IMELDA AMBONDO
About 57.7% of Namibia’s employed population works in the informal market.
This is according to findings of the Diagnostic of Informality In Namibia Report which was launched on Tuesday. The report is a result of a partnership between the Bank of Namibia, in partnership with the Ministry of Industries, Mines and Energy, the Ministry of Justice and Labour Relations, as well as the United Nations.
It highlights deep inequalities between rural and urban livelihoods, with informal work far more common in the countryside.
“The share of workers in informal employment is close to two times higher in rural areas (78.9 percent) compared to urban areas (41.8 percent),” the report said.
The survey further shows that 31.6 percent of the employed population are in vulnerable employment, the majority of whom (65.1 percent) live in rural areas. These figures reveal a strong link between informality, poverty, and geography in Namibia, the report says.
At the sectoral level, informal work is concentrated in agriculture, forestry, and fishing, which collectively employ more than 146,000 people, as well as among subsistence and communal farmers (94,001) and unpaid family workers (17,040). These are predominantly rural occupations. By contrast, domestic workers (65,674) and those in wholesale, retail, and food services form the bulk of urban informal workers.
“Informality in Namibia is characterised by a significant portion of the population working in informal employment and engaging in informal economic activities, particularly adult women and youth with secondary education and less,” the report noted
According to the report urban informality is most visible at transport nodes and open markets, where traders sell fresh produce, cooked food, clothing, and hairdressing services. It said attempts by local authorities to formalise these areas through regulated trading bays and open markets remain contentious.
“The location and formalisation of open markets and permitted trading areas are a highly contested issue where traders feel that they are not consulted,” the report said adding that “With participatory planning and governance, these spatial interventions can facilitate a transition to the formal economy and promote decent working conditions.”
The report also noted that working conditions in the informal sector remain poor, with limited social protection.
“Most of these workers find themselves in poor working conditions… including long working hours without requisite compensation, poor hygiene, and unsafe places of work,” the report highlighted.
It also said union representation in the informal economy is also minimal. While only one-fifth of all employees in Namibia are unionised, just 7 percent of informal workers belong to associations such as the Bus and Taxi Associations, leaving the majority vulnerable to exploitation.
Despite economic growth of 4.2 percent in 2023, driven by mining and oil exploration, the report warned that Namibia’s job market remains fragile.
It said the informal economy contributes 24.7% to GDP, yet most workers in this sector have little job security or benefits.
“Further research at a sectoral level is required to examine opportunities to implement spatially targeted interventions to reduce decent work deficits and prevent the informalisation of formal economy jobs,” the report recommends.
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