Project Documents Review and Validation Workshop Kigali, Rwanda 10 August 2017

Dar es Salaam/Kigali (ILO News) The ILO in collaboration with the Swedish Embassy in Kigali, and the Ministry of Public Service and Labour (MIFOTRA), Rwanda are developing a project aimed at addressing Decent Work deficits in the informal economy in Rwanda. The project aims at addressing a range of challenges that characterize Decent Work deficits in the Rwandan labour market and implementing part of the strategy for Sweden’s development cooperation with Rwanda which are in line with priorities of the Decent Work Country Programme 2017-2022.

Through this initiative, the ILO has worked on three deliverables, namely:

• A sector selection report identifying sectoral level Decent Work deficits using the market systems approach methodology. Few subsectors selected within the informal economy in order to ensure high impact.

• A report on deficiencies of the current labour legislation and practice in relation to the International Labour Standards and feedback provided for Rwanda by the Committee of Experts on the Application of Conventions and Recommendations, to guide the design of the project, and

• A complete Project Document, including problem analysis, strategy and logical framework with performance indicators and theory of change, direct and ultimate target groups, stakeholder mapping, partners selection, risk analysis, institutional framework and management arrangements.

A one day validation workshop has therefore been organized on 10 August 2017, in Kigali, to present and validate the findings of these deliverables including the different components of the Project document. This will involve tripartite stakeholders, line ministries, representatives from the informal economy workers and NGOs.

About 90% of Rwanda’s workforce is estimated to be trapped in the informal economy while also almost 90% of micro and small enterprises are operating in the informal economy. Although one cannot generalize concerning the quality of informal employment, it most often means poor working conditions and it is associated with working poverty, low productivity and a high level of vulnerability. Some of the common characteristic features of informal employment are lack of protection in the event of non-payment of wages, compulsory overtime or extra shifts, lay-offs without notice or compensation, unsafe working conditions, low productivity, lack of representation and the absence of social benefits such as pensions, maternity leave, accident/sick pay and health insurance

As from the national population and housing census (2012) the informal sector is the major employing sector in Rwanda. It accounts for 64% of output in industry in the country. Unemployment rate in urban areas (7.7%) was more than twice as high as that at the national level (3.4%), whereas it was 2.6% in rural areas. The unemployment rate among active youth (16–35) was 4.0% and 8.7% at the national level and in urban areas respectively.

The project will operate at two related levels and with two synergetic approaches: at the sector level with a market systems approach for decent work and at the central/macro level, driven by the priorities of Rwanda’s Decent Work Country Programme and the findings of the initial diagnostics

The project intends to address a number of decent work deficits in the informal economy which include: Employment insecurity; Low earnings; Poor working conditions embedded in long working hours; Poor occupational safety and health (OSH); Lack of social security; Lack of training; and Lack of representation and other fundamental rights at work

To lessen the effects of increased unemployment and poverty, the government has supported the rapid development of the informal economy. This sector is booming in some towns in the country and contributes to partial reduction of unemployment despite persistent underemployment. The latest statistics from the government indicate that craft activities, whole sale trade, construction and the small retail trade dominate this sector.