Current laws and policies do not recognise informal sector 

By: Hertha Ekandjo

The 2025 Diagnostic of Informality in Namibia report has found the informal sector is challenged with invisibility and lack of recognition by current laws and policies.

Launched on Tuesday by the Bank of Namibia, finance ministry and the United Nations, the report pointed out that the laws in Namibia do not recognise the informal economy which is also not reflected in the various acts and national frameworks.

According to the report, the existing legal and regulatory landscape in Namibia often presents significant obstacles rather than support for informal economy actors.

One of the recommendations from the report noted that a fundamental shift is required to recognise, accommodate, and appropriately regulate the informal economy.

Responding to questions by NewsOnOne, labour expert, Herbert Jauch, said the informal economy has become Namibia’s largest source of employment yet remains neglected in policy and practice.

Jauch emphasised that despite its size, the sector still operates without sufficient protection or recognition, and calls for urgent reforms to integrate informal workers into national labour systems.

The informal economy contributes an estimated 25% to the Gross Domestic Product and employs 57.7% of the total workforce, making it a central pillar of the nation’s economic and social fabric.