The Sunday Mail
As 2015 draws to an end, perhaps the main concern among most Zimbabwean citizens is economic survival for 2016 going forward.
A Zimbabwean High Court ruling made in July, 2015 gave companies the right to lay off workers on three months’ notice.
That ruling resulted in approximately 20 000 layoffs since July, meaning that some people have had to find alternative means of survival, probably in the informal sector.
Now, it is crucial to contemplate how we can introduce a policy that can assist in creating social security.
lt must be emphasised that when the National Social Security Authority (NSSA) Act was first promulgated in 1989, the global economic circumstances and indeed the economic circumstances within Zimbabwe were different from what we have today.
Back then, the country’s developmental design was pinned on the idea of mass employment and the working age citizens would gradually contribute towards various social security related funds and schemes through NSSA.
Now in present day, a significant proportion of our working population are in the informal sector.
Policy makers in general, and the Robin Vela-led NSSA board in particular should seriously consider providing affordable social security schemes to people who are operating in the informal sector.
Let us not forget that the national treasury stated that an estimated unbanked amount of US$3.5 billion is circulating in the informal sector.
That is a matter of concern because that money eventually leaves our shores for South Africa and China where the majority of our imports come from.
Although the informal sector is often imagined as a highly impoverished section of society that is limited to selling apples, bananas and airtime; it must be stated categorically that informal businesses in Zimbabwe are also often lucrative. The impression that informal traders are condemned to poverty is a fallacy that stems from a lack of research. We can correct that misconception by looking at how social security has been achieved in India’s informal sector.
Social security in informal India
In India, informal employment accounts for 93 percent of employment (including the agricultural sector).
One of the primary social security initiatives introduced by the government of India is the Employment Security through National Rural Employment Guarantee (NREGA), through which the Indian government guarantees 100 days of wage-employment in a financial year to every registered rural household.
The policy is primarily aimed at adult members of a rural household who are willing to do unskilled manual work for the 100 day period.
After Zimbabwe’s agrarian reform, a significant number of rural households can benefit from a scheme through which they contribute to an annual NSSA fund in return of farm implements, particularly seed and fertiliser.
This would take the weight off the national treasury which has been providing farming implements to farmers for too long.
At the same time, it would protect farmers from the various bogus schemes out there.
Urban social security
How then can we provide social security to those in the urban areas?
One way is to provide affordable healthcare schemes. If we look at China for instance, the informal population is almost entirely covered by two separate schemes – one for the urban informal sector (URBMI – Urban Residents Basic Medical Insurance) and one for the rural population (NCMS – New Cooperative Medical Scheme).
Perhaps we can introduce low cost healthcare schemes administered through NSSA in partnership with the medical fraternity.
lt is possible for NSSA to play an active role in providing social security schemes, particularly in the areas of food, healthcare and housing; especially bearing in mind that around $3.5 billion is circulating in the informal sector.
◆ Tau Tawengwa is a labour expert and researcher based in Harare. He has a Master’s degree in Industrial Sociology and Labour Studies from the University of Pretoria. Feedback to [email protected], www.zimrays.org
