and Economic Growth in Namibia
FEATURED PAPER
By Alina N. Uugwanga, PhD
Ogongo, Namibia
ABSTRACT
Namibia’s economy is heavily dependent on micro small and medium-sized enterprises, with around 40,000 SMEs and a population of 2.3 million. Despite the adoption of the MSMEs policy, the sector remains underdeveloped. The study aimed to investigate how public policy’s impact on economic growth, through MSMEs in Namibia. Design/Methods: Phenomenology qualitative research design and approach was employed. Purposive sampling techniques were utilized to select a sample of 50 participants, including experienced MSMEs from different sectors, and representatives from institution that dealing with MSMEs. Data collection was conducted through structured questionnaire enabling a comprehensive exploration of participants’ perspectives. An innovative six-step thematic analysis was utilized to analyze the qualitative data. The findings indicate that the public policy positively impacts MSMEs in established towns. However, some MSMEs in upcoming towns and rural areas face significant challenges due to a lack of infrastructure development. As a result, an MSME conceptual model was developed to address the issues raised. The significance of this study lies in identifying gaps in existing public policies and providing recommendations to improve the business climate for MSMEs. The study contributes to the body of knowledge on effective public policy analysis for enhancing economic growth. The research aims to inform researchers, SMEs, industry experts, policymakers, and implementers about various interventions needed to empower MSMEs. The study advocates for public policies to be translated into indigenous languages and supports the implementation of mass food and clothing production an innovation strategy.
Keywords: Effective public policy, economic growth, Impact, SMEs and Namib
1 INTRODUCTION
Namibia is regarded as one of the African countries with an expanding economy that is dependent on its SME sector. With the right legal framework, business infrastructure, reliable power supply, and access to final markets, SMEs can contribute significantly to Africa’s development. This can position the continent as competitive and innovative, creating jobs for unemployed communities, generating income, and providing essential goods and services for Africa’s 1.2 billion population (Murithi,2017)
Still, the economic growth rate of Namibia has been fluctuating in recent years, and in this way, there is a need to evaluate the impact of public policy interventions on economic growth. The integration of public policies to the MSMEs growth framework is significant. MSMEs have made a significant impact on the economic growth and progress of numerous countries. This is primarily because its production method calls to lead to the creation of valuable employment opportunities, by providing jobs and income generation for many people that subsequent a decrease in the poverty level. The study developed a MSMEs conceptual framework based on the six phases of the innovation process as an outcome of the qualitative research exploring effective public policy. An in-depth understanding of this relationship is essential, not only to enhance SME performance but also to contribute toward broader economic stability and growth.
2 BACKGROUND OF THE STUDY
Globally, MSMEs offer employment opportunities for about 50% of the coordinated employment that represent 90% of the world Enterprises (Almansour et al.,2019). Pursuant to the Bank of Namibia, greater than 60% of jobs are generated from MSMEs sector as it plays a significant role in the country, and it contributes 30% of the country’s Gross Domestic Product (GDP)(Bank of Namibia, 2020). The study conducted by Kayabo (2019) emphasizes that despite the contributions made, the poor performance of SMEs has been reported due to various constraints (Kayabo,2019) In response, strategic entrepreneurship and MSME conceptual model developed through the study has been identified as among the approaches that can be used to promote the performance of MSMEs.
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How to cite this paper: Uugwanga, A. N. (2025). Thematic Insight into the Impact of Public Policy on MSMEs and Economic Growth in Namibia; PM World Journal, Vol. XIV, Issue IV, April. Available online at http://pmworldlibrary.net/wp-content/uploads/2025/03/pmwj151-Apr2025-Uugwanga-Impact-of-Public-Policy-on-MSMEs-and-Economic-Growth-in-Namibia.pdf
About the Author
Alina Ndeapo Uugwanga
Ogongo, Namibia
Ms. Alina Ndeapo Uugwanga, PhD, is presently employed as a Control Administrative Officer at Omusati Regional Council heading Ogongo Settlement Office. Prior to that was working as Regional Economic Development Planner for Omusati Regional Council, Namibia. Her professional research field includes the following housing, public policy, micro, small, and medium enterprises (MSMEs), corporate social responsibility, entrepreneurship, local economic development, and international trade.
Her academic background comprises: Recently accomplished a PhD in Business Management at the University of Zambia spanning from 2021 to 2024. A dissertation that included: The impact of effective public policy on improving economic growth: A case of MSMEs in Namibia. Attainment of a Master of Arts (Economic Policy Management) at the university of Zambia 2014. She enhanced her knowledge and skills through targeted training, including courses on trade-related issues such as “Introduction to Trade and Development” and “Trade in Services” at Trapca-Esami in Arusha, Tanzania in 2008 and 2009. She obtained Bachelor of Economics at the University of Namibia in 2004.
She can be contacted at auugwanga@yahoo.com
