2019 and is now forecasting a 1,7 percent contraction in the domestic economy for 2019.
Stoll, whose term comes to an end in November, said as part of its contribution to the economic recovery of the country, KfW was providing funding support to various sectors in the domestic economy.
“German Development Cooperation is supporting GRN in crucial fields like SOE reforms, implementing the GRN industrialization policy with its growth at home strategy and improving conditions for private sector engagement. In addition, crucial productive investments are supported such as in securing water supply for the country, providing essential logistic infrastructure and affordable credit lines for local industries, SMEs and agriculture – all this being essential to foster the sustainable economic development of Namibia,” he said.
Stoll said close to N$5 billion had been provided through grants and concessional loans to Namibian since 2017.
“In the past two Government Negotiations in 2017 and 2019 in total 133 Million Euro and 153 Million Euro have been committed by the German Government for joint development cooperation projects. The funds are for technical and financial cooperation and consist of grant- and concessional loan financing,” he said.
“The support KfW has been providing in the past and will continue to provide in the future is oriented towards longer term economic and social benefits and impacts to the population of Namibia and the economy. Together with my colleagues in the WHK office and project managers and technical experts in our HQ in Frankfurt, we are working as a team to support GRN in the realization of successful projects. When I look back at some of the infrastructure investments KfW was involved in, one easily realizes that they belong to the backbone of Namibia`s infrastructure.”