Informal sector denied right to social protection

LACK of awareness on business formalisation denies the right to social protection measures to majority of people working in informal sector.
 
It was during the “Informality and Social Protection” workshop in Dar es Salaam, jointly organised by Mzumbe University-Dar es Salaam Campus (Tanzania), University of Nairobi (Kenya) and Roskilde University in Denmark with support of the Danish Ministry of Foreign affairs (Danida).

Dr Godbertha Kinyondo from Mzumbe University, Department of Administrative Studies told participants that the mentioned challenges emerged during the second phase of a four-year (2017-2010) research project, titled “Informal Worker Organisations and Social Protection” conducted by the Universities in Tanzania and Kenya.

The research according her, focused on three sectors which were construction, petty traders and transport, aiming at investigating the emerging collective forms of informal workers access to social protection measures, labour agency and welfare outcomes in Tanzania and Kenya.

“Majority admitted not to know where to go for their business registration. One of the best outcomes of business formalisation is availability of various levies to governments, which contribute in to the national economy growth,” said Dr Kinyondo.

She reiterated that the levies not only for governments but also personal benefit since everybody in the sector has to contribute in to social security fund and benefit from various services, especially health ones.

Dr Lone Riisguard from Roskilde University International Development Studies - Department supported the motion that informal sector is most likely contributing in to economic growth since the study showed that 8 out of 10 people were working there (informal sector).

“The results that 8 out 10 people do informally operate their business give clear picture the sector can contribute in to national economy, and at the same time put people on safe side when the question of social protection comes in,” she said.

Dr Winnie Mutula from the University of Nairobi - Institute for Development Studies said the relevant governments’ authorities should intensify public awareness campaigns to people in informal sector to let them know the business formalisation positives.

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