The Namibian parliamentary committee has called for improved infrastructure, policy frameworks, and financial inclusion to support informal workers. This aligns with the ILO’s Recommendation 204, which aims to transition workers from the informal to the formal economy. The committee highlighted the significant role of community initiatives and urged local authorities to address existing challenges faced by informal traders.
The parliamentary standing committee on economics and public administration in Namibia has proposed essential measures aimed at improving the working conditions for informal workers. These measures prioritize infrastructure development, the establishment of appropriate policy and legal frameworks, and the enhancement of financial inclusion. This initiative follows the committee’s advocacy for implementing the International Labour Organization (ILO) Recommendation 204, which facilitates the transition from the informal to the formal economy.
Adopted during the 104th ILO session in Geneva, Recommendation 204 focuses on formalizing the informal economy while ensuring income security and preventing the deformalisation of existing formal jobs. The committee underscores the significance of community-based initiatives in addressing the challenges faced by the informal economy, which are vital for national economic growth and sustainability.
Furthermore, the committee has called upon local authorities to resolve challenges within the informal economy by providing necessary infrastructure and facilities. They assert, “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.” This highlights the critical need to support informal networks, which substantially influence the national economy’s sustainability.
In Namibia, a considerable segment of informal traders and entrepreneurs consists of self-employed individuals, particularly young women with at least a junior secondary education. Roughly 76% of these informal businesses are located in urban areas, with nearly 85% engaging in non-agricultural sectors. Nevertheless, these businesses face numerous obstacles to growth, including limited financial literacy, inadequate record-keeping skills, along with a high rate of unregistered businesses and employees, reported at 88.9% and 84.3%, respectively.
Moreover, approximately 60% of these informal enterprises operate from home, while only 19% maintain fixed business locations. The absence of formal registration and dedicated business spaces severely restricts their access to necessary financial and governmental support, which is crucial for their development and sustainability.
In conclusion, the parliamentary committee’s advocacy for formalizing the informal economy in Namibia is a significant step towards improving the conditions of informal workers. It emphasizes the crucial need for infrastructure development, policy frameworks, and financial inclusion. By addressing these issues, the committee aims to foster sustainable economic growth while adhering to the principles set by the ILO Recommendation 204. Supporting informal traders and enhancing their access to resources will benefit not only the individuals involved but also contribute to the broader economy of Namibia.
Original Source: www.namibian.com.na
