Support to Local Authorities to implement Recommendation 204
As part of efforts to facilitate the transition from the informal economy to the formal, the ILO convened a two-day meeting with Bulawayo City Council (BCC) to review progress towards promoting the transition from informality to formality for micro, small and medium enterprises.
21 March 2021
ILO News, (Victoria Falls) The ILO´s Employment Promotion and Labour Market Governance Programme (EPLMGP) organized a progress update meeting to review the different activities conducted under its partnership with the City of Bulawayo. The City Council has since committed to collaborate with the ILO to apply the principles of the ILO’s Recommendation No. 204 on Transition from the Informal to the Formal Economy of 2015.
The ILO Recommendation Number 204 of 2015 underlines the importance of the transition from the informal to the formal economy in order to realize inclusive growth and decent work for all. The Recommendation No. 204 invites members to sensitize and build the capacity of government, employers and worker organisations on the value of the decent work agenda in realising the sustainable development goals, achieving the imperatives of the national development plan and addressing decent work deficits within the informal economy.
Participating in the meeting were officials from the key departments at the BCC; the National Social Security Authority; the National University of Science and Technology and the ILO.
The meeting was sensitised on the key provisions of the Recommendation and implications for transitioning workers and different economic units from the informal to the formal economy. It also touched on the respect of workers’ fundamental rights, ensuring of opportunities for income security, livelihoods and entrepreneurship and the importance of promoting the creation, preservation and sustainability of enterprises and decent jobs in the formal economy.
The City of Bulawayo leadership agreed on the need to be guided by Recommendation No, 204 in their quest to improve policies and programmes. It was noted that by adopting the key principles of R204, the BCC could then tailor make programmes for the informal economy that would facilitate the transition to the formal economy, review the by-laws, and influence national laws. This would help them to get a better understanding of the different sectors of the informal economy in Bulawayo, for example, vegetable vending, factory shells, street car washes, backyard mechanics, backyard industry, as well as develop sector specific and area-based management and commit to participation and consultation of the various economic units.
The meeting concluded with the ILO being tasked to support the City of Bulawayo with a mapping of development partners that could be interested in supporting phase two of the work already underway. The City is proposing to build on the foundation laid through current activities but set an ambition to reach more people. As a way forward, each department developed a plan of action for 2021 focusing on what they needed to address to effectively support the informal economy.
Ms Phororo, the ILO Director noted that local government’s approach to the informal economy was largely based on by-law formulation, which was a very restrictive approach to a complex issue. This had unfortunately contributed to the marginalization of the informal economy within the national economic development policy. She commended the City of Bulawayo for their collaboration with the ILO and the steps taken on strategies that were more progressive, in responding to the informal economy. Ms Phororo concluded by reaffirming the ILO’s willingness to continue to collaborate with the City.
Mr Dictor Khumalo, the Director of Housing and Community Services for the City of Bulawayo, highlighted the importance of the micro, small and medium enterprises in the City and the broad contribution of those in the informal economy to the general economy of the country. He underlined the importance of local government adopting a coordinated response to support those in the informal economy. He acknowledged that COVID-19 had brought some changes that had made it necessary for the City to innovate. Mr Khumalo concluded by reaffirming the City’s commitment to the collaboration with the ILO, “We are ready to learn from other experiences to ensure that they provide an enabling environment”.
The ILO Recommendation Number 204 of 2015 underlines the importance of the transition from the informal to the formal economy in order to realize inclusive growth and decent work for all. The Recommendation No. 204 invites members to sensitize and build the capacity of government, employers and worker organisations on the value of the decent work agenda in realising the sustainable development goals, achieving the imperatives of the national development plan and addressing decent work deficits within the informal economy.
Participating in the meeting were officials from the key departments at the BCC; the National Social Security Authority; the National University of Science and Technology and the ILO.
The meeting was sensitised on the key provisions of the Recommendation and implications for transitioning workers and different economic units from the informal to the formal economy. It also touched on the respect of workers’ fundamental rights, ensuring of opportunities for income security, livelihoods and entrepreneurship and the importance of promoting the creation, preservation and sustainability of enterprises and decent jobs in the formal economy.
The City of Bulawayo leadership agreed on the need to be guided by Recommendation No, 204 in their quest to improve policies and programmes. It was noted that by adopting the key principles of R204, the BCC could then tailor make programmes for the informal economy that would facilitate the transition to the formal economy, review the by-laws, and influence national laws. This would help them to get a better understanding of the different sectors of the informal economy in Bulawayo, for example, vegetable vending, factory shells, street car washes, backyard mechanics, backyard industry, as well as develop sector specific and area-based management and commit to participation and consultation of the various economic units.
The meeting concluded with the ILO being tasked to support the City of Bulawayo with a mapping of development partners that could be interested in supporting phase two of the work already underway. The City is proposing to build on the foundation laid through current activities but set an ambition to reach more people. As a way forward, each department developed a plan of action for 2021 focusing on what they needed to address to effectively support the informal economy.
Ms Phororo, the ILO Director noted that local government’s approach to the informal economy was largely based on by-law formulation, which was a very restrictive approach to a complex issue. This had unfortunately contributed to the marginalization of the informal economy within the national economic development policy. She commended the City of Bulawayo for their collaboration with the ILO and the steps taken on strategies that were more progressive, in responding to the informal economy. Ms Phororo concluded by reaffirming the ILO’s willingness to continue to collaborate with the City.
Mr Dictor Khumalo, the Director of Housing and Community Services for the City of Bulawayo, highlighted the importance of the micro, small and medium enterprises in the City and the broad contribution of those in the informal economy to the general economy of the country. He underlined the importance of local government adopting a coordinated response to support those in the informal economy. He acknowledged that COVID-19 had brought some changes that had made it necessary for the City to innovate. Mr Khumalo concluded by reaffirming the City’s commitment to the collaboration with the ILO, “We are ready to learn from other experiences to ensure that they provide an enabling environment”.