Characteristics of climate, geology and topography distinguish Namibia as the most arid sub-Saharan country. The basis for development of the private sector in Namibia is comprised of natural resources: land, water, mineral resources, biodiversity and the integrity of the landscape. These are vitally important to the ecological stability of the country. However, there is increasing competition for the use of land between the three most significant land users: agriculture, mining and tourism.
In addition, the country has a long history of disparity when it comes to the distribution of resources and income among the population and the different regions. Decades of colonial rule and apartheid have denied the black population access to land and other resources.
Namibia is also confronting other serious land-related problems. In particular, the current situation with regard to land law is inappropriate and is characterised by the termination of traditional land use rights in municipal areas and imbalanced access to commercial farmland, both of which pose a threat to the social and political stability of the country. Politically, it is highly important that land reform be carried out in commercial areas using various mechanisms for redistribution such as the state credit programme and the resettlement programme. At the same time, these reforms in municipal areas will have a deep impact on the private sector, since land will be managed more and more productively.
In order to ensure forest resources are used sustainably, the state has started transferring land use rights for forest areas and wildlife areas to local settlement associations. The land use model for communal conservancies in place up until now will be linked into the approach for communal forests in order to obtain as much use of these resources as possible.
International demand for the mining industry in Namibia has set off a boom as yet unknown in the country which has caused increased competition for the right to use the few water and land resources available.

In particular, water supply is vitally important in this, the driest sub-Saharan country. Even though decentralised, efficient water management has been set up over the past few years with the help of German development cooperation, sustainable water use is still a great challenge.
With a priority placed on ‘management of natural resources’, Namibian-German development cooperation aims at ensuring fairer distribution and sustainably productive use of resources for underprivileged groups on the one hand. On the other, it seeks to preserve the ecologically valuable resources and potential that Namibia has. In this way, the project yields a better environment and stabilises and improves the production base as well as incomes in rural areas.

GTZ support includes the following three components:
Land reform: Fair distribution of and access to land as well as increased income through sustainable land use
Environment: Improved conditions for sustainable management of natural resources
Water: Support from integrated water resource management, particularly in the highly populated central north region of Namibia