Informal sector powers 25% of GDP, employs over half of workforce

By: Hertha Ekandjo

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

According to the 2025 National Diagnostic on Informality in Namibia report, the sector is the primary source of livelihood for most Namibians, particularly women, who make up 53 percent of its participants, and youth, for whom it often serves as the only available entry point into economic activity.

Speaking at the launch of the National Diagnostic on Informality in Namibia report on Tuesday in Windhoek, ministry of finance`s executive director, Michael Humavindu, said the data should change how Namibia views its informal sector.
He added that for too long, the conversation about the informal economy has been one of silence and oversight.

Meanwhile, United Nations Resident Coordinator Hopolang Phororo said nearly six in ten workers, and over 85% of those in sectors such as agriculture, fishing, and food services, operate outside the formal system.

The National Working Group on Informality compiled the report in partnership with the Bank of Namibia, UN Namibia, various ministries, and civil society organisations, as part of an effort to formally recognize and empower Namibia’s informal workforce.