By: Nghiinomenwa-vali Erastus
The executive director of the Ministry of Finance has consented that Namibia needs to shift from economic growth for its own sake to growth that is linked to economic transformation, adding that the current government policies have paved the way for such a shift.
Michael Humavindu stated this in his presentation at the Economic Association of Namibia (EAN), high-level public discussion themed ‘The Jobless Growth Puzzle: Can Namibia Unlock Inclusive Prosperity?’
Various experts in attendance offered solutions on how the country can move a needle in achieving transformational growth that generates an upward trajectory and wealth for all.
Namibia has experienced periods of economic growth over the years, however, this progress has not translated into sufficient and sustainable job creation.
According to EAN, the persistence of high unemployment rates, particularly among the youth, underscores the disconnect between economic expansion and employment opportunities.
“This phenomenon of jobless growth raises critical questions about the structure of Namibia’s economy, the inclusivity of its growth model, and the policy interventions required to unlock shared and equitable prosperity,” the Association wrote.
The public discussion sought to examine the underlying factors contributing to jobless growth in Namibia, assess the performance of key economic sectors in terms of employment generation, and explore targeted policy strategies to drive inclusive and sustainable development.
Understanding which sectors are driving growth, how many jobs they create, and why traditionally labour-intensive sectors such as agriculture remain stagnant is crucial for shaping effective economic and social policies. With the EAN achieving such an understanding, chances of addressing this challenge – which is central to achieving Namibia’s national aspiration for inclusive and sustainable prosperity – would greatly be increased.
According to Humavindu, the government’s various frameworks, such as NDP 6 and the Ruling Party manifesto, speak to a shift from growth for its own sake to growth that is linked to economic transformation.
He added that the frameworks need to be supported by enhanced productive capacities, institutional capability-building, domestic value addition (value chains development and mineral beneficiation), and employment outcomes.
He said the conversation is often on inclusive growth as a policy objective, but in reality, inclusive growth is an institutional outcome.
“The challenge we are addressing is not whether growth is possible – growth is already happening in several sectors – but rather how to ensure that the benefits of that growth are diffused through the wider economy,” Humavindu noted.
He said the shift required depends on the architecture behind it, on coordination of institutional roles and mandates, and the implementation and evaluation pathways of policies, strategies and initiatives.
At the same time, it will be guided by the strengths of systems and structures that connect public investment to private enterprises, and MSMEs’ easy access to available financial support mechanisms, ultimately creating jobs, alleviating poverty and reducing inequality.
“In other words, it must be mandatory to build and/or strengthen economic governance institutions, collectively formulate and implement policies, strategies and economic initiatives and programmes, and subsequently evaluate related processes and outcomes,” Humavindu stated.
He also called for the government and financial institutions to collaboratively develop and implement financial instruments, targeting MSMEs and informal enterprises, adding that such collaboration would lead to actual employment creation and alleviate poverty.
Speaking to the government’s efforts, Humavindu highlighted that it would be prioritising institutional and infrastructure development, and the collective commitment to implement appropriate policies, strategies, and legal and regulatory instruments. He also stated that such efforts would be “anchored on better coordination, accountability mechanisms, targeting of investment, and integration across ministries and agencies.”
“When institutions are aligned, employment becomes the result of growth rather than a parallel aspiration,” indicated Humavindu.
Speaking at the same event was Jealous Chirove, senior employment specialist of the International Labour Organisation (ILO) Eastern & Southern Africa, who delivered a presentation zeroing in on the jobless growth.
Chirove focused on how Namibia can unlock inclusive prosperity, saying Africa is home to more than 1 billion people, half of whom will be under 25 years old by 2050. He added that the African population is expected to double by 2050 – 2060.
Africa has the youngest population in the world, with an average age of just 19 years.
According to Chirove, the key challenge of growth in the number of jobs is mainly due to the absence of productive and decent employment opportunities.
“Africa also has structural barriers that it faces,” he noted.
Chirove highlighted that the government of Namibia approved the Second National Employment Policy (NEP2), 2013/14 –2016/17. NEP2 was developed through broad-based consultations across national constituents, technically sound, and aligned to NDP 4.
The main goal was to “promote full, productive, decent and freely chosen employment which will eradicate poverty and reduce income inequality.”
However, the Policy wasn’t implemented as planned, and the government, through the Ministry of Justice and Labour Relations, is currently drafting NEP3 and its strategy.
As for the panel discussions, the panellists offered practical insights on how Namibia can address jobless growth and unlock inclusive prosperity. Deputy director at the Ministry of Finance, Hileni Stefanus, shared how the country can attract necessary investments without risks to investors and the government.
“The current framework of Namibian PPP is generic, making it flexible for implementors to factor out specific targets that we want to aim towards. With a generic framework, one can identify what to work on. Specific projects within the contracts create the flexibility to incorporate the changes that we would like to see,” she noted.
Professor of Economics, Denis Yuni, advised on how to combat skills mismatch. “To combat skill mismatch is to do an analysis of the jobs that are available in Namibia or the sectors that are thriving in Namibia and be proactive about that,” he mentioned.
He suggeted identifying the sectors which will need particular jobs in the next two to five years, and then scale backwards and align with the faculties and study programs which students can enroll for in pursuit of the identified jobs.
EAN indicated that the public discussion served as a vital platform to deepen understanding of the structural causes of jobless growth in Namibia.
More importantly, it identified actionable policy options to promote employment creation and strengthen collaboration among key stakeholders across government, the private sector, and academia.
