Integrating small African economies into global value chains through foreign aid: The case of Namibia

The aim of this chapter is to examine the broad framework which has been evolved for the reception of Aid for Trade (AFT) in Namibia. The economic situation before this period included the prevalence of poverty, the HIV/AIDS pandemic, low educational opportunities and a very highly skewed or unequal distribution of the wealth of the country, which has increased income inequalities and unsustainable economic growth, as outlined in Namibia Vision 2030 (Namibia, Office of the President, 2004). In this regard, Namibia shares this economic dependency at the regional level, and most trade and economic relationships are mainly with Botswana, Lesotho, Swaziland and South Africa, all of which are members of the Southern African Customs Union (SACU) and Southern African Development Community (SADC). The objective is to create a free trade area in the Southern Africa region.