November 01, 2024
Economy

Policy overhaul, infrastructure development key for Namibia's informal sector development

October 05, 2023
Policy overhaul, infrastructure development key for Namibia's informal sector development

The Bank of Namibia (BoN) says there is need for urgency in improving infrastructure, supporting the informal sector, and reforming existing policy frameworks to boost the country's informal sector economic growth. 

Speaking during the BoN’s 24th Annual Symposium, the central bank Governor Johannes !Gawaxab said infrastructure, including organisational structures, is a key factor for rural  economic transformation. 

He noted that access to infrastructure networks, such as roads, electricity, mobile telecommunications, and decent housing, are critical enablers of rural economic transformation.

"Firstly, roads are the arteries through which the economy pulses and connects rural areas with urban centres and markets. By linking producers to markets, workers to jobs, students to school, and the sick to hospitals, roads are vital to any development agenda," !Gawaxab said. 

He said improved rural road infrastructure enables connectivity and safe mobility.

This comes as the overall quality of rural roads is far below the target value and “this is because a large part of the rural road network remains unpaved, mostly gravel, unsealed, and poorly maintained”.

The Governor noted that such circumstances make it challenging and difficult for meaningful rural productivity improvements and rural production to take off.

Similarly, BoN Deputy Governor Ebson Uanguta drew attention to the need for robust rural development highlighting the challenges facing Namibia's rural policies.

Uanguta emphasised the urgent requirement for addressing overlapping policies and enhancing the coordination of rural development initiatives.

"Most importantly, the country should tackle the issue of overlapping policies and poor coordination of rural policies by strengthening rural policy coordination. This will require proper rural development frameworks, strengthening the rule of law, proper monitoring and evaluation systems, evidence-based service delivery, strong collaboration with the rural community, and more inclusive decision-making," Uanguta stated.

BoN's Director of Research and Financial Sector Development Emma Haiyambo highlighted the need for enhanced coordination, region-specific approaches, and consistent problem identification.

"We think there is actually a need for us to enhance the effectiveness of some of the provisions that we have in the rural development policies," she urged, highlighting the need for better coordination among stakeholders.

She emphasised the necessity of region-specific approaches, saying: "So, there is no one size fits all. And then what we also think should happen is we need to incorporate region-specific analysis into the design of the new policy and strategy that we are reviewing now."

Eunice Ajambo, an Economist and Development Coordination Officer at the United Nations in Namibia, expressed her concerns about economic disparities within the country. 

She questioned why, despite nearly equal population distribution between rural and urban areas, some people are left behind. 

Ajambo highlighted the substantial differences in household sizes and dependency rates, stating: "In rural areas, household size and dependency rates are significantly higher, with about five to three people in each household." 

Addressing the economic challenges faced by rural households, Ajambo stressed the importance of data for informed decision-making. 

"Rural areas have lower disposable income, and having accurate data helps us make a compelling case and justify our actions, moving beyond anecdotal information," she noted.

She also pointed out the significant portion of rural residents' income spent on food, around 60%, and raised questions about housing affordability, asking whether rural residents are paying a considerable portion of their income for subpar housing.

 

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Last modified on Friday, 06 October 2023 12:51
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