The First Lady of Namibia, Monica Geingos, established the One Economy Foundation in May of this year. The organization’s slogan, “one Namibia, one Economy,” describes its plans to bridge the gap between formal and informal entrepreneurship in the African nation.

Namibia’s economy has been improving recently, with Bloomberg calling it the top emerging economy in Africa in 2012. However, informal entrepreneurship (unregulated, untaxed commerce operating without contracts or laws) continues to inhibit the country’s growth potential.

According to the Namibian Statistics Agency, the country’s unemployment rate stood at 27.4 percent in 2012. Many of the unemployed opt to work informally, due to significant barriers to entry in Namibia’s formal economy. However, informal work offers little in terms of long-term growth at the individual and national level. This is the problem the One Economy foundation wishes to address.

The One Economy Foundation will focus on entrepreneurship, early childhood development and health. The most crucial components are professional economic coaching and collateral-free lending. These strategies will help young Namibians—particularly those without preexisting connections to the nation’s high-powered financial sector—get a foot in the door.

According to Geingos, “One Economy is about providing fair opportunity. It’s about providing people with talent with opportunity.” She went on to explain that the need for the One Economy Foundation exists at both ends of Namibian commerce, as many enterprising Namibian bankers need the means to tap into the population of informal workers.

Prior to her involvement in the state, Geingos was one of the key figures in Namibia’s growing economy, possessing major holdings in Namibian mining, banking and media corporations. Her most recent endeavors, as a member of the Economic Advisory Council and First Lady, have been part of a larger effort in Namibia’s war on poverty.

The First Lady’s husband, President Hage Giengob, has also made poverty his focus in recent years. Despite a report in the Journal of Economic Structures stating that Namibia has “one of the most unequal income distributions on the African continent,” the President and First Lady remain hopeful that the nation’s wealth can be redistributed to address the nation’s poor.

Late last year, the president declared an “all-out war on poverty,” after receiving an impressive 87 percent of votes in the Namibian general election.

One Economy has already raised over N$4.5 million for implementation later this year.

– John English

Photo: Flickr