Informal Economy Worth Around N$40 Billion

By: David Shoombe

 

Despite challenges faced by street vendors, taxi drivers, salons, barber shops, domestic workers, and small online stores, the government and central bank consented that the Namibian economy cannot thrive without formalising the informal sector.

 

Data from the country’s Ministry of Finance shows that the informal economy in 2023 was estimated to be 24.7% of GDP, equating to around N$36 billion (at real GDP).

 

It is also estimated to expand to 26.5% of GDP (around N$40 billion of real GDP).

 

Speaking at the launch of the Diagnostic of Informality in Namibia report, Michael Humavindu, executive director of the Ministry of Finance, indicated that the report data tells a different and undeniable story about the Namibian informal economy.