Namibia’s upper middle-income status ‘limiting’

Namibia’s upper middle-income country classification keeps it from receiving external financing.

This is according to the African Development Bank’s 2024 Country Focus Report.

Namibia has not been eligible for concessional resources since its status changed, the report says.

“This is limiting its capacity to access resources at scale and is a cause for concern for the country,” it says.

Namibia ranks as one of the world’s most unequal countries with a Gini coefficient of 59,1 – second only to South Africa.

According to the report, Namibia was allocated special drawing rights (SDR ) of 183 million out of a total allocation of SDR 650 billion.

Special drawing rights are supplementary foreign exchange reserve assets defined and maintained by the International Monetary Fund (IMF).

“This amount is grossly inadequate to meet Namibia’s development challenges,” the report says.

The African Development Bank (AfDB) has recommended a reform of the international aid architecture order for the country to have more resources available.

“Reform of the international aid architecture could significantly increase financing for Namibia’s structural transformation and catapult the continent to a higher level of economic development,” the report says.

It says additional resources will be available to Namibia when the IMF changes its allocation system.

“Currently the allocation criteria is based on quotas rather than needs.

This will enable Namibia to scale up its development interventions. Fiscal incentives for the private sector will also provide more resources to the country.”