The African Development Bank Group’s support to Namibia’s tax administration reforms through successive budget support operations has delivered significant results. In less than five years, the Namibia Revenue Agency (NamRA) has collected 275.80 billion Namibia dollars, representing a 67 percent increase in domestic revenue mobilisation since inception.
The establishment of NamRA has transformed Namibia’s capacity to collect revenue, particularly in non-mining corporate tax revenue.
“Without the African Development Bank’s support, the agency may not have achieved this milestone,” said Sam Shivute, Commissioner of the Namibia Revenue Agency, during an African Development Bank supervision mission on Tuesday. “The agency aspires to be a world-class organisation, and our annual domestic revenue mobilisation has been growing consistently, exceeding expectations.”
The African Development Bank played a pivotal role in establishing NamRA through various phases of budget support from 2017 to 2022. The Bank has continued providing technical assistance as part of a broader program to improve Namibia’s public finance management and economic governance.
On 17 December 2024, the Bank approved a $342,000 Middle Income Country Technical Assistance Fund Grant to finance the Namibia Tax Administration Technical Assistance Project.
Strategic Focus Areas
The project’s development objective is to further boost domestic revenue mobilisation through specialised audits of key economic sectors, capacity building for NamRA staff, and strengthening data analytics capabilities.
These initiatives will enhance revenue collection, close leakage sources, and improve fiscal sustainability. By reducing the fiscal deficit — a key driver of public debt — the project creates budgetary space for increased spending in economic and social sectors, ultimately contributing to Namibia’s socioeconomic development objectives.
“As official development assistance declines, the Bank has been supporting African countries in strengthening domestic revenue mobilisation as part of the broader economic governance agenda,” said Baboucarr Koma, Chief Governance Officer at the African Development Bank, who led the supervision mission.
“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.”
Namibia has consistently ranked among the highest-tax-to-GDP-ratio countries 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 above the ATO average of 15.1 percent.
Officials from the Ministry of Finance and Public Enterprises emphasised that strengthening NamRA’s capacity would enhance revenue mobilisation, enabling the government to invest more in its people, infrastructure, and future prosperity while maintaining fiscal discipline.
Established in 2021 under the Namibia Revenue Agency Act (No. 12 of 2017), NamRA serves as the State’s agent for tax assessment and revenue collection.
Koma said: “As Namibia continues its journey toward inclusive growth and sustainable development, this partnership with the African Development Bank demonstrates the power of strategic technical assistance to drive transformative change and sets a benchmark for tax administration reform across Africa.”