Namibian Parliamentary Committee Advocates for Support of Informal Economy
The Namibian parliamentary committee on economics advocates for improving the informal economy through infrastructure development, policy frameworks, and financial inclusion. This initiative is aligned with the International Labour Organization’s R204 recommendation aimed at transitioning informal workers to formal employment. The committee emphasizes community involvement and local authority support in addressing the challenges faced by informal workers, who predominantly consist of self-employed individuals, including young women.
The parliamentary standing committee on economics and public administration in Namibia has recommended essential measures to enhance the conditions for informal workers. These measures encompass development of infrastructure, establishment of policy and legal frameworks, and promotion of financial inclusion. The recommendations follow the committee’s push for the adoption of the International Labour Organization (ILO) Recommendation 204 (R204), aimed at facilitating a transition from the informal to the formal economy.
Adopted during the ILO’s 104th session in Geneva, R204 strives to formalize the informal economy while ensuring that individuals have job security and minimizing the risk of deformalization in formal employment. The committee highlighted the importance of community-driven initiatives in achieving these goals, stating that addressing the challenges within the informal economy is vital for national economic growth and sustainability.
Moreover, the committee called upon local authorities to address the prevalent issues within the informal economic sector by enhancing infrastructure and facilities. They emphasized, “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.”
The committee added, “Addressing the challenges affecting the informal economy is essential and in the public interest, as it significantly impacts the growth and sustainability of the national economy.” It was noted that the majority of informal workers are self-employed, with a notable percentage being young women possessing at least a junior secondary education.
Approximately 76% of informal businesses are located in urban areas, with nearly 85% operating in non-agricultural sectors. However, their expansion is hindered by various obstacles, including a lack of financial literacy and record-keeping abilities, coupled with the high incidence of unregistered businesses (88.9%) and unregistered employees (84.3%) concerning the Social Security Commission. Notably, almost 60% of informal enterprises operate from home, and only 19% possess fixed business premises, significantly limiting their access to necessary financial and governmental resources.
In conclusion, the parliamentary committee has underscored the pressing need for Namibia to implement comprehensive measures to support the informal economy. By enhancing infrastructure, creating conducive policy frameworks, and promoting financial literacy, the committee believes that the transition to a formal economy will not only benefit informal workers but also contribute significantly to the nation’s overall economic growth and sustainability. Addressing these issues is paramount for fostering a resilient economic environment.
Original Source: www.namibian.com.na
