ZCIEA INFORMAL ECONOMY POLICY POSITIONS PROPOSED TO THE GOVERNMENT OF ZIMBABWE TOWARDS TRANSITIONING OF THE INFORMAL ECONOMY

ZCIEA INFORMAL ECONOMY POLICY POSITIONS PROPOSED TO THE GOVERNMENT OF ZIMBABWE TOWARDS TRANSITIONING OF THE INFORMAL ECONOMY

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ZCIEA INFORMAL ECONOMY POLICY POSITIONS PROPOSED TO THE GOVERNMENT OF ZIMBABWE TOWARDS TRANSITIONING OF THE INFORMAL ECONOMY

Introduction
Informal economy in Zimbabwe evolved and has been in existance since the colonisation period. This economy was small and not recognised as a performing sector that contributes to the national GDP. It continued to grow as the unemployed mostly youths and women had to find means of surviving and alleviating poverty. At attainment of independence in 1980 the Informal Economy accounted for less than 10% of the labour force. It immensely grew from the period when the Government adopted and implemented the neo-liberal economic system of the Economic Structural Adjustment Programme (ESAP) from 1991. In more than two decades that followed, the rate of expansion of the informal economy has continued grow to reach 94.5% in 2014 as indicated in the Labour Force Survey of 2014. This has been exacerbated by the effects of the countries’ economic down turn that resulted from:
• Company closures and massive retrenchments that occurred without considering cushioning the retrenches nor rehabilitating them for future and alternative production and employment.
• Lack of stable and sustainable investment in the productive sectors.
• Absence of sustainable employment creation to absorb the retrenches as well as annual school and colleges graduands.
• Lack of development of key production sectors such as agriculture, mining, manufacturing and financial.
• Influx of imported finished goods.
• Lack of recognition of informal economy, its contribution to the national GDP and a conducive business operation environment.
• Non-payment of wages and salaries for those still in formal employment.
• The economic development policies and programmes have maintained a bias in favour of the formal economy which has been shrinking

 

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