The aim of the study was to analyse the impact of Namibian reclassification as
an Upper Middle Income Country on Official Development Assistance (ODA). This study
was prompted by the negative perception that was going on in the country about the
reclassification and how it reduces ODA while on the contrary having the knowledge that
Namibia is striving to become an Industrialised country with a high income status by
2030.
In order to address the issue of the negative perception about the reclassification
as the contributor to reducing ODA, the research approach selected was a descriptive
qualitative interpretivist approach. A mix of primary and secondary data analysis was
employed to gather information on the subject matter. Interviews were conducted with
experts in the field of foreign aid to obtain views and feelings on the reclassification and
how Namibia could better manage ODA.
However the study revealed that although there were some donors who phased
out traditional assistance to Namibia, the reason is not necessarily because of the
reclassification. Hence the perception that the reclassification reduces ODA could not be
proven, since ODA flows to Namibia after the reclassification were even higher than
before.
Given that ODA will eventually reduce because of global changes in the ODA
architecture, the study recommended that Namibia start positioning herself to influence
the ODA architecture in her favour. It is also recommended that the National Planning
The impact of Namibia’s economic reclassification on ODA xiv
Commission (NPC) prepares an ODA strategy that will be aligned to the National
Planning and Budgeting system to guide policy makers and to avoid donors to drive the
development cooperation agenda in Namibia.
It was further recommended that timely communication and proper consultations
be held with donors in preparation of donor exits.