Africa-Press – Zimbabwe. By Alois Vinga – EMPLOYERS Confederation of Zimbabwe (EMCOZ) says formalisation of Zimbabwe’s informal sector will partly address the problems associated with the parallel market exchange rate hikes, improve livelihoods, and stimulate economic growth among other benefits.
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.
Speaking to delegates during a two day long National Formalisation Strategy workshop co-hosted by the Zimbabwe Congress of Trade Unions (ZCTU), Zimbabwe Federation of Trade Union (ZFTU) and International Labour Organisation (ILO), EMCOZ executive director, Nester Mukwewa said formalization of the sector will solve exchange rate problems.
“If this sector is formalised all the speculative increases of exchange rates on the parallel market where we see dealers gazetting premiums based on assumptions which are outside normal economic fundamentals will be a thing of the past,” she said.
The remarks come at a time when authorities are fighting hard to sustain the local currency stability amid several undercurrents threatening to diminish the gains.
The employers’ boss said formalisation will improve business knowledge skills and bring on board the informal players to share values in line with national economic growth vision.
“Informality is associated with tax avoidance, perpetual poverty, limited access to finance and formalisation will reduce poverty, improve the quality of production and link players to strategic value chains,” she said.
Speaking at the same occasion, ZCTU head of Parliamentary Affairs, Advocacy and External Relations department, Vimbai Zinyama said the country’s informal sector is now ready to take on the next stage of formalization.
“Our engagements with the informal sector shows that they are now ready to become the next generation of investors.They are past the stage of consuming research on their sector because most of them know exactly where they are. So, this agenda of formalisation has the potential to achieve broad based national economic development objectives,” he said.
Zinyama stressed the need to roll out the formalisation strategy with a non-partisan approach but the shared vision of developing the economy for the benefit of ordinary citizens.
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