Employers call for realistic policies in 2026
STAFF REPORTER
As Namibia enters 2026, employers are operating in a business environment marked by modest economic growth, persistently high unemployment, rising input and compliance costs, and continued uncertainty around investment and demand. Economic growth remains below the levels required to absorb new entrants into the labour market, while unemployment continues to place pressure on both businesses and policymakers.
At the same time, employers face increasing cost obligations, skills shortages despite widespread unemployment, and a more complex regulatory landscape. These factors constrain business expansion and limit the ability to create and sustain jobs. Against this backdrop, the Namibian Employers’ Federation (NEF) has reaffirmed the critical role of employers in sustaining businesses, protecting jobs, and supporting economic stability across all sectors.
NEF president Elia Shikongo said employers continue to carry the primary responsibility for employment creation, skills development, and investment, but this can only be sustained if policy frameworks enable businesses to remain viable and competitive.
“Businesses are committed to complying with the law and engaging in good faith with government and organised labour,” Shikongo said. “However, labour and economic policies must take into account affordability, implementation capacity, and their impact on jobs if we are serious about protecting employment.”
The Federation noted that several labour-related developments will continue to affect employers in 2026, including the ongoing implementation of the National Minimum Wage, evolving compliance expectations, and an increased focus on employment impact assessments.
Shikongo cautioned that while worker protection remains a key objective, unintended cost increases and regulatory complexity place real strain on businesses, particularly small and medium-sized enterprises and labour-intensive sectors. “Sustainable jobs depend on sustainable businesses,” he said. “When businesses are placed under excessive cost or compliance pressure, the risk to employment rises. This is a reality that must be acknowledged in policy design and implementation.”
The NEF also emphasised the importance of early, meaningful, and well-structured engagement between government, employers, and organised labour. Shikongo highlighted the value of a publicly advertised and predictable annual calendar of policy discussions and consultations. “Advance notice enables employers and other stakeholders to plan effectively, allocate resources, consult internally, and prepare evidence-based inputs. Predictable consultation processes improve the quality of engagement, support better policy outcomes, and strengthen trust between social partners,” he said.
Looking ahead, Shikongo reaffirmed the Federation’s commitment to representing employers’ interests in labour and economic policy processes, advocating for balanced regulation that supports competitiveness and job retention, and engaging constructively in social dialogue and tripartite forums.
“2026 must be a year of realism, balance, and engagement,” he said. “Employers stand ready to contribute to solutions that protect both businesses and jobs, in the interest of Namibia’s economic future.”
As Namibia enters 2026, employers are operating in a business environment marked by modest economic growth, persistently high unemployment, rising input and compliance costs, and continued uncertainty around investment and demand. Economic growth remains below the levels required to absorb new entrants into the labour market, while unemployment continues to place pressure on both businesses and policymakers.
At the same time, employers face increasing cost obligations, skills shortages despite widespread unemployment, and a more complex regulatory landscape. These factors constrain business expansion and limit the ability to create and sustain jobs. Against this backdrop, the Namibian Employers’ Federation (NEF) has reaffirmed the critical role of employers in sustaining businesses, protecting jobs, and supporting economic stability across all sectors.
NEF president Elia Shikongo said employers continue to carry the primary responsibility for employment creation, skills development, and investment, but this can only be sustained if policy frameworks enable businesses to remain viable and competitive.
“Businesses are committed to complying with the law and engaging in good faith with government and organised labour,” Shikongo said. “However, labour and economic policies must take into account affordability, implementation capacity, and their impact on jobs if we are serious about protecting employment.”
The Federation noted that several labour-related developments will continue to affect employers in 2026, including the ongoing implementation of the National Minimum Wage, evolving compliance expectations, and an increased focus on employment impact assessments.
Shikongo cautioned that while worker protection remains a key objective, unintended cost increases and regulatory complexity place real strain on businesses, particularly small and medium-sized enterprises and labour-intensive sectors. “Sustainable jobs depend on sustainable businesses,” he said. “When businesses are placed under excessive cost or compliance pressure, the risk to employment rises. This is a reality that must be acknowledged in policy design and implementation.”
The NEF also emphasised the importance of early, meaningful, and well-structured engagement between government, employers, and organised labour. Shikongo highlighted the value of a publicly advertised and predictable annual calendar of policy discussions and consultations. “Advance notice enables employers and other stakeholders to plan effectively, allocate resources, consult internally, and prepare evidence-based inputs. Predictable consultation processes improve the quality of engagement, support better policy outcomes, and strengthen trust between social partners,” he said.
Looking ahead, Shikongo reaffirmed the Federation’s commitment to representing employers’ interests in labour and economic policy processes, advocating for balanced regulation that supports competitiveness and job retention, and engaging constructively in social dialogue and tripartite forums.
“2026 must be a year of realism, balance, and engagement,” he said. “Employers stand ready to contribute to solutions that protect both businesses and jobs, in the interest of Namibia’s economic future.”
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