In a strategic move that repositions the city’s bustling informal economy as a key engine of municipal revenue and economic development, the Municipality of Windhoek has sanctioned the development of twenty new sites for informal traders, effectively ending the era of ad-hoc vending in the capital.
This revelation was made by His Worship Sakarias Uunona, Mayor of the Municipal Council of Windhoek, during the Seventh Ordinary Council Meeting held on Thursday evening.
While the narrative of informal trading has often been one of poverty and desperation, the Mayor’s address presented a starkly different picture: that of a formidable economic force. Citing national statistics, Mayor Uunona noted that the informal economy constitutes approximately 26.5% of Namibia’s Gross Domestic Product (GDP) and employs 58% of the national workforce.
“In Windhoek, the swift expansion of informal trading can be attributed to high levels of unemployment and poverty. However, we acknowledge that informal trading provides income for many households and contributes significantly to economic activity within our municipality,” said Mayor Uunona.
The numbers underpinning this assertion are staggering. To date, the City has developed eighteen open markets, including communal car washes, sustaining an estimated 44,200 residents. Yet, the demand continues to outstrip supply, necessitating a more formalized and commercially viable approach.
The new plan, born from the approved Market Development Masterplan, is a significant pivot toward the institutionalization of the informal sector. By demarcating the twenty sites, the Council is looking beyond mere tolerance of the sector and planning for its structured integration into the city’s economic fabric.
Crucially, the speech revealed that these sites are not merely patches of dirt or parking lots. They are to be operationalized with minimum hygienic conditions pending full formalization. The Municipal Council is actively exploring Public-Private Partnerships (PPPs) and land exchange models with the private sector to provide these locations with water, electricity, ablution facilities, and under-roof shading for storage.
“By implementing controlled measures such as site demarcation, infrastructure provision when funds become available, and the registration of traders, this will also enable Council to monitor compliance and collect relevant levies,” stated the Mayor. This line represents a critical economic shift: the shift from the informal economy being a blind spot in fiscal policy to a revenue-generating segment.
For a city grappling with limited fiscal space, the collection of levies from these temporary sites is a potential game-changer. The revenue generated is earmarked to aid the rollout of future market infrastructure development, creating a self-sustaining cycle of investment and return.
Beyond the transformation of the vending landscape, the Council is making headway in its electrification drive, which serves as a parallel vector for economic growth. In the past eight years, over 8,000 households have been connected to the grid, representing a capital injection of N$157.5 million into the city’s infrastructure. This investment has been primarily funded through government grants, showcasing a productive synergy between central and local government.
However, the next wave of electrification is poised to have an even more immediate economic impact on the construction and engineering sectors. Twelve electrical contractors were recently appointed in April to execute a suite of projects in areas like Okuryangava and Goreangab. With a price tag of N$33.5 million and an implementation period of seven months, these projects are currently a hive of activity, with excavation, pole erection, and conductor installation well underway.
“Work is progressing well on most sites… the Mix Settlement project has already completed connections and ready-board installations for the first households,” Mayor Uunona confirmed.
A lesser-known but highly significant economic initiative is the comprehensive Streetlight Survey Project which commenced officially on 15 July. With an investment of N$12 million and a timeline of 28 months, the project represents a massive asset management exercise. However, its immediate economic benefit is in employment creation. The City created 34 fixed-term employment opportunities, with 30 personnel already recruited and inducted.
The operational strategy for the streetlights is perhaps the most forward-thinking aspect of the rollout. Traditionally, a “survey first, fix later” approach would have left the city in the dark for months. Instead, the City has mandated a simultaneous repair and maintenance cycle alongside the survey work.
“Rather than waiting until the survey is complete, restoration work will occur continuously throughout the project period. This proactive approach will progressively reduce unlit areas, improve road safety and strengthen community security while ensuring immediate benefits for residents,” the Mayor explained.
From an economic perspective, this proactive maintenance model reduces the long-term capital burden on the City by preventing further deterioration of infrastructure. It also directly contributes to the safety and security of businesses and commuters in the capital, reducing the “cost of crime” associated with dark streets.
As the High-Mast Lighting Programme and the new survey project begin to illuminate the city, they are doing more than just providing light. They are catalysts for extended business hours, safer public spaces, and enhanced confidence in the city’s governance.
Mayor Uunona concluded the meeting by highlighting that these strategic investments, bolstered by the upcoming formalization of the informal markets, reflect a collective commitment to building a municipality that is “inclusive, resilient and responsive to the needs of all residents.”
For the thousands of informal traders awaiting a place to ply their trade, and the hundreds of engineers and surveyors currently mapping the city’s arteries, the Council’s latest decisions represent a tangible promise: that Windhoek is moving toward a future where the city’s economic potential is fully lit.