Zimbabwe Chamber of Informal Economy Associations (ZCIEA ) has appreciated the re-opening of the informal economy operations as directed by His Excellency President E.D. Mnangagwa on his phase 3 of level 2 lockdown national address.
The association, in a statement, views the President’s decision as a step up breakthrough for people to start to trade as the lockdown was now bearing bad fruits for the informal economy.
“ZCIEA is fully committed to support pure development of our country Zimbabwe through transformation of informal economy activities into mainstream activities. We know and certainly, believe that this will alleviate poverty and initiate decent living standards for all,” the statement reads.
“This will truly contribute towards the stability of the economy. We are believing in engagement of all key stakeholders as a very possible working model which we will commit to passion and seriousness.”
The President allows the informal to reopen on the condition that players in the sector are registered.
Commenting on registration ZCIEA says the issue of registration of informal economy workers has been an on-going issue over the past decades which we have been contributing to the criminalisation of activities and further disadvantaging the majority decent livelihood.
“It is also important to note that the registration which the President referred to is not an over-night process and it has various categories of compliance and remuneration depending on the line of trade one is involved in. This cannot also be 100% given the target group abilities,” the association says.
“The process should also not be for the benefit of the government only through revenue collection, but must encompass a win – win approach where the informal economy will benefit from key social and economic incentives too.”
The informal sector currently holds 76% of Zimbabwe’s labour force contributing 48% to the country’s GDP according to statistics.
“As ZCIEA, we believe the informal economy is a key driver towards the transformation of Zimbabwe to retool and rediscover its breadbasket state and where poverty will be alleviated even for the future generations,” the association representing the informal sector says.
“This is our big match winner towards the new channels of economic administration as we flatten the curve of COVID-19 and reshaping into the 2030 middle income economy agenda.”