At least 40,000 small and medium enterprises (SMEs) are operating in the country supporting over 200,000 Namibians and contributing approximately 12% to gross domestic product (GDP), an official has revealed.
According to Deputy Minister of Youth, Sport and National Service, Emma Kantema-Gaomas, SMEs remain the backbone of Namibia’s economy.
Speaking at BaseCamp Founders Nexus Fireside Series, she said SMEs play a pivotal role in driving development, particularly in rural areas, bridging economic gaps and stimulating local economies.
“It’s a backbone of our economy and the report shows that over 40,000 SMEs support the livelihood of more than 200,000 people and it contributes to approximately 12% of our GDP. This is according to a report that was released this year in May 2024,” she said.
She further explained that despite their significance, the sector faces considerable challenges, including limited access to finance and high failure rates.
Alarmingly, 75% of small-scale businesses in Namibia fail, highlighting the need for targeted support and strategic interventions from stakeholders, including the government and private sector.
“I do not intend to undermine aspiring entrepreneurs but rather to outline the current scenario. This will help us, as stakeholders including the government and private sector consider how we can position ourselves effectively. We must address the alarming 75% statistic, which highlights significant challenges faced by entrepreneurs, particularly the lack of focused support for youth,” she said.
Kantema-Gaomas also said that efforts to address these challenges are underway. This year, 28 enterprises, two from each region have received support, with plans to expand funding to all 121 constituencies.
These initiatives aim to create opportunities for young entrepreneurs, reduce rural-to-urban migration, and drive sustainable economic growth.
“Stimulating the rural economy is vital, as it allows young people to identify and pursue opportunities within their respective constituencies. However, we are witnessing a significant influx of organisations leaving these areas in search of greener pastures and better opportunities,” she said.
The BaseCamp Founders’ Nexus Pilot, is an event dedicated to driving collaboration, sparking ideas, and amplifying the voices of Namibia’s ambitious founders and entrepreneurs.
