In Namibia, much like with all developing economies, micro, small and medium enterprises (MSMEs) play a crucial role in socio-economic development, in that they are significant participants in creating jobs and generating incomes. In a country with an unemployment rate as high as ours, the role of MSMEs becomes even more important. While recent, comprehensive data is not available, and while we do not, for sure, know the size of the MSME sector in Namibia, we know from a 2017 study by the International Finance Corporation that there are approximately 71 000 MSMEs in the country.
We also know from the 2016 National Policy on MSMEs that MSMEs in Namibia provide employment and income to around 160 000 Namibians – nearly a third of the country’s workforce – and contributed around 12% of gross domestic product (GDP). Of course, the availability of reliable, up-to-date and recent comprehensive data on the sector, in itself, is a problem that requires urgent redress. For us to effectively design and implement high-impact programmes, especially at scale, we need access to reliable, up-to-date and comprehensive data.
Be that as it may, data available to us – through surveys and in academia – all seems to point to two factors that significantly impact the business success of MSMEs: access to financing and inadequate business management skills. From the 2004 and 2023 reports on MSME development in Namibia of the Institute for Public Policy Research (IPPR), we also know busines.