Country urged to account for informal sector

15 Mar 2018 20:50pm
WINDHOEK, 15 MAR (NAMPA) – A national intervention is needed in order for the country to account for the economic activities that are taking place in the informal sector, and its contribution to the national coffers.
This was said by Michael Akuupa, Director of the Labour Resource and Research Institute (LaRRI), when he signed a Memorandum of Understanding (MoU) with the Namibia Training Authority here on Wednesday.
He explained that the perception is that Namibia does not have an informal economy, thus the intervention will enable Namibia to harness the resources, skills and protect those that are in that sector.
Akuupa said there are many reasons why the country has an informal economy, adding that some are historical while others are structural.
He noted that currently, the issue of the informal sector’s contribution to the national coffers has not been documented as yet, because it is regarded as the Small and Medium Enterprise (SME) sector, which he described as not necessarily an informal activity.
“SME is supposed to be a level you graduate to once you have been in the informal sector for quite some time.”
Akuupa said currently, there are 66 per cent of people that are informally employed in Namibia.
“The informal sector is organic in its emergence and responds to the exclusion of the formal activities, that is why you have people ending up doing things the different way,” he said.
He advised Namibia to learn from developed countries on how to account for the informal sectors.
People in the informal economy are found in sectors such as construction, catering, domestic services and hospitality, amongst others.
The agreement between the two parties makes provision for collaborative research in order to match the research demands of the Technical and Vocational Education and Training (TVET) sector.