Chamwe Kaira
The registration of new businesses, which serves as a leading indicator for future activity in the economy increased by 6.2% during the second quarter of 2023 compared to the same period in 2022, figures released by the Bank of Namibia have shown.
The increase was more reflected in the private company (Pty) Ltd category, which rose substantially by 34.1%. The close corporation category, which accounts for about 90% of the total number of new businesses registrations, increased marginally by 3.5%.
During the second quarter, employment in the wholesale and retail sector increased slightly by 1.2%, while it decreased by 1.4% in the manufacturing sector over the same period.
The yearly increase in employment in the wholesale and retail trade sector was observed in the major monitored subsectors, particularly wholesale and furniture trade. In the manufacturing sector, the decrease in employment was most prominent in beverages, food products and basic metals subsectors.
On a quarterly basis, employment in both wholesale and retail trade and manufacturing increased by 4.7% and 0.6%, respectively.
The nominal wage bill and average wages increased by 10.9% and 13.9%. This was in line with the continued increase in the real turnover in the sector during the quarter under review, which suggests that demand for consumer goods is steadily rising.
The nominal wage bill and average wages in the manufacturing sector registered a yearly increase during the second quarter of 2023. The nominal wage bill and average wages in the manufacturing sector increased by 3.9% and 5.4%.
The yearly increase in the nominal wage bill was reflected across most prominent subsectors, except in the food and non-metallic minerals subsectors.
The central bank said total unit labour costs for the manufacturing sector increased by 16.6%.
“The year-on-year increase in the sector’s unit labour costs was mainly due to the decline in the output per worker and the increased average wages in most subsectors. The increase in the total unit labour costs for the manufacturing sector is unfavourable for the competitiveness of Namibia’s products in the export market,” the central bank said.
