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An initiative to promote the informal economy as well as Small and Medium Entrepreneurs (SMEs) through digital transformation has been unveiled by a consortium.
The Informal Economy Consortium of Zambia (IECZ) will be used as a vehicle to promote SMEs in the country.
The focus of the consortium is to consolidate all efforts of the informal sector and representative organisations to form a united effort to develop and progress the industry.
This will be used to compliment government efforts to create a linkage through various social and economic empowerments.
The development of the informal sector will help achieves government’s agenda of re-constructing the economy, says Small and Medium Enterprise Development Minister Elias Mubanga at the launch of the IECZ in Lusaka on Thursday.
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“With everyone in the sector coming together, it will be easy to communicate the challenges faced by the sector as a united force. The leaders must be accountable to their members.
“The document must be translated into local language so that everyone is able to understand,” Mubanga said.
He said the partnership was expected to be aligned to the Government policy and standards.
Earlier, Labour and Social Security Minister, Brenda Tambatamba, said government acknowledged the contribution of the informal economy in Zambia’s development.
Tambatamba said the informal economy comprised of about half of the global labour force and almost 90 percent of micro, small and medium enterprises (MSMEs) worldwide.
She, however, regretted that the sector was faced with several challenges due to its characteristics with regards to small and undefined work places, unsafe and unhealthy working conditions, low levels of skills and productivity among others.
“Further, with the coming in of the consortium, the various SMEs organisations will be consolidated thereby making it easy for government and like-minded financial institutions to pull their interventions targeting the informal sector in a coordinated and structured manner,” she said.
IECZ president, Frank Mupila, said the purpose of the application is to bridge the gap between the informal and formal.
Mupila said this would support the social, health, economic empowerment and help collect data.
He said the social development of the sector will help reduce the crime rate, poverty levels and gender violence among others.
Meanwhile, Sampay Chief Executive Officer, John Samaras, said the platform will help address the challenge among SMEs of lack of access to affordable finance.
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