Namibia Public Policy

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  • Topic: Private sector, Economics, Informal sector
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  • Published : March 4, 2012
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Institute for Public Policy Research

Published by:

Namibia Chamber of Commerce and Industry (NCCI) Namibian Manufacturers Association (NMA) Institute for Public Policy Research (IPPR) Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, acting on behalf of German Ministry for Economic Cooperation and Development (BMZ) Klaus Schade (Institute for Public Policy Research) Survey Warehouse (Pty) Ltd. Solitaire Press (Pty) Ltd.

Supported by:

Study prepared by: Survey conducted by Printed by: Windhoek, May 2011

© Namibia Chamber of Commerce and Industry (NCCI), Namibian Manufacturers Association (NMA), Institute for Public Policy Research (IPPR) All rights reserved.

Key Findings
General economic conditions  Businesses expect the general economic conditions in 2011 to be more positive than in 2010 and in 2009. Access to and the cost of finance remains the major hurdle for micro enterprises. Small, medium and large companies view the lack of skills as their main challenge. The informal sector is negatively affected by the low demand for their goods and services. Obtaining work permits for skilled foreign nationals remains a major challenge for the formal sector and in particular medium and large companies. The informal sector faces a major challenge in enforcing contracts. Respondents also view access to un-serviced and serviced land for business as difficult. The cost of credit is seen by all companies, but in particular micro enterprises and the informal sector, as a big challenge. Access to credit remains a challenge for all, except medium and large enterprises. Providing collaterals is likewise seen by most business as difficult. Overall business people are quite satisfied with the quality of health services provided. However, the rating dropped compared to the previous namBIC 2009 report. Medium and large and to a lesser extent small companies are not satisfied by the quality of educational services provided in the country, while micro enterprises and the informal sector are satisfied. The reliability of potable water and electricity supply is rated across the board as quite good. Respondents also rated the transport infrastructure as good. However, there are regional differences, with the Kunene region in particular lagging behind other regions. Only 11 per cent of all companies spent money on Research & Development in 2010. It is of particular concern to note that medium and large enterprises show less interest in investing in Research & Development in 2011 than smaller companies, since it is usually assumed that larger companies have more financial resources at hand to develop new products. Against this background, it is not surprising that Namibia ranks relatively low in international standards regarding company spending on R&D. According to the Global Competitiveness Report Namibia holds place 90 out of 139 countries. Crime is perceived in general as a problem, but the rating has improved compared to the namBIC 2009 report. Business people view the participation in the public tender processes as not easy, although the rating has improved compared to 2009. In particular medium and large enterprises are not satisfied with the process.

Obstacles to business growth 

Regulatory business environment 

Finance 

Health and education  

Infrastructure 

Research and Development  

Government services and public administration  

Public officials hardly approach the business community for bribes. However, the informal sector experiences more incidences of corruption than the formal sector. Furthermore, the rating has declined compared to 2009 indicating an increase in incidences of corruption. Business life is generally harder for women than men. They view the business environment as more difficult than men and rate the economic conditions less positively. Women are involved in informal sector activities more often than men. This could explain why...
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