Majority employed in informal sector: UNDP report

A Diagnostic Study on the Informal Sector in Namibia conducted by the United Nations Development Programme (UNDP) in 2020, indicates that 87.2 per cent of employed people in Kavango West are working in the informal sector.

These figures were presented by UNDP Representative to Namibia, Alka Bhatia during a public dialogue that took place at Habitat Research Centre in Katutura on Thursday.

She said the study was done in collaboration with the Namibia Informal Sector Organisation to help inform policy and programmatic design aimed at supporting the sector.

Among the 14 regions, informal employment is highest in the northern four regions with Ohangwena ranked the second highest at 82.4 per cent while Omusati has 74.3 per cent and the Zambezi 68.1 per cent, she said.

The numbers are low in more developed and urbanised regions such as ||Kharas (29.3 per cent), Erongo (31.9 per cent), Khomas (32.1 per cent), Otjozondjupa (35.4 per cent) and Hardap (40.3 per cent). The level of informality is higher among younger people and older persons. It is 67.2 per cent for younger persons in the age group of 15 to 24 years and 94.4 per cent for older persons in the age group of over 65 years.

“Finally, 51.9 per cent of the employed people in Namibia earn their livelihoods from the informal economy, this is a significant number that simply cannot be ignored,” said Bhatia.

She further said when COVID-19 broke out early last year and the government put the country on lockdown, revenue from businesses managed and owned by males was higher than their female counterparts. Because before the pandemic, the male informal business owners were earning on average N.dollars 6 873.25 per month from their businesses. However, this dropped to N.dollars 2 749.30 per month, which is a 60 per cent drop in revenue.

Women, on the other hand, were earning less than men from their business with average revenue of N.dollars 3 254.71 per month before the lockdown. After restrictions were lifted the average revenue women were earning from their informal business dropped to N.dollars 1 350.53 or a 58.50 per cent drop in revenue.

Trade Union Congress of Namibia secretary-general Mahongora Kavihuha who was present, said judging from the figures presented, the informal sector needs the help of all stakeholders to improve their operations, “because clearly, they are contributing to job creation”.

Source: Namibia Press Agency