26.05.2011 - N$ 1.2 billion German Development Assistance to Namibia in 2011/12

Germany will provide a total of € 127 million (i. e. roughly N$ 1.2 billion) of Official Development Assistance (ODA) to Namibia over the two-year period 2011/12. An approximate 40% of that total will consist of concessional loans (mainly for the Lower Orange River Hydro Power Plant Project). The remaining 60% will be grants for financial or technical co-operation.

Whilst the lion's share of those financial means is being invested in three focal areas of bilateral co-operation (Natural Resources, Transport, Sustainable Economic Development), new emphasis has been placed on education, with a total of € 15 million earmarked for new projects and components both at the UNAM Engineering Faculty and the Polytechnic of Namibia.

That is the result of the biennial German-Namibian Government consultations on Development Co-operation held on 23 and 24 May 2011 in Bonn and Berlin. At the close of these consultations Federal Minister for Economic Co-operation and Development, Mr. Dirk Niebel, met with the Director-General of the Namibian Planning Commission, Mr Tom Alweendo, in Berlin.

Prior to the meeting Niebel said, “Germany remains committed to its historical responsibility towards Namibia and will continue the close economic partnership with Namibia. Economic development is a prerequisite for sustainable development, and in order to achieve this, improvement of the standard of education is indispensable. This is why we extend our co-operation in these two sectors.” In the face of the extensive lack of skilled labour and the unemployment rate of over 50% in Namibia the co-operation will in future also include vocational training as well as support for Namibian universities.

The Federal Ministry for Economic Co-operation and Development has furthermore pledged support for the management of natural resources as well as for the enhancement of the transport network, especially supporting the poorest. Minister Niebel said, “The protection of the ecological resources of Namibia as a foundation for economic development via tourism, mining and agriculture is the focal point of our co-operation. The aim is to make it possible for the people of Namibia to utilise these resources in a productive and sustainable manner.” Since Namibia is among the countries with the highest HIV/AIDS prevalence in the world, the Federal Government has pledged further support for the prevention of HIV/AIDS in Namibia.

In the face of Germany's historically founded responsibility, the German Parliament (Bundestag) had requested the Federal Government back in 1989 to shape a special partnership with Namibia. Development Co-operation has become one of the pillars of the resulting close bilateral relationship. Its main aim is to support the Namibian Government in employment creation and income regeneration, thus the fight against poverty.