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T0022


Towards universal social protection for the informal sector in Harare, Zimbabwe 
Author:
Vincent Itai Tanyanyiwa (University of the Free State , South Africa)
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Format:
Individual paper
Theme:
Social protection and capability resilience

Short Abstract:

Debate on the social protection landscape in Zimbabwe has gained renewed momentum due to the economy's increasing informalisation, international human rights frameworks and instruments. The National Social Protection Policy Framework aims at reducing poverty through empowering and building resilience for the poor towards social protection universalisation, especially in the informal sector.

Long Abstract:

Social protection is critical for the social and economic development of a country. Social protection schemes have become popular government intervention in developing countries. Universal social protection is rooted in the international rights framework set out by international human rights instruments and social security standards. Social protection is an investment that leads to economic and social prosperity. A universal social protection system is challenging because of increasing inequality, insecurity, instability, and informality in a world economy characterised by globalisation, financialisation and global tax competition. Social protection is now part of a comprehensive global development agenda. Debate on the social protection landscape in Zimbabwe has gained renewed momentum with a call for partnerships and mobilisation of financial and technical resources to ensure that no one is left behind as the country implements Agenda 2030 on Sustainable Development. The National Social Protection Policy Framework for Zimbabwe aims at reducing poverty through empowering and building resilience for the poor. Zimbabwe intends to move towards universalisation of social assistance to all deserving households amid socioeconomic and political challenges. Zimbabwe inherited an exclusionary social system from colonialism. Formal social protection was for the elite. The introduction of a national social security system was to increase social inclusivity. The study sought to explore the extent to which the social security policy of the Government of Zimbabwe (GoZ) has excluded informal sector practitioners from 1998 when the National Social Security Authority (NSSA) was established. The following research questions were formulated: 1) What is the current social protection policy for informal sector workers in Zimbabwe?2) What are the opportunities and limitations towards the creation of a viable social protection policy for informal sector workers? and 3) Is there an alternative model for the implementation of the social protection policy for informal sector workers in Zimbabwe? The methodology used is qualitative. Data collection tools included in-depth interviews with twenty vendors, six key informants and a literature review. The current social security schemes are exclusionary; street traders do not have access to formal social security. Irrespective of the nature of one’s illness, old age, accidents are imminent. Hence NSSA should be more inclined to the informal sector since risks are high. It is difficult for NSSA to take on informal sector employees, a noble idea but with legal limitations. Even if NSSA takes on board informal sector workers, there are chances that it would face resistance from people who are used to clandestine business methods. The informal sector is no longer for the uneducated in the volatile economic situation. Educated people, including the degreed, have joined the informal sector to survive and supplement their meagre incomes. The formally employed who have just joined the informal sector resist taxes imposed on them as they already pay various taxes. In the formal sector, the employer contributes half and the employee another half to NSSA. The question is: Who will contribute to the other half in the informal sector? Asking the informal worker to contribute a double portion results in resistance because of low income, especially for the self-employed unreliable income geared towards formalising social protection schemes, which will help in part payment to NSSA, especially in the current epoch of socio-economic hardships, which supersede futuristic needs. Clear procedures for joining NSSA should attempt to formalise and harmonise the informal sector to achieve universal social protection schemes. Considerations of the different structures of the informal sector should be on board. Section 30 of the Constitution of Zimbabwe states that "…the state must take all practical measures within the limits of the resources available to it, to provide social security and social care to those in need”. The government is responsible for the funding of social protection. Due to limited financial resources, development partners such as civil society organisations, multilateral organisations such as UNICEF, NGOs and the private sector may assist the government in enhancing the funding mechanism's adequacy, consistency, predictability, and sustainability.

The Constitution of Zimbabwe includes an inclusive Bill of Rights emphasising social protection (Sections 80 to 84) and equality of opportunities, non-discrimination, empowerment, and employment creation, focusing on children, the disabled, older people, women, and youth. In addition, specific Acts form the foundation for providing social protection in Zimbabwe. These acts include the Refugees Act (Chapter 4:03), the National Heroes Dependents Act (Chapter 10:06), the Disabled Persons Act (Chapter 17:01), The NSSA Act 17: 04 of 1989, Private Voluntary Organizations Act (Chapter 17:05), the Social Welfare Assistance Act (Chapter 17:06) and the Older Persons Act (17:11). However, there is no realignment of these acts to the 2013 Constitution of Zimbabwe. In addition, 90% of Zimbabwe’s workers are in the informal sector. A “one-size-fits-all” can never solve the problem of social exclusion. The Government should spearhead a national drive on the importance of social security. Some of the strategies that it can adopt include the formalisation of the informal sector and the regularisation of the current traditional social security schemes. These campaigns can only be fulfilled provided there is participation from all stakeholders through enlisting their opinions and recommendations. Zimbabwe has basic social protection systems. The large informal sector is a public policy failure. The economic challenges lead to underinvestment in social protection schemes. The current system is exclusionary, fragmented, and underfunded. Weak social protection sprucing is through informal sector formalisation. The government is a player and a referee in social protection schemes, but its role should be coordination through designing sustainable, social protection schemes than relying on ILO financial support. Informal workers’ non-recognition leaves them uncovered by NSSA. The worsening socio-economic environment enhances self-initiated social protection schemes.

Accepted paper: