Government pushes for formalisation of informal sector

Ivan Zhakata and Anesu January
Public Service, Labour, and Social Welfare Deputy Minister Mercy Dinha has said there is an urgent need to integrate the informal sector into the mainstream economy.
Speaking at the Business Environment Dialogue organised by the Tripartite Negotiating Forum (TNF) economic cluster, Deputy Minister Dinha said the Government is committed to fostering a more inclusive and competitive economic landscape.
“The business environment is the most important aspect of any enterprise,” she said.
“It is shaped by various forces, including suppliers, competitors, Government policies, and economic conditions. A holistic approach is crucial in addressing challenges and identifying sustainable solutions.”
The dialogue session, attended by key stakeholders from various sectors, provided a platform to introspect on economic challenges and propose policy recommendations.
Deputy Minister Dinha said Government recently put in place measures to formalise the informal sector.
“Cabinet recently pronounced several measures to align the formal and informal sectors,” she said.
“These include the mandatory use of electronic money for all businesses and the introduction of a compulsory tax payment system to enhance compliance with tax laws.”
The Government is also working towards reducing duplication of work among regulatory agencies.
This, according to officials, will cut turnaround times and lower costs of doing business.
The African Continental Free Trade Area (AfCFTA) was also a key discussion point at the meeting, with speakers highlighting its potential to boost regional trade and economic resilience.
Said Deputy Minister Dinha: “The full implementation of AfCFTA will help African countries increase their resilience to economic shocks and drive the deep reforms necessary for long-term growth.”
Stakeholders at the dialogue welcomed the Government’s efforts but also urged more engagement with small business owners to ensure that policies are practical and inclusive.
The TNF, established under the TNF Act of 2019, plays a crucial role in addressing socio-economic issues through dialogue between Government, business, and labour representatives.
As Zimbabwe works towards a more competitive economy, the focus remains on creating an environment where businesses—both formal and informal—can thrive while contributing to national development.

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