EU-Namibia Partnership

Girls fetch water from a well in Namibia. The EU's latest national indicative program for Namibia, which will be carried out through 2020, will focus on financing education programs and strengthening livestock production chains. Photo by: Sue Kellerman / CC BY-NC-ND Namibia is regarded as a country with stable political and macroeconomic conditions. Yet in spite of reaching upper-middle-income status in 2009, challenges to achieving inclusive development still persist. The European Union notes income inequality as a major concern, clearly elucidated by the concentration of poverty in rural areas where 41 percent of dwellers are considered poor. This is a stark contrast to the level of poverty in urban communities which only reaches 14 percent. Meanwhile, recent World Bank data pegs the overall unemployment rate at 28 percent, remaining more or less unchanged since 1990. This, coupled with the lack of skilled labor, makes for a difficult business environment that debilitates growth for small, medium and large enterprises in the country. Namibia still depends highly on agriculture, both for employment and as a source of sustenance. However, weak market linkages and the effects of climate change deter sectoral growth. Livestock farming, which accounts for 76 percent of the country’s total agricultural output, is seen as a major economic driver – but the situation is far from ideal. Although most animals are located in communal zones, producers of livestock in these noncommercial areas only account for 6 percent of outputs. The EU attributes this to veterinary zoning measures that create constraints for livestock producers outside the foot and mouth disease-free zones. This means that in order to bridge the gap between rural producers and markets, attention has to be given toward ensuring the quality and safety of local livestock. Further, both the government and the EU agree that national education systems must be strengthened to keep pace with international standards. Early childhood development and pre-primary education have been identified as critical points for improvement, with high repetition rates among first grade students. There is also a growing need for vocational education and training, with the job market’s increasing demand for skilled labor. In light of these issues, Namibia has designed its fourth national development plan around three central themes: higher economic growth, job creation and income equality. These principles, in turn, guided the EU’s latest national indicative program for Namibia, which will be carried out through 2020. Funding levels and priorities The EU has earmarked 68 million euros ($76.44 million) from the 11th European Development Fund to support development projects in Namibia. This comprises the A-allocation of the assistance package, which will be used to finance macroeconomic support, sectoral policies, programs and projects. A B-allocation will also be made available for unforeseen expenditures such as emergency response and recovery efforts, humanitarian aid and debt relief contributions. Unlike the EU’s A-allocation, the amount for the B envelope will only be determined as the need arises. Below is a breakdown of EU funding for fiscal year’s 2014–2020. Education The EU intends to support programs that will broaden access to, and increase the quality of early childhood development and pre-primary education. This component will take up 27 million euros of the total allocation for education and skills development. Interventions will seek to scale up facilities and establish better management and institutional frameworks in the education sector. The remaining 9 million euros will finance programs for vocational education and training. This component will allow vocational education to be more accessible while also ensuring increased levels of completion among students. The program will also seek to develop skills that are relevant to the job market in order to reduce unemployment in the country. Agriculture In agriculture, attention will be given toward strengthening livestock production chains in communal areas. This will be achieved by enhancing veterinary services to allow producers to have greater access to animal health services. The EU also intends to help Namibia explore local and foreign markets for chilled meat and other agricultural products as well as enable communities to get involved in sustainable, market-driven livestock production. Further, business advisory services will be provided in order to encourage entrepreneurship, foster engagement in value chains and catalyze employment in the private sector. Climate resilience measures will also be embedded in these agricultural programs. The EU will also target civil society organizations for support through capacity building initiatives. These activities aim to further efforts in enabling CSOs to affect policies, demand greater accountability from state institutions and function as key development actors. Support measures will likewise be financed to complement program activities throughout this funding period, including a 1.5 million euro technical cooperation facility and a 4.5 million euro support package for the national authorizing officer. Devex analysis The EU’s current budget for Namibia represents a 35 percent drop from aid allocations under the previous EDF. This sharp decrease is attributed to the country’s ascent to upper-middle-income status, which caused several donors to gradually reduce aid to the southern African country. The 28-member bloc employs a joint implementation strategy for Namibia, working with various development partners to maximize impact. This approach enables the EU to select areas where it has significant levels of expertise while allowing its co-implementers to carry out programs in which they are better suited. Germany will be a key partner for the EU over the span of this seven-year partnership, as it is expected to be heavily involved in both focus sectors. Particularly, Germany will be instrumental in building capacity for formal vocational training. In agriculture, Germany will focus on increasing the productivity of new farmers under the resettlement and small-scale commercial farm programs, as well as combatting bush encroachment to increase outputs and heighten the utilization of biomass for electricity production. Other partners include France, Portugal and Spain, all of which will continue to contribute to culture and language programs. Meanwhile, the United Nations is also expected to play a part in interventions in the education sector through its U.N. Partnership Framework, though specific actions in this area are yet to be determined. Contact Delegation of the European Union to Namibia Tel: (264-61) 202-6000 Fax: (264-61) 202-6224 Email: