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USAID Information:
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Namibia
The Development Challenge: Just 13 years after independence from apartheid South Africa, Namibia has emerged as a stable, market-driven, parliamentary democracy. It consistently ranks high on international indices of economic competitiveness, democratic freedom, and good governance. Namibia is also one of the developing world's leaders in public sector investment in education, health and other social sectors. The country is amply blessed with natural resources such as extensive gemstone and mineral deposits, rich offshore stocks of high value fish, and breathtaking scenery and an abundance of wildlife fostering a growing reputation as an attractive tourist destination. Namibia's man-made endowments such as its modern port, network of well-paved highways and its fiber optic communications infrastructure (among the most sophisticated on the continent) are equally impressive, making the country one of the prime gateways into Southern African markets.
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Namibia, however, faces continuing challenges related to its long legacy of colonialism and apartheid. An estimated 55% of national income accrues to only 10% of the population. Thus, while Namibia is considered a lower middle income country, almost 35% of Namibians live on less than $1 per day. Unemployment is estimated at 35%, and 25% of the population is underemployed. Inadequate levels of employment generation are a symptom of economic stagnation, as seen by an annual per capita GDP growth rate that has averaged 1.6% since independence. Until Namibia is able to provide the disadvantaged majority of its citizens with the skills required of a modern workforce, and until it can fully shed the colonial economic model where resources are extracted and exported with little value added, slow economic growth will continue.
Namibia's second challenge is to deepen its nascent democracy. In the 13 years since independence, Namibia has made great progress in realizing its democratic ideals. Multiple free elections have been held; citizens enjoy wide-ranging freedoms, including access to a free press; and relative to other developing countries around the world, the government has performed well in terms of delivering services, respecting human rights, promoting governmental integrity, and abiding by the decisions of the independent judiciary. Nevertheless, the checks and balances that are required for solid democracies are still weak, and the culture of democracy is still taking root. The only president Namibia has ever known has announced his intention to step aside in the late 2004 national elections, and many others from the "liberation generation" also are preparing to move aside. Namibia is about to undergo a watershed period that will test but likely strengthen the country's democracy.
Compounding these challenges, the greatest threat to Namibia's development is the rapid spread of HIV/AIDS. Over 22% of sexually active adults are infected with HIV/AIDS, and the rate of disease transmission is still increasing. AIDS already accounts for 50% of the deaths among individuals aged 15-19, and for 75% of all hospitalizations in public facilities. A 2002 report developed by the Ministry of Health and Social Services estimated that in 2003 Namibia will have 114,000 orphans and vulnerable children, of whom over two thirds are attributable to the epidemic. Namibia is one of the most affected countries in the world and, with its small population, it has a limited capacity to absorb the coming losses. Since Namibia is a focus country in the President's Emergency Plan for AIDS Relief (PEPFAR), the U.S. government plans a major expansion of HIV/AIDS programs, with special attention to care and treatment. Namibia will further benefit from its status as a successful applicant to the Global Fund to Fight AIDS, Tuberculosis and Malaria.
Namibia is a focus country under the President's Emergency Plan for AIDS Relief (PEPFAR). All proposed HIV/AIDS activities are being integrated into PEPFAR and are subject to the approval of the U.S. Global AIDS Coordinator. Additional funding from the Global HIV/AIDS Initiative account is anticipated for both FY 2004 and FY 2005.
The U.S. national interests in Namibia are based on the desire to deepen Namibia's status as an African success story, to enhance its ability to contribute to peace, security, and stability on the African continent, and to maintain its ongoing support in the war against terror.
The USAID Program: USAID supports five objectives that will accelerate progress toward the economic, social and political empowerment of historically disadvantaged Namibians. These programs promote private enterprise development, improve basic education in grades one through seven, increase the environmental and economic benefits of community-based natural resource management, strengthen democracy and governance, and curb the spread and impact of HIV/AIDS.
Other Program Elements: In addition to the resources requested here, funding was provided by other USAID offices in FY 2003. USAID's Africa Bureau and the Bureau for Democracy, Conflict and Humanitarian Assistance provided $475,500 to help address resettlement issues related to Namibia's land reform efforts. The Namibia program also benefited from $600,000 in first-year funding under the President's Africa Education Initiative, to broaden in-service training under USAID's basic education program. During this period, USAID's regional Southern Africa program contributed $880,000 to disseminate lessons-learned from USAID's community-based natural resource management program to similar programs in Southern Africa and to continue transboundary natural resource management efforts.
Namibia is a target country under the PEPFAR initiative and, in FY 2003, received $5.45 million in initial funding under the Initiative to Prevent Mother-To-Child Transmission of HIV/AIDS. USAID's HIV/AIDS budget has been supplemented by USAID's Regional Urban Development Office, which has supported the efforts of local government authorities to reduce HIV/AIDS impact at the community level through activities such as improved access to home-based care and to voluntary counseling and testing. USAID's Economic Growth, Agriculture and Trade Bureau (EGAT) continues to finance an International Foundation for Education and Self-Help program, where American volunteers are training local teachers and teaching business skills. In FY 2003, EGAT funded a computer-assisted teacher training program in support of USAID's basic education program.
Other Donors: USAID's program is the second largest among bilateral donors, after Germany. USAID works actively with other donors in every area of engagement to ensure complementarity. United Nations agencies have begun to play an important role in catalyzing a coordinated response to the HIV/AIDS epidemic, supported by Germany, Finland, Sweden, the Netherlands, and France. In 2003, an HIV/AIDS Global Fund activity was approved for Namibia, which will be supported by the United States and several other donors. The European Union (EU), Germany, Sweden, Finland, Norway, United Kingdom (UK), Spain, and several United Nations agencies are engaged in a sector-wide assistance program in the education sector. The World Bank's Global Environment Facility is planning a capacity building program for the Ministry of Environment and Tourism in support of community-based natural resources management, an area also supported by Sweden and the UK, while the EU is designing a major rural development program. The Netherlands parallel finances a civil society support program with USAID and, along with Sweden, partners with USAID in an electoral support activity. Sweden also supports an integrity program with Namibia's Office of the Ombudsman, parallel to USAID's activity in this area. The UK, Germany, Netherlands, Austria, Italy, Luxembourg, the United Nations Development Program and the United Nations International Labor Organization are engaged in small and medium enterprise development programs, while the EU and Germany support trade and investment development.
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