No strides made in changing large informal sector: Mbangu

National Planning Commission Chief National Development Adviser, Sylvester Mbangu said Namibia did not make strides in changing the structure of its economy which consists of a large informal sector, resulting in the majority of the population being in vulnerability.

Speaking at the launch of the Sixth National Development Plan (NDP6) formulation process, Mbangu said for the past 30 years the structure of the economy consists of a large informal sector where the majority of the population earn low wages with no formalised contracts.

This, he said should be of consideration in the NDP6 formulation covering the period of 2024/25 to 2030/31 financial years aimed at addressing Namibia’s ambitions and ultimately improving the standard of living of Namibians.

He explained that Namibian sectors that propel economic growth such as agriculture, mining and fishing amongst others are of low economic complexity and do not allow for much innovation, resulting in an uncompetitive economy.

“Our economy depends much on external sectors without export, we produce what we do not consume and that of which we produce we export it. So our economic growth is volatile because we experience external factors and these are the challenges we are experiencing,” he noted.

At the same event, Prime Minister Saara Kuugongelwa-Amadhila said Namibia’s economy has been exposed to external unprecedented factors eroding purchasing powers of households’ income and putting more pressure on the high levels of unemployment, therefore the NDP6 should be the plan of resolve determination and to foster inclusive recovery for sustainable development.

“The gains that we have made in terms of reducing poverty were almost completely wiped out. Close to 50 per cent of the population is now living in poverty. We should identify game changers across sectors and should adopt innovativeness to optimise outcomes – it should not be business as usual,” said Kuugongelwa-Amadhila.

She noted that the NDP6 process formulation is an integrated planning aimed at leveraging synergies to achieve mutually coordinated results.

The NPD6 theme is ‘Fostering Recovery, Inclusiveness and Resilience for Quality and Sustainable Development’.

Source: The Namibian Press Agency