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N$19billion received in foreign aid to date

Mon, 13 April 2015 12:36
by Charmaine Ngatjiheue
News Flash

Namibia has received N$19
billion from foreign aid to fund
development projects between 2004
and 2014.
This was to assist with Namibia’s
development over the years and assist the
Namibian economy grow as it was premature
at the time.
Over the past 10 years, in terms of grants,
the development partners ranked in accordance
with the aid provided to Namibia on average
starting with countries like the United States
of America (USA), Germany, European Union
(EU), China, and the United Nations (UN).
Meanwhile, Namibia’s Official Donor
Assistance (ODA) contributed around 20%
of gross fixed capital (GFC) formation in the
1990s but in the years, the GFC has fallen
to under 5%. However, the best scenario is
that ODA flows have not weakened revenue
collection efforts.
In addition, due to the reduction in ODA,
Namibia as an Upper Middle Income Country
has come to terms with the fact that most of
its development partners have withdrawn aid
support from the country hence demonstrating
that the country can manage its own
development.
However, Namibia still appreciates the
support it receives from few development
partners that are still with it.
In the recent years, Namibia’s main interest
is not grant aid but technical assistance in
terms of skills development or transfer in order
for the Namibian people to have the required
capacity that will bring the development it
needs and can be able to sustain it.
The Ministry in the Presidency Responsible
for National Planning’ Public Relations
Officer, Fillemon Nangonya said the above
mentioned Development Partners provided
their support by sector such as the USA’s
Millennium Challenge Account (MCA-N),
President’s Emergency Plan for AIDS Relief
(PEPFAR), Health, Education, Environment,
Tourism and Agriculture.
The Millennium Challenge Account
Namibia (MCA-N) spent a combined value
of approximately N$600m by renovating,
upgrading, and equipping 48 schools in 10 out
of the 14 regions.
Germany supported sectors through
Land Reform, Environment and Tourism,
Education, Roads, Transport, Public Finance
Management, HIV/Aids, Special Initiative,
Water Resource Management, National Parks
and Capacity Building.
In addition to Germany’s contribution, its
government has contributed equipment worth
N$353 million to Namibia since it joined
the Military Equipment Aid Programme as a
recipient country in 1992.
The first Equipment Aid Programme
agreement between Germany and Namibia
worth approximately N$311.6 million (€24
million) was signed in 1992.
In mid-2013, the sixth agreement was
signed between Namibia and Germany, this
agreement is worth N$41.5 million (€3.2
million) and will run until late 2016; in
addition, all projects were co-funded by the
Namibian government by up to 50%.
Nangonya noted that the EU supported
Rural Development, Education, Support to
Non-State Actors (Civil Society Capacity
Building), Public Finance, Public Sector
Reform (Performance Management System),
Parliament, Agriculture, Trade, Environment,
Capacity Building, Water Supply and
Sanitation and Rehabilitation of Roads in
Northern Namibia.
The European Union (EU) reserved roughly
N$483 m (€35m) to assist the Namibian
government in the development of water
supply and sanitation, a move that was aimed
at aiding in the National Sanitation Strategy
implemented five years ago.
In addition, from the EU Namibia’s
agricultural sector will receive financial
support to the tune of N$954 million (68
million Euros) for the period 2014 to 2020
among other bilateral support initiatives of
which the funding is primarily targeted at the
livestock and communal farming areas.
“China supported sectors like Aquaculture,
Construction, Capacity Building, Defence
and Equipment while the UN supported
sectors in Agriculture, Housing, Education
and Training, Safety & Security, Gender
Equality and Women Empowerment, Child
Protection and Welfare, Health (including
HIV/AIDS), Research, Culture, Tourism,
Statistics, Emergency Preparedness and
Impact Mitigation, Immigration and Refugees
Affairs, Volunteerism, Social Development,
Governance, Capacity Development, and
Environment,” said Nangonya.
Nangonya noted that in terms of the
benefits of Foreign aid to the Namibian
Economy, aid is mobilised to augment local
resources to implement priority programmes
of the country.
“This is in the form of funds to implement
priority projects or capacity building for the
required skills that would contribute to the
realization of national development goals and
ultimately vision 2030,” noted Nangonya.
He however reiterated that Namibia is not
an aid dependent economy as it can perform
many of the core functions of government,
such as operations and maintenance, or
the delivery of basic public services, using
government funding.