PAUL T. SHIPALE (with inputs by Folito Nghitongovali Diawara Gaspar)
The silent backbone of the nation
Over half of Namibia’s workforce is engaged in the informal economy. These workers wake up early, toil hard, and provide for their families, fuelling the nation’s economy, yet they largely remain invisible in official statistics, social protection schemes, and public policy. Yet, this is not a peripheral sector but the quiet backbone of the country’s survival.
Considering that more than half of Namibia’s workforce is informal and excluded from tax and social protection systems, how much potential revenue does the government lose each year due to the invisibility of these workers?
Invisibility born of necessity
This invisibility is not a choice but a necessity. Street vendors, tailors, backyard mechanics, and subsistence farmers work informally out of survival, constrained by bureaucratic complexity, high registration costs, misaligned taxes, and limited financial literacy. These barriers trap millions in cycles of vulnerability and exclusion.
The human cost of exclusion
The consequences are profound. Informal workers lack social protection, workplace safety, insurance, credit, and opportunities for growth. A single illness, accident, or economic shock can devastate a family’s livelihood. Despite generating real wealth, their contributions remain unrecognised and unprotected.
A vision of inclusion, not punishment
The government’s transformative agenda reimagines formalisation. It is not about punishment or overburdening with taxes, but about recognition, inclusion, and empowerment. The goal is to build an economy that values all forms of work, including those often overlooked in official statistics, fostering trust, dignity, and equal opportunity.
In practice, the government agenda for Namibia’s informal sector focuses on acknowledging its economic significance, enhancing support systems, and promoting formalisation through strategic policies, improved infrastructure, financial inclusion, and targeted programmes, with clear objectives outlined in national development plans and supporting policy frameworks.
A practical pathway forward
This transformation requires deliberate and supportive measures:
• Simplification of administrative procedures
• Progressive tax regimes for small enterprises
• Access to microcredit and technical training
• Gradual integration into social protection systems
Civil society workers’ associations, cooperatives, NGOs, and community leaders serve as the essential bridge, ensuring that formalisation is collaborative, culturally rooted, and built on trust.
Strengthening state and society together
The benefits extend far beyond the individual. A formalised informal sector strengthens the tax base, enhances economic data, reduces inequality, and creates a predictable environment for investment. Society gains cohesion; the state gains legitimacy and planning capacity; and the economy gains resilience.
Changing the narrative from problem to potential
Informality is not a problem to be eradicated but a potential to be developed. Millions of Namibians have demonstrated remarkable creativity, resilience, and entrepreneurial spirit. They require opportunity, recognition, and support, not charity. Valuing invisible work is not merely a policy choice; it is a political responsibility and a national imperative.
Toward a future where no one works in silence
Turning informality from a trap into a springboard represents a decisive step toward a more humane, just, and sustainable future. A truly strong economy is measured not only in statistics but also by its ability to leave no citizen behind, especially those who have long laboured in silence.
Against this background, we are glad the revised minimum wage rates for domestic workers, agricultural workers and security guards came into effect on 1 January 2026 as part of a three-year phase-in of the National Minimum Wage.
The Ministry of Justice and Labour Relations said the updated rates mark a key step in strengthening labour protection and improving compliance across vulnerable sectors.
Indeed, this is the phased implementation, following the adoption of the national wage floor of N$18 per hour, starting with the implementation of the first increases for domestic and agricultural workers as well as security guards. These categories will phase in over three years with the following rates from 1 January 2026: domestic workers N$15 per hour, agricultural workers N$14 per hour and security guards N$16 per hour.
The national wage floor of N$18 per hour was introduced in 2024 and announced through a Government Gazette notice after nationwide consultations led by the Wages Commission.
The clear choice
The path forward is evident: recognise, integrate, and protect all workers. Through this agenda, Namibia’s invisible workforce will become the visible, driving force of a new, inclusive economy where every contributor is seen, supported, and empowered to help the nation thrive.
Disclaimer: The opinions expressed here do not necessarily reflect those of our employers and this newspaper but solely our personal views as citizens and pan-Africanists.
