The parliamentary committee in Namibia has proposed improvements for informal workers, including infrastructure development, legal frameworks, and financial inclusion, in line with ILO Recommendation 204. The committee stressed the need for local authorities to improve conditions and identified key barriers faced by informal businesses, highlighting their impact on economic growth.
The parliamentary standing committee on economics and public administration in Namibia has proposed measures aimed at improving the conditions for informal workers. These measures encompass the development of infrastructure, the establishment of policy and legal frameworks, and the enhancement of financial inclusion. The proposals align with the International Labour Organization (ILO) Recommendation 204 (R204), which seeks to facilitate the transition from informal to formal economic structures.
Adopted during the 104th session in Geneva, ILO R204 aims to formalise the informal economy, ensuring income security and safeguarding against the deformation of formal employment. The committee underscored the necessity for community-based initiatives in fulfilling these objectives, asserting that addressing the difficulties within the informal economy is vital for Namibia’s economic growth and sustainability.
The committee has urged local authorities to respond to the challenges faced by the informal economy by improving essential infrastructure and 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.” They emphasized that addressing the challenges affecting the informal economy is in the public interest, as it bears considerable impact on national economic growth.
In Namibia, most informal traders and entrepreneurs are self-employed individuals, with a notable portion comprising young women who possess at least a junior secondary education. Approximately 76% of informal businesses are based in urban areas, with nearly 85% operating in non-agricultural sectors. However, several obstacles hinder their progress, including a lack of financial literacy, inadequate record-keeping skills, and high rates of unregistered businesses, totaling 88.9%, as well as 84.3% of employees lacking registration with the Social Security Commission.
Furthermore, close to 60% of informal businesses operate from home, with only 19% established in fixed business premises. This absence of formal registration and designated business space restricts their access to vital financial and governmental support, exacerbating their challenges.
The parliamentary committee’s recommendations aim to enhance the informal economy in Namibia by addressing the critical barriers faced by informal workers. Their focus on infrastructure, financial inclusion, and community initiatives is essential for fostering growth and sustainability within this sector. Moreover, implementing ILO R204 remains crucial to transitioning informal businesses to a more formalized practice, thereby strengthening the national economy.
Original Source: www.namibian.com.na
