Chamwe Kaira
Namibia’s informal economy contributes about US$13 billion (approximately N$240.5 billion) in purchasing power parity (PPP) terms and remains one of the largest drivers of employment and income in the country.
According to the national informal economy, startups and entrepreneurship development policy (NIESEP), the informal economy contributed an estimated 24.7% of gross domestic product (GDP) in 2023, roughly US$8 billion (N$148 billion) in purchasing power parity (PPP) terms.
By 2025, this share has grown to 26.5%, equal to about US$13 billion.
The informal economy also employs about 58% of the country’s workforce, making it a central part of the national economy.
“This is not a side economy,” said Michael Humavindu, chairperson of the national working group on informality and executive director in the Ministry of Finance.
“It is the engine room of our national life, where women make up the majority of entrepreneurs, where youth build their first businesses and where resilience thrives in the absence of safety nets.”
Humavindu spoke at the launch of the diagnostic report on informality in Namibia in Windhoek on Tuesday.
He described the event as the end of a meaningful journey that changed how Namibia views an important part of its economy.
“For too long, the conversation about the informal economy has been one of silence and oversight. We have allowed a narrative to persist that treats this sector as a shadow economy, yet the data tells a very different story,” he said.
The report is the result of a countrywide process led by the national working group on informality.
The group engaged directly with informal workers across Namibia, from street vendors and taxi drivers to backyard mechanics and food sellers, rather than relying only on desk research.
“This process deepened my appreciation for the entrepreneurial spirit of the Namibian people. It aligned our policy with a determination to recognise, protect, and unlock the real economy that lives beyond glass buildings and corporate regulations,” Humavindu said.
The report acts as both a diagnosis and a roadmap for reform. It focuses on areas such as access to finance, easier business registration, fair access to land, digital inclusion, and supportive legislation.
“The informal economy does not need our sympathy. It needs policy, legislation, reform, investment and above all, respect. Let us not build two economies, one seen and one merely survived. The people who feed us, move us, clothe us, and build for us must never again stand outside the gate of economic protection and policy recognition.”
Caption
The informal sector employs over half of the Namibian population.
Photo: Contributed
