The report warns that stronger systems will be essential to support growth and climate resilience.
The Public Investment Management Assessment (PIMA) and Climate PIMA, published in August 2025, evaluate how effectively the country allocates and oversees public investment, including infrastructure projects and climate-related spending. The assessment was prepared at the request of Namibia’s authorities and supported financially by the Government of Japan.
According to the report, Namibia has made progress in establishing legal and institutional frameworks for public investment. However, implementation gaps remain, particularly in project appraisal, selection and long-term maintenance planning.
The IMF noted that while Namibia has clear development priorities, these are not always fully integrated into investment planning processes. This can lead to delays, cost overruns and inefficiencies in infrastructure delivery. Weak coordination between national and regional authorities was also identified as a constraint.
The report further highlighted challenges in managing climate-related investment risks. Although Namibia has adopted policies addressing climate change, these are not consistently embedded into public investment decision-making. As a result, infrastructure projects may not adequately account for climate resilience or environmental sustainability.
The IMF recommended strengthening project appraisal systems, improving transparency in project selection, and enhancing monitoring mechanisms throughout project lifecycles. It also called for better integration of climate considerations into planning frameworks, including risk screening and long-term adaptation strategies.
Officials said improved public investment management could help Namibia maximise the impact of limited fiscal resources, particularly as the country faces rising infrastructure needs alongside tight budget conditions.
The report emphasised that stronger systems would support economic growth, improve service delivery and help Namibia attract investment. It also stressed that integrating climate resilience into infrastructure planning would reduce long-term costs and protect development gains.
The IMF concluded that continued reforms, supported by capacity building and stronger institutional coordination, will be key to ensuring Namibia’s public investment delivers sustainable and inclusive outcomes.
–IMF/ChannelAfrica–
