Namibia: EU Dumps Aid for Mutual Cooperation
The European Union (EU) has dumped its initial aid-based relationship with Namibia for a more cooperative and partnership-based approach.
EU ambassador to Namibia Sinikka Antila told Desert Radio 95.3 FM yesterday there is a need for Namibia and the EU to make a paradigm shift towards diversifying their relationship – more so now that Namibia is viewed as an upper middle-income country.
The EU, Antila said, pumped over a billion dollars into the local economy in their recently concluded 11th developmental plan.
She said the level of development aid given to Namibia has dwindled because the bloc is pushing for an all-encompassing mutually beneficial engagement.
“Namibia being an upper middle-income country means the flow of grant aid is decreasing and has decreased, but I am happy that we have managed to have the portfolio. Many countries have stopped giving Namibia aid, because many other poor countries need it,” Antila said.
She said the focus is now on getting more European development-financing institutions to provide loan-based finances.
“This is what is needed to grow the economy. We are discussing with the European Investment Bank. They have invested in Namibia before, and they are willing to come again. The German financier KFW, and the French AFD are already here,” she said.
Antila recommended that the blending method could be used, which involves that some grant money is combined with loans from European financial institutions for important development projects.
“We have to work together to make it work,” she said.
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The EU earlier made N$8,4 million available to Namibia to combat the Covid-19 pandemic.
“We are there all the time, with Namibia, regionally and globally,” she said.
EU-NAMIBIA COOPERATION
Meanwhile the 11th European Development Fund, which is still being implemented, has pumped in about €68 million (roughly N$1,1 billion) in the past six years.
Antila said there are also regional programmes, such as the EU-Southern African Development Community programmes, and the Economic Partnership Agreement implementation to reform the business environment and development value chains of small and medium businesses.
The EU also has thematic programmes in support of human rights and against gender-based violence on top of the six-year programme.
TRADE
The ambassador said trade between Namibia and the EU has always been strong, with Namibian beef having been exported to Europe for a long period.
“We are an important partner, and we want to promote more of these kinds of business and investment partnerships,” she said.
Antila said there are other projects the EU can invest in in Namibia as the country has ambitious plans in renewable energy, such as the green hydrogen plan that has attracted a lot of attention globally.
Antila said the project has also attracted many European partners.
The EU and Namibia have been in a partnership since Namibia’s independence, working on economic affairs, sustainable development, and political affairs.
She said Namibia and the EU will look at a multilateral type of partnership in the future.
By Namibian.
