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Namibia Compact

In July 2008, the Millennium Challenge Corporation signed a five-year, $304.5 million compact with the Government of Namibia to reduce poverty and accelerate economic growth. The compact sought to improve the quality of education and training for underserved populations, and attempted to capitalize on Namibia’s comparative advantages (e.g., large areas of semi-arid communal land suitable for livestock, and diverse wildlife and unique landscapes ideal for ecotourism) to increase the incomes of poor Namibians in the northern areas of the country.

  • Original Amount at Compact Signing:
    $304477816
  • Amount spent:
    $295719173
  • Signed:
    July 28, 2008
  • Entry Into Force:
    September 16, 2009
  • Closed:
    September 16, 2014

Project Results

Agriculture Project

  • $46,965,320
    Original Compact Project Amount
  • $50,660,856
    Total Disbursed

Estimated Benefits

Estimated Benefits for the Agriculture Project
Time Estimated Economic Rate of Return (ERR) over 20 years Estimated beneficiaries over 20 years Estimated net benefits over 20 years
Not specified 750,220 $31,800,000

Project Description

This project will target investments to improve the economic performance of the livestock sector in the northern area of the country. The project aims to increase the productivity and profitability of livestock by strengthening the land tenure system, introducing improved rangeland and livestock management practices, and improving animal health services and livestock marketing efficiencies. This project will also support the growth of the indigenous natural products (INPs) sector. The Agriculture Project is comprised of the following activities: 

  • Improve the communal land regime and introduce effective community-based rangeland and livestock management activities;
  • Support the construction of five veterinary centers in the underserved Northern Communal Areas and rehabilitation of two quarantine camps in the Caprivi region; and
  • Provide a livestock traceability system to improve herd management and market-entry requirements; and a market efficiency fund to alleviate challenges that are present in the current supply chain; and
  • Assist in increasing the volume, quality, and value addition of the indigenous natural products that Primary Producer Organizations (PPOs) collect and harvest, and to advance PPOs operational and business capacity.

Education Project

  • $144,976,558
    Original Compact Project Amount
  • $138,573,744
    Total Disbursed

Estimated Benefits

Estimated Benefits for the Education Project
Time Estimated Economic Rate of Return (ERR) over 20 years Estimated beneficiaries over 20 years Estimated net benefits over 20 years
Not specified 1,063,410 $165,000,000

Project Description

The Education Project sought to improve the education sector’s effectiveness, efficiency and quality through infrastructure improvements, institutional strengthening, policy reform and targeted technical assistance to ensure sustainable results. This project was comprised of the following activities:

  • Improved access to and management of textbooks;
  • Constructed Regional Study and Resource Centers in underserved areas in an effort to improve access to documentation, information resources, training materials and programs, and study facilities;
  • Expanded access to tertiary education through assisting the Ministry of Education in its efforts to establish a sustainable and more widely accessible tertiary and technical education finance system;
  • Strengthen to the Ministry of Education’s HIV/AIDS Management Unit and develop HIV/AIDS awareness and prevention plans related to construction activities;
  • Bolstered the quality of general education through the improvement of infrastructure and equipment in approximately 47 primary and secondary school campuses; and
  • Improved vocational and skills training through the establishment of a National Train­ing Fund within the Namibia Training Authority.

Tourism Project

  • $66,959,291
    Original Compact Project Amount
  • $66,265,621
    Total Disbursed

Estimated Benefits

Estimated Benefits for the Tourism Project
Time Estimated Economic Rate of Return (ERR) over 20 years Estimated beneficiaries over 20 years Estimated net benefits over 20 years
Not specified 168,661 $43,700,000

Project Description

This project aimed to improve the management and infrastructure of Etosha National Park, enhance the marketing of Namibian tourism, and develop the capacity of communal con­servancies to attract investments in ecotourism and capture a greater share of the revenue generated by tourism. Together, these activities increased incomes and created employment opportunities for some of the poorest populations in Namibia, while conserving the natural resources that serve as the basis for the tourism industry. This project was comprised of the following activities:

  • Improved the management capacity of Etosha National Park (ENP), promoted private sector investment in tourism enterprises around the park, increased tourism revenue nationally;
  • Increased tourist arrivals to Namibia by expanding marketing of Namibia as a tourist destination, developed and marketed local and regional tourism route packages, and developed a fully interactive website for the Namibia Tourism Board.
  • Assisted Namibia in building conservancy capacity to protect natural resources, attract investment, and achieve financial sustainability so that households in communal conservancy areas (or conservancies) received a greater share of revenues.