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INFORMAL ECONOMY

Informal Economy creates Business linkage with Formal Economy

Zimbabwe Chamber of Informal Economy Associations through National Policy Framework for Informal Economy has been advocating for appropriate government policies that facilitate the development of synergies/linkages between Informal economy and formal businesses. Even though the government is yet to develop a policy that facilitates the development of linkages between the informal economy and formal businesses, ZCIEA Harare territorial women’s group managed to create supply linkage with a big formal institution (name withheld). This women’s group (12 members) received funds from the ZCIEA Resilience Building program to initiate projects of their choice. They decided to do a poultry project. They kicked off their project with 250 broilers, which grew well and reached 4 weeks without complications. 

‘A new path to a stable economy’ Formalization of the informal economy

In response to the grievances of Informal workers, ZCIEA developed a policy document on formalizing Informal economy activities. It is therefore crucial that our members are enlightened and educated on formalization which feeds into National Development Strategy 1 (NDS1) and Vision 2030. Despite the challenges encountered by the informal economy workers, formalization can actually be a key lever for reframing and support the human rights of the vulnerable informal economy workers. The Zimbabwe Chamber of Informal Economy conducted online membership awareness training on seven thematic areas of formalization from the 14th to the 16th of June 2021. The seven aspects or themes the facilitators touched on for the training included Respect for and Recognition of the informal, Development of Linkages between the informal economy and formal businesses, Market Access and Infrastructure, Formalization, Financial Inclusion, Social Protection an Devolution. The training covered 12 territories namely, from Chitungwiza, Marondera, Bulawayo, Harare, Chinhoyi, Chipinge, Chimanimani, Karoi, Gwanda, Mutare, Rusape and Chivhu, each territory consisting of 15 ZCIEA members. In a period of 3 days 180 (102 women, 34 men, 36 Youth & 8 PWD) members were equipped with knowledge on what formalization is and its impact on them as informal traders and workers.