Taxation needs representation, especially for SMEs
As the new year begins, intense energy fills the halls of the Ministry of Finance and Public Enterprises. Namibia has entered “budget season”, the critical period during which the Minister of Finance, Ericah Shafudah, and her team draft the national budget for the 2026/27 financial year. While the spreadsheets contain billions of dollars, the true success of this budget will be measured by how effectively it reflects the voices of the people who power the economy.The phrase “no taxation without representation” is often linked to historic revolutions, but in Namibia it carries a practical economic meaning. Those who contribute to the national fiscus deserve a seat at the table when the rules of contribution are set. As the country looks to “turn the corner” and accelerate growth, it is time to ensure that Small and Medium Enterprises (SMEs) are not only taxed, but truly heard.
SMEs remain the primary engine of the Namibian economy. With an estimated 40,000 operating nationwide from Katutura’s bustling stalls to northern guesthouses and farms across the country Namibia is undeniably an enterprising nation. These businesses account for nearly one-third of all jobs, a fact that should inspire pride and deliberate support.
When an SME succeeds, the benefits ripple outward. A local construction firm hires more youth, reducing unemployment. A boutique in Oshakati sources additional local fabrics. A small lodge in the Kunene region invests in solar energy. This multiplier effect is what transforms a budget from a document of expenditure into a blueprint for shared prosperity.
For years, however, the main obstacle facing SMEs has been a tax system designed with large multinational corporations in mind rather than small operators. While the non-mining corporate tax rate is on a welcome downward path towards 28%, the administrative burden remains heavy. For a business with five employees, compliance costs can rival the tax itself. The concern from SMEs is not an unwillingness to contribute, but the capacity to do so while still growing. High rates and complex filing systems drain capital needed to hire staff, invest in technology, innovate, and expand into regional markets.
The upcoming budget presents a golden opportunity to address these concerns. Encouraging discussions around a preferential 20% corporate tax rate for qualifying SMEs signal progress. Codifying this measure in the 2026 budget would send a powerful message that government has listened.
True representation in taxation goes beyond reduced rates; it is about partnership. When SME voices are reflected in the budget, government gains a stronger and more resilient tax base. Cutting red tape and introducing targeted incentives for skills development and digital transformation would turn the tax system into a development tool rather than a purely collection mechanism.
With green hydrogen, oil and gas prospects on the horizon, Namibia stands at the threshold of a new era. For this wealth to be inclusive and sustainable, the middle of the economy must be strong and properly represented.
If the 2026/27 budget balances national revenue needs with relief for small businesses, Namibia will not merely turn a corner it will build a new road to prosperity. A budget that reflects SMEs is a budget for every Namibian, proving that when entrepreneurs are given a seat at the table, everyone shares in the rewards.