Namibia’s Parliamentary Committee Advocates for Formalisation of Informal Economy

The Namibian parliamentary committee on economics has proposed improvements for informal workers, including infrastructure development, policy frameworks, and financial inclusion, in line with ILO Recommendation 204. The focus on community initiatives and local authority support aims to foster growth and sustainability in the informal economy, which is crucial for national economic health.

The parliamentary standing committee on economics and public administration in Namibia has put forth recommendations to enhance the conditions for informal workers. Key proposals include developing crucial infrastructure, establishing comprehensive policy and legal frameworks, and promoting financial inclusion. This initiative aligns with the International Labour Organization (ILO) Recommendation 204 (R204), which encourages the transition from the informal to the formal economy, focusing on income security and the protection of existing formal jobs.

The committee highlighted the significance of community-based initiatives in tackling these issues, asserting that addressing the obstacles within the informal economy is vital for the nation’s economic prosperity. Local authorities are urged to provide necessary infrastructure and resources for informal workers, including sufficient market spaces and sanitation facilities. They stated, “Local authorities and regional councils must provide appropriate infrastructure and facilities, including adequate market space for vendors and basic sanitation such as water taps and ablution facilities.”

Informal traders in Namibia are predominantly self-employed individuals, particularly young women who possess at least a junior secondary education. It is noteworthy that approximately 76% of informal enterprises are located in urban areas, with nearly 85% operating in non-agricultural sectors. Nevertheless, numerous challenges impede their growth, such as inadequate financial literacy, high rates of unregistered businesses (88.9%), and unregistered employees (84.3%) with the Social Security Commission.

In summary, the parliamentary committee’s recommendations emphasize the need for Namibia to formalize its informal economy through infrastructure development, policy support, and financial inclusion. The emphasis on community-based solutions and the necessity of local authorities to provide essential resources underlines the importance of addressing the challenges faced by informal workers for national economic growth. By doing so, Namibia could enhance stability and opportunities for its informal sector, which significantly contributes to the economy.

Original Source: www.namibian.com.na