Namibia steps up formalisation drive
Government has moved to bring Namibia's informal economy into the formal fold with the establishment of a 35-member National Steering Committee on the Informal Economy.
Industralisation minister Modestus Amutse presided over the inauguration of the committee on Friday, 21 August 2026, at the Namibian Institute for Public Administration and Management (NIPAM) in Windhoek.
He said sustainable industrialisation could not be achieved if a significant portion of the economy remained excluded from mainstream development opportunities.
"The informal economy remains one of the largest drivers of employment and income in the country as it accounts for 58% of the workforce, of which 59.8% are located in rural areas," Amutse said.
According to the minister, Namibia's informal economy was valued at US$13 billion in terms of purchasing power parity in 2025, accounting for 26.5% of gross domestic product (GDP).
However, Amutse pointed out that the informal economy was faced with enormous challenges, with many informal businesses struggling to access affordable finance, suitable trading premises, markets, business development services, technology and reliable infrastructure.
Others, he said, faced regulatory and administrative barriers that made it difficult to transition from informal activities into sustainable formal businesses.
"These challenges require a coordinated and practical national response," the minister said.
Amutse pointed to the finalisation of the National Informal Economy, Startups and Entrepreneurship Development Policy (NIESED) as one of numerous steps taken to provide "an accommodative and enabling environment for the informal economy, startups and entrepreneurs".
"Formalisation must not be understood merely as bringing informal operators into a system of registration and compliance," the minister said.
"It must also mean bringing benefits closer to them — access to finance, markets, infrastructure, business development services, social protection, information and opportunities.
"Let us move from viewing formalisation as a regulatory requirement to making it a pathway to opportunity, productivity, protection and growth," he said.
Diina Nashidengo, the inaugural chairperson of the committee, emphasised that it was the first of its kind and had been established to coordinate government initiatives aimed at supporting the informal economy's transition into the formal economy.
"We are going to look at issues related to registration, we are going to look at issues related to social protection, and we are going to look at issues related to the representation of informal workers in the mainstream economy," Nashidengo said.
