Namibian Business Registrations Decline as Tourism and Communication Sectors Show Growth
By Farai Muvuti, Senior Editor
The Namibian economy has registered a notable decline in entrepreneurial activity, with business registrations falling by 34% over the past year. The Bank of Namibia’s latest quarterly report highlights this downturn, reflecting diminished business confidence and suggesting a potential economic slowdown.
On a quarterly basis, the number of newly registered businesses—both close corporations and proprietary limited companies—fell by 14.3%. Business registrations are widely regarded as a leading indicator of future economic activity, and this decline signals a subdued entrepreneurial outlook.
While business formation falters, certain sectors, such as communications and tourism, have demonstrated resilience and growth. The report points to a rise in demand for internet data and mobile usage as evidence of sustained consumer activity in digital communications. Year-on-year, the volume of minutes used increased by 9.4%, while internet data consumption grew by 14%. However, quarter-on-quarter, these figures saw marginal declines of 0.6% and 4.3%, respectively.
This surge in data consumption reflects Namibia’s growing reliance on digital platforms for both personal and professional purposes. Consumers’ increasing interaction with internet-based services highlights the country’s gradual digital transformation, even as other economic indicators waver.
Parallel to developments in the communications sector, Namibia’s tourism industry has emerged as a bright spot. Total airport arrivals rose by 13.9% in the second quarter of 2024 compared to the same period in 2023, reaching 119,923 passengers. Both international and regional arrivals contributed to this upward trend, with regional arrivals alone increasing by 20.9%.
Seasonal factors played a notable role, as tourist arrivals grew 21.9% quarter-on-quarter. Namibia’s continued appeal as a global destination—characterised by its natural landscapes, high-quality hospitality, and diverse tourism offerings—underscores the sector’s economic importance. Furthermore, business-related travel, driven by oil exploration and mineral development, provided an additional boost.
The report’s findings paint a complex economic picture: a dampening of entrepreneurial activity juxtaposed with encouraging growth in sectors integral to Namibia’s economic diversification. The central bank’s insights reaffirm tourism and communication as pillars of resilience in an otherwise challenging economic environment.
For policymakers and stakeholders, the decline in business registrations serves as a clarion call to address structural barriers hampering entrepreneurial initiatives. Concurrently, the performance of tourism and digital communications signals the potential for targeted investments to shore up these sectors as engines of economic recovery.
Meta Description: Namibia’s business registrations fell by 34% over the past year, signalling an economic slowdown, while tourism and communication sectors showed notable growth, according to the Bank of Namibia’s report.
Tags: Namibia economy, business registrations, Bank of Namibia report, Namibian tourism growth, communication sector Namibia, economic slowdown Namibia, internet data consumption, regional arrivals Namibia.
