African Development Bank’s Budget Support and New Technical Assistance Grant Propel Namibia’s Domestic Revenue Mobilisation Past Expectations
WINDHOEK, NAMIBIA – The African Development Bank Group’s (AfDB) long-term support for Namibia’s tax administration reforms has delivered transformative results, culminating in a 67% increase in domestic revenue mobilization since the inception of the Namibia Revenue Agency (NamRA).
In less than five years, NamRA has collected a staggering 275.80 billion Namibia dollars, successfully exceeding expectations and boosting non-mining corporate tax revenue capacity.
Sam Shivute, Commissioner of NamRA, acknowledged the critical role played by the AfDB during a recent supervision mission: “Without the African Development Bank’s support, the agency may not have achieved this milestone… Our annual domestic revenue mobilisation has been growing consistently, exceeding expectations.”
Strategic Assistance to Cement Fiscal Sustainability
The AfDB played a pivotal role in establishing NamRA, providing various phases of budget support from 2017 to 2022. The support continues with a recent approval on December 17, 2024, of a $342,000 Middle Income Country Technical Assistance Fund Grant to finance the Namibia Tax Administration Technical Assistance Project.
The project’s objective is to further enhance revenue collection by focusing on three strategic areas:
- Specialized audits of key economic sectors.
- Capacity building for NamRA staff.
- Strengthening data analytics capabilities.
Baboucarr Koma, Chief Governance Officer at the AfDB, who led the supervision mission, noted that as official development assistance declines, the Bank is strategically supporting African nations in bolstering domestic revenue mobilization.
“By strengthening NamRA’s institutional capacity, the African Development Bank is not only closing revenue leakages but also enhancing the fiscal space and hence laying the foundation for sustainable economic development and improved quality of life for all Namibians,” Koma stated.
By reducing the fiscal deficit, the project aims to create crucial budgetary space for increased spending in economic and social sectors.
Namibia Ranks High in African Tax Performance
The success of NamRA underscores Namibia’s position as a leader in fiscal performance on the continent. According to the African Tax Administration Forum’s African Tax Outlook (ATO), Namibia’s tax-to-GDP ratio reached 26.2% in 2023, significantly surpassing the ATO average of 15.1 percent.
NamRA, established in 2021, now serves as the State’s agent for tax assessment and revenue collection, setting a clear benchmark for tax administration reform across Africa, driven by the power of strategic technical assistance.
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