Cabinet has approved the National Formalisation Strategy aimed at integrating informal sector players into the mainstream economy, improving access to social protection, and strengthening the growth of small and medium enterprises.
Addressing the media during yesterday’s Post Cabinet Briefing, the Minister of Information, Publicity and Broadcasting Services, Soda Zhemu, said Cabinet has adopted the strategy.
“The National Formalisation Strategy seeks to provide workers and businesses with social security, labour rights and access to financial services, while addressing challenges such as lack of protection, unsafe working conditions, low incomes and limited representation,” said Minister Zhemu.
He added that the initiative is designed to create a structured pathway for the formalisation and growth of enterprises, particularly targeting small and medium enterprises (SMEs).
“The strategy will facilitate the promotion of SMEs by streamlining procedures and enhancing access to markets and financial resources, thereby enabling businesses to transition into the formal economy,” he said.
Minister Zhemu highlighted that the strategy is anchored on eight key priorities.
“The priorities include the formulation of macroeconomic policies that support employment creation, comprehensive regulatory review, enterprise development, improved access to markets and finance, and strengthening representation for workers and businesses,”Minister Zhemu added
He noted that special emphasis will be placed on supporting marginalised groups such as youth, women, persons with disabilities, and veterans of the Liberation Struggle to ensure inclusive economic participation.
“The implementation framework will be supported by coordinated funding from Government, development partners, the private sector and social security institutions, with a clear monitoring and evaluation mechanism to track progress,” he said.
Government expects the strategy to enhance productivity, improve working conditions and increase revenue collection through the broadening of the formal tax base.
The National Formalisation Strategy is part of efforts by Government to promote inclusive economic growth and sustainable livelihoods.
