The Ministry of Finance and Public Enterprises has allocated an additional N$698.8 million for drought relief provisions under the Office of the Prime Minister, primarily to extend the food distribution program to eligible communities.

In his mid-year budget review, Finance Minister Iipumbu Shiimi announced that this allocation raises the total drought relief budget for the Financial Year 2024/25 to over N$1.4 billion.

The National Disaster Management Unit within the Office of the Prime Minister is actively implementing its drought relief program in affected regions and communities at a cost of N$129.8 million per month, which necessitated the additional N$698 million secured for the initiative.

"This allocation allows for the expansion of the drought relief program to cover 308,750 households until June 30, 2025. The total drought relief budget for FY2024/25 now exceeds N$1.4 billion. This significant funding underscores the need for climate resilience policies and measures to mitigate the impact of weather events on livelihoods moving forward."

Additionally, Minister Shiimi noted that the Ministry of Agriculture, Water, and Land Reform has prioritized drilling more boreholes and expanding rural water supply pipelines this financial year to improve water access for communities, particularly in light of the increasing frequency of droughts.

To date, the ministry has completed 115 boreholes and 20 earth dams in rural communities, with plans for another 83 boreholes and 34 earth dams in progress.

"The Environmental Investment Fund of Namibia (EIF) has successfully drilled over 70 boreholes this year, valued at N$40 million, funded by both public and donor resources. This effort benefits approximately 35,000 people and over 30,000 livestock. Looking ahead, the Fund has a solid pipeline of projects related to water drilling, retrofitting, and the desalination of brackish water, with an estimated value of N$120 million."

Through Agribank, the Finance Ministry has implemented a dedicated subsidy program at a cost of N$12.3 million to support farmers adversely affected by drought conditions during the current financial year.

These funds will enable Agribank to provide installment relief to clients with livestock and farmland purchase loans, allowing farmers to redirect their loan installment funds back into their farming operations.

Minister Shiimi also mentioned that his ministry plans to inject an additional N$100 million into expanding green entrepreneurship in Namibia through the Environmental Investment Fund's Green Credit Facility.

"The EIF is projecting a pipeline of projects valued at N$738 million for the upcoming financial year, primarily sourced from multilateral funding windows. These projects will focus on adaptation initiatives, such as enhancing resilience in Namibia's peri-urban communities through sustainable agriculture and strengthening the adaptation capacity of artisanal fisheries."

The Green Climate Fund (GCF) is a concessional fund designed to support green SMEs and youth-led enterprises.

So far, the facility has disbursed over N$70 million to 118 SMEs.