SMEs welcome NSSA’s informal sector scheme
SMALL to medium enterprises (SMEs) have commended the National Social Security
Authority (NSSA)’s proposal to introduce a social security scheme that caters for the
informal sector.
Responding to the structural changes in the economy, which has seen the sprouting of
many informal businesses, NSSA has started developing a scheme to cover small
businesses that are mainly excluded from social security protection.
National Security Authority (Nssa)
On Friday, NSSA acting general manager, Dr Charles Shava, told journalists during a
virtual media mentorship launch programme that the informal sector scheme was
inspired by the desire to bridge the sector’s needs.
He said the authority was already working closely with the International Labour
Organisation (ILO) on the project with stakeholder engagement meetings lined up
countrywide so as to get public views for suitable implementation.
Commenting on the development, Bulawayo Chamber of SMEs programmes coordinator,
Mr Nketa Mangoye Dlamini, said the initiative by NSSA was noble as many players in the
informal sector remain exposed to unforeseen social security risks.
“When we look at the informal or SMEs you find out that it consists of a group of people
who are normally not using insurance,” he said.
“When organisations like NSSA take it upon itself to bring such schemes, it is a good
development, which will also bring better ways of managing the sector.”
Mr Dlamini said most operators in the informal sector conduct business outside the
formal economic structures hence they do not have risk cover in case of incidents of
injury at work, loss of property to fire, accidents, theft or in case of medical
requirements.
Outside of social security cover, he also challenged the insurance sector to tap into sector
and come up with products that suit their requirements.
“We also need to look at the affordability of the product. As far as the premiums are
concerned, products should be designed and underwritten in the sense that they are
accessible and affordable to the informal sector,” said Mr Dlamini.
He suggested that NSSA and other insurance companies should do more to engage the
informal sector and assist its members to grow and formalise.
Mr Dlamini also urged SMEs to formalise their businesses and embrace transparency and
integrity to be able to access loans, secure big markets and win lucrative tenders.
“I continue to call our members to formalise their businesses so that if they get into a
contract with an insurance company it becomes a proper contract with a registered and
existing company, with an identified address,” he said.
SMEs continue to play a major role in the Zimbabwean economy as the sector has
managed toemploy the majority of the people. This has also seen the Government
mainstreaming formalization in its strategies so that players can be able to participate in
tenders and be able to access some critical services.
— The Chronicle
