Vice President Netumbo Nandi-Ndaitwah says 15,000 micro, small and medium enterprises (MSMEs) are registered in the country, contributing approximately 12% to the gross domestic product (GDP).
Speaking at the third Annual African Union (AU) Micro, Small and Medium Enterprises forum, Nandi-Ndaitwah highlighted that the informal sector, predominantly comprised of small businesses, employs 58% of Namibia’s labour force—around 420,000 people.
Despite their substantial contributions to both GDP and employment, MSMEs remain underserved.
“In Namibia, the latest estimates indicate that 15,000 MSMEs are registered and they contribute approximately 12% of Namibia’s gross domestic product (GDP). National statistics indicate that the informal sector, which is primarily composed of small businesses, employs 58% of Namibia’s labour force. This represents a total of about 420,000 people in absolute figures,” she said.
She further explained that it was necessary to establish frameworks to formalise the sector without overregulating it.
She said the frameworks should aim to collect accurate and timely data that could be utilised by policymakers, NGOs, and large corporations to create a favourable environment for MSMEs.
This would ultimately enable MSMEs to play a crucial role in the country’s development.
She said the forum also highlighted Africa’s potential in the entrepreneurial space. Nandi-Ndaitwah highlighted that in 2021, African startups attracted N$9.2 billion (US$5.2 billion) in venture capital, and the continent now boasted five unicorn companies—firms valued at over N$18 billion (US$1 billion).
“The global numbers remain higher, with North America boasting over 600 and Asia over 200 unicorns, however, Africa’s youthful population, with over 60% under the age of 25, presents a distinct competitive advantage,” she said.
She further said across Africa, MSMEs faced challenges like limited access to seed and growth capital. Nandi-Ndaitwah emphasised that this was often a symptom of broader issues, such as insufficient business skills and knowledge.
Therefore, she said focusing on financial empowerment and education was crucial for African MSMEs to access markets and funding opportunities more effectively.
“Our young entrepreneurs possess the energy, creativity, and drive to not only catch up but to position Africa as a global leader in innovation and growth. As we work toward the emergence of thousands of African unicorns, now is the time for all entrepreneurs to aspire to grow beyond the startup and MSME phases,” she said.
