Windhoek: Minister of Industries, Mines and Energy, Modestus Amutse, launched the National Steering Committee on the Informal Economy in Windhoek on Friday, urging the committee to prioritise practical and impactful actions over bureaucratic processes.

According to Namibia Press Agency, the committee's goal is to incorporate the informal sector into national development through social protection, increased financial access, and enhanced infrastructure. Its efforts will prioritise inclusive and supportive policies rather than merely focusing on taxation.

Comprising 30 members from various sectors, including taxi associations, the informal sector, and multiple ministries, the committee will operate in alignment with the objectives of the sixth National Development Plan (NDP6). Amutse stated that reforms must be directed towards transforming the informal economy and foster synergy that contributes positively to the mission.

"Our goal is not merely to support the economy; it must be achieved, and we are committed to driving this process towards successful outcomes," he added. The minister noted that Namibia's informal sector, encompassing street vendors, local artisans, and backyard entrepreneurs, has long faced systemic challenges, including high interest rates, inadequate trading spaces, lack of technology, and excessive red tape.

While extensive research has documented these issues, Amutse argued that research alone does not provide solutions and action is necessary, as implementation poses the real challenge. He emphasised that addressing the challenges of the informal economy requires a coordinated national approach.

Under NDP6, his ministry will lead the sector's transformation, focusing on its mandate to drive industrial development, manage national resources, and empower Namibians to enhance their livelihoods and contribute to economic growth. Amutse reminded the committee to remain grounded, recalling that the struggles of street traders have funded the education and opportunities that elevated leaders to their current positions.

"To return to those communities offering only bureaucratic registration requirements or ivory-tower theories would be a failure of duty," he asserted. He stated that formalities should be specific to Namibia, designed to meet local needs. However, he cautioned against becoming "just another committee", emphasising that the time for discussion is over; decisive action is required.

Deputy Director for Regional Economic Development at the Industry Ministry, Pinehas Shinyala, disclosed that the national informal economy contributes 24% to the Gross Domestic Product, employing over 418,000 individuals, which represents 58% of the national workforce. He highlighted the sector's potential to enhance financial access and inclusion, extend social protection to vulnerable workers, and provide dedicated support for youth and innovation, while also creating specific monetary and non-monetary incentives for the informal sector.