Namibia’s economy is showing two very different sides, with new business registrations rising while the manufacturing sector continues to lose jobs and cut wages.

The Bank of Namibia (BoN) says 4 578 new businesses were registered between April and June, an increase of 27.2% compared with the same period last year.

The central bank says the increase, which is partly seen as a measure of business confidence, is largely driven by close corporations.

“The increase was mainly reflected in the substantial rise in registrations of close corporations, which surged substantially by 29.9%,” the bank says.

Registrations of private companies also increased, although at a slower rate of 6%.

The growth in new businesses comes as the government has introduced measures aimed at helping small businesses get off the ground.

BoN says the Small and Medium Enterprise (SME) Fund was launched to provide qualifying Namibian businesses with grants of between N$50 000 and N$100 000, together with business-development support.

The increased business activity was also reflected in the wholesale and retail sector, where real turnover increased by 8.9% year on year during the second quarter.

The central bank attributes the improvement to factors including lower inflation, continued government spending and increased activity linked to oil and gas exploration.

More business activity also translates into some job creation in the sector.

Source: https://www.namibian.com.na/namibia-sees-registration-of-thousands-of-new-businesses/