Loss of 30 000 Employers Raises Concern Over Namibia’s Economic Stability
By TUW
A new analysis by Cirrus Capital has highlighted growing pressure on Namibia’s economy, revealing a sharp decline in the number of individuals identifying as employers over the past five years. The trend is placing added strain on the SME sector, the labour market, and the country’s tax base.
According to the findings, Namibia recorded only 15 000 employers in 2023, down from about 45 000 in 2018, a significant loss of 30 000 employers. The drop is most pronounced among small and medium enterprises (SMEs), which traditionally drive job creation and economic activity.
Robert McGregor, head of research at Cirrus Capital, warns that the fallout from this decline extends beyond the business sector.
“With fewer employers, fewer taxpayers and rising unemployment, pressure on the fiscus only increases,” he said.
Cirrus Capital estimates that around 550 000 people in Namibia are employed, but only 115 000 of them are registered taxpayers — a figure McGregor says is unsustainably low for a country increasingly reliant on domestic financing.
He cautioned that Namibia’s dependence on borrowing from local institutions, particularly pension funds, is approaching dangerous levels. Government borrowing needs have risen from N$21 billion last year to N$26 billion this year.
“Most of that tends to come from the banking sector and pension funds, but pension funds are already holding 49% of their investments in Namibia, beyond the 45% required by law,” McGregor explained.
The Cirrus findings follow an Afrobarometer survey showing that only 19% of Namibian youth prefer entrepreneurship over formal employment, raising further concerns about the future of employer growth in the country.
