New Era

Majority employed in informal sector - UNDP

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ADiagnosti­c Study on the Informal Sector in Namibia, conducted by the United Nations Developmen­t Programme (UNDP) in 2020, indicates that 87.2% of employed people in Kavango West work 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%, while Omusati has 74.3% and Zambezi 68.1%, she said.

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

“Finally, 51.9% 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.

This is due to the fact that before the pandemic, the male informal business owners were earning on average N$6 873.25 per month from their businesses. However, this dropped to N$2 749.30 per month, which is a 60% drop in revenue.

Women, on the other hand, were earning less than men from their business, with average revenue of N$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$1 350.53 (58.50%).

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”.

 ?? Photo: Nampa ?? Employment creator… A UNDP study on the informal sector in Namibia in 2020 indicates that 87.2% of employed people in Kavango West work in the informal sector.
Photo: Nampa Employment creator… A UNDP study on the informal sector in Namibia in 2020 indicates that 87.2% of employed people in Kavango West work in the informal sector.

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