Vusumuzi Dube
Robin Muchetu, Senior Reporter
A new social security scheme aimed at supporting the informal sector is being finalised for implementation and will address the needs of a workforce that constitutes 80 percent of the nation’s labour market.
The initiative, spearheaded by the National Social Security Authority (Nssa) seeks to provide essential protection against unforeseen disasters in the informal sector.
Currently, workers in the informal sector lack access to social security, medical aid and funeral insurance, leaving them vulnerable in times of crisis.
Nssa Acting General Manager Dr Charles Shava emphasised the importance of the scheme for a sector that employs a significant portion of the population.
“We are in the final stages of developing the informal social security scheme, having recently completed a critical needs survey conducted by the Zimbabwe National Statistics Agency (ZimStat),” he said.
“The survey is instrumental in understanding the unique characteristics of the informal sector, allowing us to create a well-informed scheme.”
Nssa is collaborating with the International Labour Organisation (ILO) and other international entities experienced in informal sector social security to ensure the scheme’s effectiveness.
Dr Shava added, “Our goal is to implement this scheme as quickly as possible to provide comprehensive coverage for all informal sector workers, often exposed to various workplace hazards. For instance, the risks associated with the operational environments of informal traders such as those at the OK Mart in Bulawayo are significant, and we must address these concerns.”
The authority aims to protect informal workers from workplace hazards and ensure they receive necessary support through funding and training initiatives, which began during the Covid-19 pandemic.
“Despite their hard work, many informal traders lack pension coverage, leaving them without resources upon retirement,” he explained.
“Our aim is to change that.”
Nssa plans to establish mechanisms for registering informal traders under the new scheme, regardless of their current registration status to facilitate their contributions.
“Even a small monthly contribution of $1 can provide some form of security for retirement,” Dr Shava noted.
Highlighting the urgency of the initiative, he pointed out to the devastating fire that razed the Mutize Flea Market in Bulawayo to a shell last year, resulting in an estimated half a million dollars’ worth of losses for over 300 households.
The incident brought to the fore the precarious nature of small businesses against the crucial role that they play in local economies. The Nssa’s new scheme is expected to address those vulnerabilities and provide a safety net for informal sector workers. —@NyembeziMu
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Online Reporter
Bongani Ndlovu