ILO calls for integrated efforts towards Zim’s informal sector formalization – NewZimbabwe.com

By Alois Vinga

THE International Labour Organisation (ILO) says working in silos towards the formalization of the country’s informal economy remains one of the major barriers inhibiting tangible results amid calls for a unified approach going forward.

The International Monetary Fund (IMF) ranks Zimbabwe as the world’s second largest informalised economy with an estimated two thirds of the population supporting their livelihoods through the sector’s jobs.

The ‘invisible’ economy has been a thorn in the flesh towards the country’s development trajectory characterized by huge revenue losses due to unaccounted for taxes, economic policy discord since the sector’s structure often makes it difficult to comply.

Against the background, the ILO county office for Zimbabwe and Namibia has been immersed in supportive works aimed at assisting Harare to come up with a clear National Strategy on the Formalization of the Informal Economy.

Speaking at an event to review the landmark policy document recently, ILO Specialist on Informal Economy and Officer-in-Charge of the ILO Office for Zimbabwe and Namibia, Annamarie Kiaga called for a consolidated approach across government’s departments.

“The success of this very inclusive national formalization strategy will not depend only on its clear objectives, as articulated by various stakeholders, including informal economy actors in all the provinces of Zimbabwe.

“There is a need for political commitment, viable integrated Government structures, a strong culture of collaboration and incentives among all stakeholders” she said.

Kiaga’s sentiments come against a realization that several government departments have responsibilities for the informal economy hence the need to integrate existing policies to eliminate fragmentation.

Suggestions are that there is also a need to discourage departments from working in ‘silos’ to achieve seamless governance of this sector of the economy through a whole-of-government approach in order  to achieve the desired results.

The proposed strategy document is a result of 24 months of widespread consultations coordinated in collaboration with the United Nations Development Programme (UNDP Zimbabwe), the ILO supported by the Ministry of Public Service, Labour, and Social Welfare and other stakeholders.