Rigid Labour Market Deterring Investment

According to research from the Institute of Public Policy Research (IPPR), the government's rigid labour market policy is partially responsible for high rates of unemployment, which were officially recorded at 51.2% in 2008. Although the government disputes both the claim and the actual figure, there is little doubt that uncompetitive minimum wages and regulations protecting inefficient workers from dismissal are a disincentive to investors. Addressing these shortcomings will be essential if Namibia is to diversify its economy away from the mining sector, in which locals have a limited presence anyway.

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