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Informal sector contributes a substantial part of economic activities – Official

Informal sector contributes a substantial part of economic activities – Official

Informal trading remains a critical part of economic activity in the country yet it is one of the most vulnerable due to operational instability and unstable support, a government official said Tuesday.

The sector is a major source of employment and livelihoods for many Namibians, most of whom are women, said the Minister of Industrialization and Trade,  Hon Lucia Iipumbu at the launch of the operational guidelines for the code of conduct for the informal economy.

The important guiding document is meant to establish the framework to regulate the rights, obligations, and responsibilities of all stakeholders in the informal economy.

“The ultimate objective of the operational guidelines of code of conduct is to support the informal sector to be a conducive and profitable entrepreneurial sector.

Namibia’s informal sector is of vital importance as it employs an estimated 150,000 people, contributing an estimated 12% of the gross domestic product.

“Estimates of the size of this sector, its contributions, and composition vary widely within regions and countries across the world. Therefore, establishing the nature and extent of the informal economy in a country is a necessity for the development of sound and targeted policies, strategies, and interventions,” she said noting that it is important to identify the necessary gaps to facilitate the transition of the informal sector into the mainstream economy.

Iipumbu said the launch came at the right time when the ministry is making great strides in the development of the National Informal Economy, StartUps, and Entrepreneurship Policy and Attendant Bill.

Meanwhile, Iipumbu noted that the pilot project to operationalize the code of conduct for the Namibian informal economy will commence in the Windhoek local authority and has specific deliverables.

“We are aware that the COVID-19 pandemic and the geopolitical events currently taking place around the globe have affected all levels of entrepreneurs including our informal traders. The ministry will continue to implement its mandate by ensuring that our businesses are assisted to overcome massive challenges to realize recovery,” she said.


 

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