CHAMWE KAIRA
Namibia is one of the sub-Saharan countries that have seen their youth shares of populations peak and will face less severe job creation pressures, the International Monetary Fund (IMF) revealed in the regional economic outlook.
The IMF said many middle-income countries like Botswana, Ghana, Namibia, and Mauritius have seen their youth shares of populations peak and will face less severe job creation pressures.
The IMF has projected the Namibian government to grow by 4.2% in 2025, compared to 4.2% this year and 31% in 2023.
The unemployment rate in Namibia decreased to 19.60 percent in 2023 from 20 percent in 2022. The unemployment rate in Namibia averaged 20.94 percent from 1991 until 2023, reaching an all-time high of 24.50 percent in 1997 and a record low of 16.80 percent in 2012, according to World Bank data.
The fund said young people in sub-Saharan Africa, especially young women, face particularly steep obstacles to securing higher-quality jobs, including a shortage of available formal jobs.
The fund said many end up in lower-tier informal work or unemployed, leading them on a path of instability.
“Over one in four young Africans are not in education, employment, or training, with two-thirds of those being young women. Barriers include skills mismatch, restricted access to professional networks, and a lack of critical job market information,” the IMF said.
The fund said young women are often limited by domestic responsibilities and face discrimination. The experience paradox, where a lack of work experience hinders entry into the formal sector, is worsened by the limited availability of jobs, putting young people at a disadvantage compared to older cohorts, the report said.
“Almost 40% of young men and 50% of young women have been looking for a job for over a year, with longer unemployment spells increasing the likelihood of transitioning into unstable, informal work.”
The IMF said Sub-Saharan African countries are implementing difficult and much-needed reforms to restore macroeconomic stability, while overall imbalances have started to narrow.
The fund said Sub-Saharan Africa urgently needs to create jobs for its growing population, especially in fragile and low-income countries.
It added that the region’s labour markets face high informality and obstacles to job creation, resulting in too few good jobs.
The IMF said Sub-Saharan Africa has made significant strides in reducing gender inequality over the past two decades, yet challenges remain.
“Despite improvements in labour force participation and political representation, gaps persist in education, health, and access to financial resources. Legal barriers and harmful practices like child marriage and gender-based violence limit women’s opportunities, restricting their economic empowerment.”
The fund said addressing these issues is crucial for boosting productivity and fostering inclusive growth in the region. It further said policy recommendations emphasise legal reforms, improving educational access, and fostering financial inclusion.
“Empowering women can drive economic diversification and reduce poverty, creating a more resilient and dynamic workforce that supports long-term economic stability in Sub-Saharan Africa.”
