NSSA to provide funds for formalising informal economy

Published: 10 July 2014

The National Social Security Authority says it will provide the necessary funds to the informal sector as part of efforts to incorporate informal businesses into the formal sector.

Speaking on his return to Zimbabwe from the recently held International Labour Conference in Geneva, NSSA general manager James Matiza said his organisation would make funds available to the Small Enterprises Development Corporation (Sedco) for lending to informal businesses, as a way of transitioning them to the formal economy.

"The lack of protection of workers within the informal sector was a matter of common concern. For us, as a social security authority, our primary concern is the fact that workers within the informal sector are not covered by the Workers' Compensation Insurance Fund and are not contributing to the national pension scheme.

"Those in the informal sector do not contribute to the scheme and therefore cannot benefit from it. Thus we, as NSSA, have an interest in supporting the formalisation of the informal economy, which is why we are ready to provide funding for informal sector businesses as a way of bringing them into the formal sector," he said.

He said the ministers of Public Service, Labour and Social Welfare and of Small and Medium Enterprises and Cooperative Development were expected to meet soon to discuss cooperation in this exercise. He pointed out that workers in the informal sector did not enjoy many other workers' rights espoused by the International Labour Organisation.

The conference in Geneva came up with proposals for formalising the informal sectors of all countries in the world.

Matiza represented Zimbabwe, which was appointed chair of the government members of the Africa Group in the Committee. The committee adopted a number of conclusions intended to form the basis for a draft recommendation on transitions from the informal to the formal economy that will be considered by the International Labour Conference at its next session, due to be held next year.

Among the conclusions, was one that stated that the denial of rights at work, the absence of sufficient quality employment opportunities, inadequate social protection and the absence of recognised social dialogue were most pronounced in the informal economy.

One of the objectives of formalising the informal economy was to promote decent work for all, it said.
- BH24

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