Rutendo Nyeve, recently in Victoria Falls
THE National Social Security Authority (NSSA) is set to introduce the Informal Sector Scheme (ISS) — a social security coverage extension to cater for the informal sector which comprises 65 percent of the working population.
NSSA through its social security division currently administers two schemes which are the Pensions and Other Benefits Scheme (POBS) as well as the Accident Prevention and Workers Compensation Scheme (APWCS).
Speaking during an engagement meeting between NSSA and the Parliamentary Portfolio Committee on Public Service, Labour and Social Welfare, in Victoria Falls last Friday, NSSA acting general manager, Mr Charles Shava said the new NSSA scheme, ISS would be launched soon.
“In line with Vision 2030 and Sustainable Development Goal 1, the Government remains focused on poverty eradication of which social security is a key tool in achieving this objective.
However, NSSA is only currently covering approximately 35 percent of the 4.025 million labour force hence excluding more than 65 percent of the working population.
Whilst efforts are being made to formalise the informal sector, it remains a key contributor to economic activities. Similarly, the Government has recognised the importance of coverage extension and has mandated NSSA to undertake the development of a unique scheme, ideal for the informal sector,” said Mr Shava.
He said the International Labour Organisation (ILO) recommendation 204 recognises that the high incidence of the informal economy impacts on the rights of workers and provision of decent working conditions, as such globally many countries were working on the extension of social security coverage to the informal sector.
Mr Shava said work was at an advanced stage with feasibility studies as well as consultations already done.
“We have undertaken a coverage extension feasibility study in partnership with ILO as well as a risk assessment with the internal risk unit.
We have also conducted research and benchmarking engagements with regional countries on approaches for coverage extension.
It is clear that we need to prioritise short-term benefits to build trust,hence the authority engaged with the Zimbabwe Chamber of Informal Economy Associations to gain an understanding of their needs.
They also provided the database of their members across the country. The next step is to undertake the needs assessment survey as strongly recommended in the ILO report. ZIMSTATS has also been engaged.
Due to the financing challenges the Authority through the Ministry has reached out to the ILD, a SWISS Agency for funding support.
Engagements are underway with other development partners and they are quite promising.”
Chairperson of the Parliamentary Portfolio Committee on Public Service, Labour and Social Welfare, Emma Ncube said the scheme would come in handy as the majority demographic dividend was in the informal sector.
“I thank you for the efforts that you are making to secure the future of beneficiaries and our country at large.
Our national vision aims to eradicate poverty by 2030, if our people are not covered, it means we will miss the targets.
I want to applaud you for the efforts you are taking to harness the informal sector. Surely, many people are employed in the informal sector and they lack social protection,” she said.
NSSA has come up with various non-monetary benefits meant to promote livelihoods.
“Cognisant that pension benefits alone will not be adequate to help pensioners escape poverty, NSSA came up with non-monetary benefits initiatives meant to promote livelihoods, enhance shock resilience building as well as preventing poverty in line with Vison 2030, eradicating poverty, leaving no one and no place behind.
We have come up with a revolving loan facility for NSSA pensioners to finance projects for self-sustenance.
We also have a knowledge transfer model and goat rearing scheme for pensioners as well as partnerships for discounts groceries, drugs and other health care products for pensioners.”
He said pensioners were also exempted from bank charges at selected banks, while they could access medical care through their mobile clinics and brick and motor clinics being established. The total number of pensioners under NSSA stands at 220 825. — @nyeve14.