The unemployment rate will decline as more companies increase their workforce during 2012, the Namibian Business and Investment Climate (NamBic) survey revealed.
Klaus Schade, from the Institute for Public Policy Research (IPPR) said that: "40% of employers [who responded to the survey] increased their workforce during 2011 and a further 46% employers plan to increase their workforce, while less than 3% plan to reduce employees."
The survey further shows that one of the main reasons why business growth continues to be hampered, is as a result of low demand for goods and services in the informal sector, while a lack of skills remains a major challenge for the formal sector.
This is the third consecutive time that the NamBic survey is being released. The annual survey collects data from business people on matters concerning the local business and investment climate.
The survey covers all economic sectors with the ultimate goal to improve the country's business and investment climate and in so doing, contribute to economic growth as well as employment and income generation.
Also speaking at the launch of the results, Prime Minister Nahas Angula, said that technology is keeping Africans from developing economically.
"We want things produced by someone else and keep fighting to buy these products at the expense of a local producer," Angula said.
He said that the NamBic survey can be a very useful tool for policy makers and other key players in the economy.
"The survey provides to us some insights into the perception and real issues facing our business sector and those that are affecting the growth of their businesses," Angula said.
He said that government is fully committed to continuously help improve the country's business and investment climate.
"This business climate survey therefore, will be a useful tool in designing and implementing policies which address the specific issues identified by the private sector itself as the key factors impeding the growth of their business and therefore the private sector's ability to make greater contribution to job creation," the Prime Minister said.
He added that the challenge to achieve economic growth requires all stakeholders to play a meaningful role.
"The increased spending by both the public and private sectors in research and development will help us become more competent."