Imelda Ambondo
United Nations’ Resident Coordinator Hopolang Phororo said Namibian women dominate the country’s informal workforce.
“Nearly six in ten workers operate outside the formal system, women make up 53% of the informal workforce, while youth often find their first entrepreneurial opportunities in the sector,” Phororo said at the launch of a report titled Diagnostic of Informality in Namibia.
The report was launched on 11 November at the Bank of Namibia’s offices in Windhoek.
The report revealed that 57.7% of Namibia’s employed population works in the informal market.
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.
Some of the key findings of the report are that 31.6% of the employed population in Namibia are in vulnerable employment.
The majority of these (65.1%) live in rural areas..
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.
Speaking at the event Phororo reaffirmed the United Nations’ commitment to supporting Namibia’s informal economy, describing it as the “heartbeat” of the nation’s development.
Phororo said the newly unveiled diagnostic report highlights that informality “is not a marginal phenomenon in Namibia, it is central to our economic and social fabric.”
She commended the Bank of Namibia, the Ministry of International Relations and Trade, and the National Working Group on Informality for their leadership, noting that “today, we affirm a collective vision, a Namibia where every worker is visible, valued and protected.”
She added that the work aligns with global efforts such as the UN Global Accelerator on Jobs and Social Protection for Just Transitions, recognising Namibia as a “pathfinding country.”
Executive Director in the Ministry of Finance, Michael Humavindu described the report as “the culmination of a profound journey” that has reshaped how policymakers view the informal sector.
“For too long, the conversation about the informal economy has been one of silence. This sector is not a side economy; it is a pillar of our national life,” he said.
He revealed that the informal economy contributes about 26.5% of Namibia’s GDP in 2025, representing roughly US$13 billion, underscoring its vital role in livelihoods and national growth.
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 %) compared to urban areas (41.8 %),” the report said.
“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 minimal. While only one-fifth of all employees in Namibia are unionised, just 7% 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% 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.
COMMENTS