The Minister of Finance and Public Enterprises, Iipumbu Shiimi, says the government has taken steps to boost the development budget significantly to enhance infrastructure and stimulate growth in the country. 

He, however, pointed out that there are acknowledged challenges in execution and procurement that need attention for more effective utilisation of the allocated funds.

The development budget remains the same as the N$6.5 billion allocated last year, at a low execution rate of 32.6% at mid-year and a reallocation of N$167.3 million, with N$129.7 million specifically for expediting classroom construction in 2023. 

In contrast, this year, a substantial 58.1% increase in the development budget has been effected to the tune of N$12.7 billion for the fiscal year 2024-2025.

"To close the infrastructure gaps that continue to weigh against our growth potential, the development budget has been increased significantly by 58.1% to N$12.7 billion. This is inclusive of N$3.2 billion in grant-funded and loan-funded projects to improve infrastructure through various ministries. The development budget is equivalent to 4.6% of GDP, a significant improvement from prior years. Nevertheless, we remain concerned about limited project execution capacity at most offices, ministries, and agencies (O/M/As) and procurement bottlenecks, which continually translate into virementation of funds from and/or underspending on the development budget. Accordingly, the government will continue to work on addressing these shortcomings."

Ultimately, the National Budget contains proposals for macroeconomic policies, with a specific emphasis on supporting economic growth through the acceleration of infrastructure development on the national railway line.

"We have made provisions to the tune of N$2.5 billion in FY2024/25 towards railway infrastructure, consisting mainly of N$1.9 billion for the upgrading of the Kranzberg-Otjiwarongo railway section and N$488 million for the rehabilitation of the Sandverhaar-Buchholzbrunn railway section in the south. In this context, critical sections of the national railway line are in a state of disrepair and will thus enjoy attention from a funding perspective over the MTEF. In this regard, a total of N$6.6 billion is earmarked for the railway network development over the MTEF. These allocations are further complimented by operational funding, a dedicated loan facility to purchase rolling stock, and ongoing efforts to improve governance at TransNamib." 

N$970 million has been allocated for the construction and renovation of classrooms and other school infrastructure. 

A further N$700 million is set aside for the upgrading of informal settlements, massive land servicing, and other programmes to improve access to housing opportunities nationwide.