20 January 2018
Tsvangirai golden handshake confirmed
DisGrace sneaks out three luxury cars
ED cuts Bob Singapore crew from 38 to 22
Call for Diaspora Minister and MPs
ED so over confident it worries him
Priscilla demands coup ‘killings’ details
CBD maize roasting must end now: Min
Tsvangirai faces disgraceful exit: Judge
ZTA targets domestic tourism
SOE DEBATE: Privatise most parastatals
Delight as ZBC 'Iron Lady' suspended
Sulu arrested over $4,000 child support
Mapeza targets CAF CL group stages
Tendai Ndoro special - says Ajax coach
Elections: Not a moment to be lost
A view beyond the Zimbabwe coup
Mnangagwa off to Davos empty handed
Economy: the need for a paradigm shift
NSSA establishes fund for SMEs
11/07/2014 00:00:00
by The Source
NSSA ill-managed, needs reform: Unions
NSSA boss gave himself $220k loan
NSSA grabs several bank assets over debts
NSSA to retake land seized by councils
NSSA payouts up 51pc to $84m
NSSA payouts up 51pc to $84m
Govt forcing NSSA to rescue failed bank
Biti told NSSA to put $20m in failed bank

THE National Social Security Authority (NSSA) will provide funding for small to medium enterprises in the informal sector to facilitate their growth into formal businesses, the general manager James Matiza has said.

Zimbabwe’s economy is dominated by the informal sector, made up mainly of small to medium enterprises (SMEs), as the formal sector continues to shrink on the back of a shortage of fresh capital.

A government-sponsored study released last year showed that the informal sector, which is not taxed and is highly unbanked, employs over six million people.

But government, which is struggling to raise income to fund its expenditure due to a shrinking formal sector, is targeting to formalise the informal sector where an estimated $3 billion to $7 billion is reported to be circulating.

“NSSA would play a financing role by making funds available to the Small Enterprises Development Corporation (Sedco) for lending to informal businesses, as a way of transitioning them to the formal economy,” said Matiza in a statement on Thursday, without giving details of the funding.

“The Ministers of Public Service, Labour and Social Welfare and of Small and Medium Enterprises and Cooperative Development are expected to meet soon to discuss cooperation in this exercise.”

NSSA, which falls under the labour ministry, has previously availed millions to Sedco, a government agency for supporting SMEs, for on lending to the informal sector at concessionary rates.

The growth of SMEs will also have an extended benefit for NSSA as it will take on millions on new subscribers for its pension fund, translating to millions in potential income.

“For us, as a social security authority, our primary concern is the fact that workers within the informal sector are not covered by the Workers’ Compensation Insurance Fund and are not contributing to the national pension scheme,” he said.

“Thus we, as NSSA, have an interest in supporting the formalisation of the informal economy, which is why we are ready to provide funding for informal sector businesses as a way of bringing them into the formal sector,” he said.

Subscription to NSSA pension benefits is mandatory for all workers in the formal sector.


Email this to a friend Printable Version Discuss This Story
Share this article:

Digg it






Face Book



comments powered by Disqus
RSS NewsTicker