By: John Steytler, Former Economic Presidential Advisor
Namibia is at the precipice. The numbers are stark, the trends alarming, and the urgency undeniable. According to Cirrus Capital’s Robert McGregor, the number of individuals identifying as employers decreased from approximately 45,000 in 2018 to 15,000 in 2023. In just five years, our country has lost approximately 30,000 businesses, the majority of which are small and medium-sized enterprises (SMEs). This collapse is not merely a statistic; it is a siren for the future of our economy, our youth, and our national stability.
SMEs are the backbone of any thriving economy. If this trajectory continues, Namibia risks hollowing out its entrepreneurial base, leaving behind an economy that cannot generate jobs, innovation, or sustainable growth.
The Namibian Statistics Agency reports youth unemployment at 44.4% in 2023. When discouraged job seekers are included, the broader rate rises to a staggering 61.4%. Urban youth face even higher unemployment than their rural counterparts. Aside from the economic challenge, it is also a social crisis. Young Namibians are being locked out of opportunity, fuelling frustration, dependency, and disillusionment.
Equally troubling is the lack of entrepreneurial ambition among our youth. Only 19% of Namibians aged 18 to 35 say they would choose to start their own business if given the opportunity, according to Afrobarometer. It makes Namibia’s youth the least entrepreneurial in Africa, although they represent 2.1 million of our three million citizens.
The collapse of SMEs is not accidental. It is the result of systemic barriers that suffocate innovation and discourage risk-taking. Rules, regulations, taxes, salaries, and outdated policies form a web of obstacles that make entrepreneurship in Namibia a high-risk, low-reward endeavour.
- Regulatory burdens
- Tax pressures
- Rigid labour policies
Despite these challenges, SMEs remain the most viable path to grassroots economic revival.
To unlock this potential, Namibia must urgently reposition SMEs at the centre of its economic strategy. A task force dedicated to SME revitalisation is essential. It must remove barriers, incentivise entrepreneurship, and restore confidence in the business environment.
Key priorities include:
- Regulatory reform
- Tax incentives
- Access to finance
- Entrepreneurship education
- Digital transformation
Namibia cannot afford another five years of decline. Losing 30,000 employers is not just a setback: it is a national emergency.
The urgency is evident. The risks are real. The rewards, if we succeed, will be transformative. Namibia must act now.
Issued by: R&J Steytler Management Consultants
“Where the Desert Meets the Dawn, Insight Meets Integrity.”
