On balance, Namibia’s economy can be described as stable in comparison to other sub-Saharan African countries, with economic growth at around 3.5 percent, an average income of US$ 2000 and satisfactory growth rates. However, economic growth has slowed in recent years. The main economic problems are the continued high unemployment rate and the resulting inequitable distribution of income. Further, the secondary sector is relatively small and the informal sector relatively large, while Namibia’s foreign trade structures are imbalanced. There is a lack of financial services for small and medium-sized enterprises (SMEs). The country has deficits in terms of its public-sector economy and there is very weak investment activity.

In order to strengthen Namibia's economy, GTZ is executing a programme that focuses on the following three aspects:

• Improved development and more growth in the small business sector. This entails an assessment and review of Namibia’s current small business policy, regular census of enterprises nationwide and support for cooperation between public and private actors and sector associations.
• Improvement of the support measures available to small and medium-sized enterprises, giving them easier access to financial resources and general advisory services. An existing pilot programme for micro-enterprises in the north of Namibia is being expanded to encourage a dialogue between the formal banking system and small and micro enterprises.
• Promotion of favourable conditions at local level for small businesses, by coordinating local stakeholders, regional authorities and municipalities. Support for the government in developing a White Paper for local economic promotion.