The Namibian parliamentary committee on economics proposed measures to enhance conditions for informal workers, including infrastructure development, financial inclusion, and legal frameworks, in line with the ILO Recommendation 204. Highlighting the significance of community initiatives, the committee called on local authorities to improve essential facilities for vendors. Challenges such as high unregistered business rates and lack of financial literacy hinder growth in the informal sector, which predominantly consists of self-employed young women.
The Namibian parliamentary standing committee on economics and public administration has put forth recommendations aimed at enhancing the working conditions of informal sector workers. Key suggestions include the establishment of robust infrastructure, the formulation of comprehensive policy and legal frameworks, and improved financial inclusion for these workers. This initiative aligns with the International Labour Organization’s (ILO) Recommendation 204 (R204), which advocates for a transition from the informal to the formal economy.
Recommendation 204, adopted during the ILO’s 104th session in Geneva, aspires to formalize the informal economy, ensuring income security while preserving formal employment opportunities. The committee has underscored the necessity of community-driven initiatives to fulfill these objectives, highlighting their pivotal role in fostering national economic growth and sustainability. Local authorities are thus encouraged to address challenges within the informal economy by enhancing necessary infrastructure and public facilities.
The committee asserted that “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.” It further stated, “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.”
A majority of informal traders in Namibia are self-employed, with a considerable number being young women possessing at least a junior secondary education. Around 76% of informal businesses function in urban settings, with nearly 85% involved in non-agricultural activities. Despite this, they face substantial obstacles to growth, including limited financial literacy and inadequate record-keeping capabilities. Alarmingly, about 88.9% of these businesses and 84.3% of their workers are unregistered with the Social Security Commission. Furthermore, nearly 60% of informal enterprises operate from home, and only 19% have established fixed business locations, which restricts their access to vital financial and government support.
In conclusion, the parliamentary committee’s proposal emphasizes the critical need to support Namibia’s informal economy through improved infrastructure, legal frameworks, and financial inclusion. The recommendations advocate for essential community initiatives and local authority engagement to enhance the working conditions of informal workers, particularly young women. Overcoming barriers like lack of registration and financial literacy is vital for promoting economic growth and sustainability. Adopting these measures presents an opportunity for Namibia to solidify its economic foundations and ensure that informal sector workers receive the necessary support to thrive.
Original Source: www.namibian.com.na
