April 04, 2022

Covid-19 claims hundreds of businesses

Jo-Maré Duddy and Adam Hartman About two percent of businesses survey in a countrywide census by the Namibia Statistics Agency (NSA) were closed, mainly due to the impact of the Covid-19 pandemic.A total of 61 502 businesses were surveyed in the census, which took place from October 2019 to April 2021. Of these businesses, 1 365 were closed: 1 270 temporarily and 95 permanently.Oshikoto and Khomas reported the highest number of businesses permanently closed. Oshikoto’s number was 26 or 27.4% of businesses surveyed. In Khomas, 18, or 18.9% of businesses surveyed, had to close their doors permanently.In Ohangwena, 282 businesses (22.2%), had to shut down operations temporarily. In Oshikoto the number was 16% (203 businesses), followed by 13.1% in Omusati (167) and Khomas with 10.5% (133).Kunene was the least affected region. Here only two percent or 27 businesses were closed: 26 temporarily and one permanently.‘NEW KID’The Census of Business Establishment 2019/21 Report was officially launched at Swakopmund last week. The 61 502 businesses surveyed employed 348 822 people in total.“This is our new kid on the block,” said Alex Shimuafeni, statistician-general and NSA CEO, who announced the release of four other economic statistic reports, which included the Government Wage Index for the fourth quarter of 2021; the Agriculture Statistical Bulletin for the fourth quarter of 2021; the Annual Merchandise Trade Statistics for 2021; and the Preliminary National Accounts 2021.Shimuafeni explained that the reason for the creation of a business establishment census was to provide detailed structural and demographic characteristics of establishments that will be used to enrich the Statistical Business Register (SBR).Enumerators visited all business establishments countrywide with a fixed location; this excluded open markets and communal farming activities and establishments that were attached to household structures. Establishments were mostly concentrated in Omusati region (18%), Ohangwena (15.6%) and Khomas (15%). Omaheke recorded the least number accounting for 2% percent of the total establishments. More than half of the establishment are situated in rural areas (56.9%). SIZEBased on the micro, small to medium enterprises classification of the size of establishments which is based on the number of employees, the census showed that the majority of establishments are categorized as micro establishments of about 55 804 (90.7%), followed by small establishments at 3 918 (6.4%) and medium establishments at 1 435 (2.3%). Only 345 establishments accounting for 0.6% are considered to be large. Furthermore, the census showed that, 63.1% of establishments (38 797) were sole proprietors while 19.9% (12 210) were close cooperations. Establishments with ownership status of sole proprietors were mainly owned by men with a share of 53%. Nearly 50% of establishments were in ‘accommodation and food service activities’ sector while ‘wholesale and retail trade sector accounted 25.2% of total establishments. During the census period, establishments reported to have 348 822 employees. Most of employees were recruited in ‘wholesale and retail trade’ (66 770 employees) and ‘accommodation and food service activities’ (54 840 employees) sectors. In relation to nationality, the census showed that 98% of the employees were Namibians while 2% were foreign. Non-Namibians employees were prominent in education and ‘wholesale and retail trade’ sectors. WAGE INDEXHighlights from the government wage index, which measures the level of prices that government employees charge in exchange for labour services they provide, showed that the index rose by 1.3% over all government sectors. The central government is estimated to have employed 108 875 officials as at 31st December 2021. Of these, 61.8% were from public administration, followed by 28% in education and 10.2% in the health sector.Government wage bill for the fourth quarter of 2021 expanded and stood at N$6.3 billion.TRADEAs for the agriculture statistical bulletin for the last quarter of 2021, agriculture, fishing and forestry’ sector deteriorated in fourth quarter of 2021 – the three sectors’ GDP share also remaining somewhat stagnant at 8.9%. Looking at international trade, Namibia’s export earnings from commodities of ‘Agriculture, Forestry and Fishing’ sector amounted to N$3.7 billion whereas the import bill stood at N$1.2 billion. The International Merchandise Trade Statistics for 2021 revealed that Namibia exports to the rest of the world amounted to N$68.3 billion, while the total import bill amounted to N$97.6 billion. Thus Namibia recorded a trade deficit of N$29.3 billion in 2021. The main export destinations for Namibia’s products in 2021 were South Africa accounting for 20.1% followed by China (17.9%), Botswana (12.6%), Zambia (7.3%), and Spain (6.3%). Namibia sourced 49.1% of its products from South Africa in 2021 followed by China (7%), India (4.7%), Peru (3.7%) and USA (2.6%).

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