Petronella Sibeene
29 July 2008
Windhoek — Namibia awaits the release of millions of dollars from the United States following the signing of an agreement between the two countries, paving the way for the provision of funds towards poverty eradication projects.
The Millennium Challenge Corporation's board of directors approved a five-year US$304.5 million (N$2.3 billion) Millennium Challenge Account (MCA) compact with Namibia, making the country the 18th recipient in the world.
Director General of the National Planning Commission, Professor Peter Katjavivi, and Deputy Chief Executive Officer of the Millennium Challenge Corporation (MCC), Rodney Bent, signed the MCA compact yesterday afternoon.
Two years after the country became eligible for MCC funding, the compact seeks to improve key sectors, namely education, agriculture and tourism.
Namibia will have to spend the funds during the five-year period and according to Katjavivi, absorption capacity (of the funds vis-à-vis) the time frame remains a challenge.
All funds not spent by the end of the stipulated five years will remain with the MCC, Katjavivi confirmed. Implementation of projects would start soon, he said.
He told New Era on the sidelines of the signing ceremony that a team that will facilitate speedy implementation of the projects has already been identified.
Further, the MCA is going to establish offices in Namibia to ensure the two parties work together for a good cause.
"Our responsibility is to make sure we use the money. We have no choice but to move rapidly and be conscious of the five-year period," he said.
Katjavivi was positive about the US gesture, saying the compact will unlock a substantial investment by the US government into programmes and projects in Namibia that will contribute to poverty reduction through sustainable economic growth.
Consultation exercise with a broad section of government, civil society and the population at large, has already been carried out with a plan to identify programmes and projects to be ventured in.
"MCA Namibia with other stakeholders identified growth sectors or sub-sectors in the Namibian economy that would have a strong potential to contribute to poverty reduction," Katjavivi said.
Projects identified are those in areas of education, livestock development and marketing, indigenous natural products and tourism.
These projects, according to Katjavivi, are relevant to achieving the long-term development objectives of Vision 2030 and the Millennium Development Goals.
"In the implementation of the MCA Namibia programme, the MCA Namibia management unit will work closely with the target line ministries," he said.
Meanwhile, the challenge that the country faces to remain eligible to such funds would be to improve on policy areas that Namibia did not score to full satisfaction.
These, Katjavivi told New Era, are education of the girl child and the fiscal area, although he did not elaborate.
Education Project
Under education, US$145.0 million has been allocated for projects that seek to improve the education sector's effectiveness, efficiency and quality. Thus areas of concentration include general education, vocational and skills training, access to and management of textbooks, regional study and resource centres, expanding and improving access to tertiary education finance, and cross-project support.
Over a million students across the country are expected to benefit from improved provision of textbooks and generally, an improved quality of education.
About 47 schools are targeted for renovations and expansion, with 417000 graduates anticipated from primary rural Namibia.
An additional 11000 students will receive financing for tertiary education, while 49000 under-educated and unemployed individuals over 20 years of age will receive training at community skills development centres.
An estimated 2000 vocational training graduates are expected to receive higher incomes due to improved training opportunities through the National Training Fund.
Tourism Project
The tourism project will support three priority activities to improve the management and infrastructure of Etosha National Park, enhance the marketing of Namibia and tourism, and develop the capacity of communal conservancies to attract investments in eco-tourism, thereby capturing a greater share of revenue.
According to the NPC, the marketing activities in the sector will increase the number of tourists to the country to 4000 per annum.
In 31 conservancies that exist, approximately 118000 members are targeted for support under this project.
About 111000 conservancy members are expected to enjoy indirect benefits, while 7000 will enjoy full-time or part-time employment opportunities.
Agriculture
The agriculture project will target investments to improve the economic performance of the livestock sector in northern Namibia.
The project is expected to increase productivity and profitability of livestock through strengthening the land tenure system. Other areas to be strengthened include improved rangeland management practices, animal health services and livestock marketing efficiencies.
About 135000 individuals are likely to benefit from such initiatives.
"Over 24000 households will benefit from improved veterinary services and 1800 households across 50 communities are anticipated to benefit from the rangeland management programme," NPC said.
The indigenous natural products such as marula, Kalahari melon seed, hoodia, devil's claw and ximenia are going to increase the income of about 15000 households.
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