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Enacy Mapakame

Business Reporter

Government has disbursed $89 million under the informal sector cash transfer to cushion sectors’ workers across the country from the effects of the Covid-19 pandemic.

The Ministry of Public Service, Labour and Social Welfare said the database for informal sector workers affected by the global pandemic currently stands at 309 146. 

The figures have  however, remained low as many others in the informal sector are reluctant to register and formalise their operations.

The figures were drawn from various associations in collaboration with the Ministry of Women’s Affairs, Community, Small and Medium Enterprises Development.

Presenting during a virtual Public Finance Management Reform Indaba organised by Zimbabwe Coalition on Debt and Development (ZIMCODD), Mr Tawanda Zimhunga, who represented the Ministry of Public Service, Labour and Social Welfare indicated that registrations for affected workers were still ongoing in districts across the country.

“The database of informal sector workers affected by Covid-19 is at  309 146 people with a total amount of $89 million (Zimbabwe dollars) having been disbursed so far.

“Registration of beneficiaries is ongoing and applicants can approach the District Social Development offices at district level in their area of jurisdiction,” Mr Zimhunga said.

The Government is also implementing the Food Deficit Mitigation Programme to assist vulnerable families access food especially grain.

Under this programme, 6,8 million tonnes of grain have been distributed to rural households since the beginning of this year, while a total of 51 557 urban households received a cumulative $30 million in October and November last year under the cash for cereals programme.

Mr Zimhunga however, lamented the shortage of social workers in the country, which is contributing to delays in registration and processing of applications for potential beneficiaries. 

He added that the Ministry was also engaging the Ministry of Finance and Economic Development for an upward review of the rates payable per household.

Speaking during the same event, Vendors Initiative for Social and Economic Transformation (VISET) executive director, Samuel Wadzai said while the Government’s initiatives were commendable, more still needed to be done to cushion the informal sector given its immense contribution to the economy.

“The budgeting of our national resources still shows we are not doing enough for the informal sector, yet that sector fuels the economy — this is where youths are employed. Government can do more for this sector. The delays in the disbursements are also too much yet this programme was launched last year in March and people only started getting funds towards the end of the year,” he said.

Mr Wadzai however, called on the informal sector operators to register and formalise their operations in order to be captured in national databases and  for them to benefit.

Government has indicated its desire to prioritise social protection, which enhances the protection of workers and their dependants against risks that threaten jobs and income insecurity.

There are five pillars of the national social protection policy framework and these are social assistance, social care and support, labour market interventions, social performance and livelihoods support.

However, a constrained fiscal space to cover all people in need is the biggest challenge in achieving adequate social protection.