Namibia is a developing nation in southern Africa that has struggled with a high rate of
unemployment. According to the 2014 Namibian Labour Force Survey, 27% of Namibians are
unemployed (Namibia Labour Force Survey, 2014). Men and women move from rural areas in
northern Namibia to urban areas looking for jobs, but often they do not find employment and
cannot afford to live in the city. These issues have caused an increase in the size and number of
informal settlements on the outskirts of major cities (Pendleton, 1996). Katutura is one of these
informal settlements on the outskirts of Windhoek, the capital of Namibia. The absence of
regulations and wealth in these informal settlements have led to a lack of a formal economy,
structured education, and professional training (Kaes, 2013). In 2014, 59.8% of the Namibian
population worked in the informal sector in activities such as running a hair salon, bar, or food
stall (Namibian Labour Force Survey, 2014, Shindondola-Mote & Ohlsonn, 2013). A lack of
formal jobs makes self-employment and entrepreneurship a vital part of informal economies.
Many individuals with informal employment desire to improve and formalize their businesses,
while those with no jobs seek opportunities to generate income.
MSR, formerly known as Men on the Side of the Road, is a non-profit organization that
aims to reduce unemployment in the informal settlements of Windhoek. This organization
provides training programs, links its participants with short and long term employment
opportunities, and encourages its members to start their own businesses (“Men on the Side”,
2016). Additionally, MSR seeks to address the issue of waste management and recycling in
Windhoek (Beukes, personal communication, February 2, 2017). In 2008, the city of Windhoek
produced 230 kg of general waste per capita (Hasheela, 2009). Wood pallets, oil drums, tires,
and plastic bags are commonly lying on or near the streets of Katutura. Since there is not a
formal government-run recycling program in Namibia (Windhoek Waste Management
Regulations, 2011), MSR hopes to take advantage of the available materials to manufacture
products.
Multiple organizations have attempted to establish entrepreneurship programs in Katutura
to encourage self-sustainability. A previous MSR project attempted to sell blocks of compressed
paper in Katutura as an alternative to firewood. MSR discontinued the project due to marketing
2
and distribution issues, product faults, and lack of profit. In 2014, a team of researchers from
Worcester Polytechnic Institute proposed an improved block design, a more appealing price
structure, and a better distribution scheme (Hunt et al., 2014). Their suggested business model
focused on selling the blocks to existing third-party retailers, who would sell them for a profit.
However, MSR again abandoned the project because of product faults, and a lack of consumer
appeal.
In 2016, MSR began teaching an entrepreneurship training program to help members
develop their entrepreneurial skills. This training focuses on starting small businesses, marketing
tactics, and financial planning. In January 2017 Team Namibia began promoting the production
and sale of quality goods within Namibia. This non-profit organization is training and supporting
25 existing entrepreneurs in Katutura to develop their businesses using funding from the
Embassy of Finland (Namibia Economist, 2016).
Previous efforts to introduce entrepreneurship in Windhoek and Katutura have not
succeeded due to a lack of necessary understanding of the market, while successful employment
efforts have not created enough jobs. Past research did not include proper collaborations to create
products that appeal to target customers. Furthermore, previous projects have not developed an
appropriate guide for a production and marketing strategy. These strategies would provide
guidance to those looking to start their own business and include information such as the target
market, competitors, and marketing strategies for building a successful business. Despite the
efforts of MSR and other organizations, employment opportunities in Katutura are still scarce.
Poverty is still rife in informal settlements, with the unemployment rate remaining relatively
stable over the past five years (Namibia Economist, 2016). If research engages current
entrepreneurs, develops a desirable product, and provides production and marketing strategies,
entrepreneurship programs will be more successful in creating opportunities for selfsustainability.
This project will investigate existing research gaps to assist MSR in providing a business
opportunity for unemployed men and women to create a marketable product from recycled
materials. This investigation will achieve this objective through discussions with MSR, design
prototyping with MSR members, and interviews with existing business owners, potential
3
entrepreneurs, and target customers. The team will supplement these interviews with background
research on self-employment and entrepreneurship in Windhoek and Katutura. After collecting
this information, we will analyze entrepreneurship strategies around Windhoek, design and
analyze a marketable product made from recycled materials, and recommend a production and
marketing strategy for MSR members to manufacture, market, and price the final product.