CROSS-SECTIONAL PROFITABILITY OF NAMIBIAN FORMAL SMALL-SCALE MINING FIRMS IN 1990

Namibia considers formal small-scale mining firms (FSSMFs) as an impor tant part of the solution to the problems of high unemployment, povert y, and the diminishing role of large-scale mining firms facing the cou ntry. However, to be a solution FSSMFs must be profitable first. This paper examines and presents simple estimates and tests of the probabil ity of 25 Namibian SSMFs being profitable. The results suggest that in terms of productivity, specialization, size and structure, small is n ot as beautiful as generally presented. The findings recommend capital formation and competitive diversification of production and products.