In Zimbabwe, the informal economy plays a vital role in the nation's livelihood, contributing significantly to employment and income generation.
Estimates suggest that over 60% of the workforce is engaged in informal activities, ranging from street vending to artisanal trades.
Despite their substantial contribution to the economy, informal workers often find themselves marginalized in policy discussions, especially in the budget-making process.
This article explores the importance of including informal economy workers and their associations in Zimbabwe's budget-making process, emphasising representation, equity, informed decision-making, and sustainable development.
The informal economy in Zimbabwe has burgeoned due to various factors, including economic instability, high unemployment rates, and the inability of many to access formal employment opportunities.
Informal workers engage in diverse activities, including trading, manufacturing, and service provision. However, they face numerous challenges, including lack of access to financial services, social protection, and basic infrastructure.
Despite these challenges, informal workers are resilient and resourceful.
They form a significant part of the economy, often filling gaps left by formal sectors.
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Their contributions are crucial for economic recovery and growth, especially in the context of Zimbabwe's ongoing economic challenges.
One of the primary reasons why informal economy workers and their associations must participate in the budget-making process is representation.
Historically, the voices of these workers have been underrepresented in political and economic discussions.
This lack of representation can lead to policies that fail to address their unique challenges or, worse, policies that may inadvertently harm their livelihoods.
By including informal workers in the budget-making process, policymakers can ensure that the specific needs and priorities of this demographic are taken into account.
Representation is not only a matter of fairness but also a means to create more effective and responsive policies.
Informal workers possess invaluable insights into their economic activities and the challenges they face daily.
Their participation in the budget-making process can lead to more informed decision-making.
Policymakers often rely on data and statistics to guide budget allocations. However, these data points may not fully capture the realities of informal workers’ lives.
Informal economy workers can provide qualitative insights that enrich the understanding of economic trends and social issues.
For instance, they can highlight barriers to accessing markets, the impact of regulatory frameworks, and the necessity for specific support services.
This firsthand knowledge is crucial for developing budgets that are responsive to the needs of the informal sector.
Equity and inclusion are fundamental principles of democratic governance.
In Zimbabwe, where historical inequalities have persisted, ensuring that all voices are heard in the budget-making process is essential for promoting social justice.
Informal workers, often marginalised in formal economic structures, deserve a seat at the table.
Their inclusion can help address existing disparities and foster a sense of belonging within the broader economic framework.
By incorporating the perspectives of informal workers, the government can work towards creating a more equitable distribution of resources and opportunities.
Trust between the government and informal economy workers is crucial for effective governance.
When informal workers feel excluded from the decision-making process, it can lead to a lack of trust in government institutions and policies.
This distrust can exacerbate tensions and hinder collaboration between the state and the informal sector.
Involving informal workers in budget discussions can foster a sense of ownership and legitimacy around government initiatives.
When workers see their concerns being addressed in budget allocations, it builds confidence in the government’s commitment to improving their livelihoods.
This, in turn, can lead to greater compliance with regulations and a willingness to engage with formal institutions.
The informal economy is a vital component of Zimbabwe's economic landscape. Recognizing the contributions of informal workers through their participation in the budget-making process can lead to more supportive policies.
For instance, budget allocations for infrastructure improvements, access to credit, and skill development programmes can be directed towards sectors that predominantly employ informal workers.
Acknowledging the role of the informal economy not only benefits the workers themselves but also contributes to broader economic growth.
By investing in the informal sector, the government can stimulate job creation, boost local economies, and enhance overall economic resilience.
Zimbabwe, like many countries, has committed to achieving the Sustainable Development Goals (SDGs).
These goals emphasise inclusive and sustainable economic growth, reducing inequalities, and fostering partnerships for development.
Engaging informal economy workers in the budget-making process aligns with these commitments.
By ensuring that the needs of informal workers are considered in budget allocations, Zimbabwe can make significant strides towards achieving SDGs related to decent work, reduced inequalities, and economic growth.
This participation is not merely a matter of local governance but a step towards fulfilling international obligations.
Participation in the budget-making process can also serve as a powerful tool for capacity building and empowerment for informal workers and their associations.
Engaging in discussions around budgeting equips workers with valuable skills in advocacy, negotiation, and civic engagement.
This capacity building is essential for fostering stronger organizations that can effectively represent the interests of their members.
Empowered informal workers are better positioned to advocate for their rights and influence policy decisions that affect their livelihoods.
This empowerment can lead to the formation of stronger networks and associations, amplifying their collective voice in the political arena.
Informal economy workers often face significant barriers in accessing resources and services.
Their participation in the budget-making process can help identify these barriers and advocate for targeted support.
For example, informal workers may require access to microfinance, training programs, or health services that are inadequately addressed in current budgets.
By incorporating informal workers’ perspectives, the government can allocate resources more effectively to address these challenges.
This targeted approach can improve the overall resilience and productivity of the informal economy, benefitting both the workers and the broader community.
The budget-making process should not be a one-time event but rather a dynamic and ongoing dialogue between the government and informal economy workers.
Their participation provides a vital feedback mechanism that can enhance the effectiveness of policies and programs.
Informal workers can share their experiences with existing policies, highlighting what works and what doesn’t.
This feedback can guide future budget cycles, ensuring that resources are allocated to initiatives that truly benefit the community.
In conclusion, the participation of informal economy workers and their associations in Zimbabwe's budget-making process is not only beneficial, but essential.
It promotes representation, informed decision-making, equity, and inclusion, while also fostering trust and legitimacy in government institutions.
By recognising the vital role of informal workers and incorporating their perspectives into budget discussions, Zimbabwe can work towards more effective and responsive economic policies.
As the country continues to navigate economic challenges, engaging informal economy workers in the budget-making process will be crucial for building a more resilient and inclusive economy. Ultimately, their voices must be heard, and their contributions recognised as integral to shaping a better future for all Zimbabweans.
*Samuel Wadzai is the executive director for the Vendors Initiative for Social and Economic Transformation (Viset). Feedback: Email address: swadzai@visetonline.org
These weekly articles are coordinated by Lovemore Kadenge, an independent consultant, past president of the Zimbabwe Economics Society and past president of the Chartered Governance & Accountancy Institute in Zimbabwe. Email- kadenge.zes@gmail.com and Mobile No. +263 772 382 852
