The Namibian parliamentary committee has proposed measures to improve informal workers’ conditions by enhancing infrastructure, policy frameworks, and financial inclusion. They advocate for the implementation of ILO Recommendation 204 to formalize the sector, emphasizing community initiatives and local authority involvement.
The parliamentary standing committee on economics and public administration in Namibia has proposed several measures to enhance the conditions for informal workers. Key recommendations include developing infrastructure, establishing policy and legal frameworks, and improving financial inclusion for these workers. This follows the committee’s push for implementing the International Labour Organization (ILO) Recommendation 204 (R204), which advocates for transitioning informal workers into the formal economy.
The ILO R204 was adopted during the 104th session in Geneva and aims to formalize the informal economy, ensuring income security while preventing the loss of formal job positions. The committee underscored the importance of community-based initiatives to meet these objectives, highlighting that resolving challenges in the informal economy is vital for national economic growth and sustainability in Namibia.
Local authorities are encouraged to address issues impacting the informal economy by providing necessary infrastructure and facilities. The committee 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.”
Furthermore, they emphasized that addressing challenges in the informal economy is crucial for public interest as it significantly influences the national economy’s growth and sustainability. Many informal traders in Namibia are self-employed, with a notable number being young women possessing at least a junior secondary education. 76% of informal businesses are located in urban areas, and approximately 85% operate in the non-agricultural sector.
Despite the vibrancy of this sector, challenges such as insufficient financial literacy, record-keeping capabilities, and high rates of unregistered businesses (88.9%) and employees (84.3%) with the Social Security Commission impede their potential. Additionally, nearly 60% of informal businesses operate from home, while only 19% possess fixed business premises. This lack of formal registration and business space restricts their access to essential financial and governmental support.
The parliamentary committee in Namibia highlights the necessity of formalizing the informal economy through infrastructure development and financial inclusion. With a focus on implementing ILO R204, the committee urges local authorities to improve conditions for informal workers, emphasizing community-based solutions. The challenges faced by informal businesses, especially among young women, require immediate action to promote economic sustainability and growth.
Original Source: www.namibian.com.na
