By: Vetondouua Tjivikua
PDM Member of Parliament Johannes Martin has called for the establishment of an informal traders union.
According to the MP, this is to protect and lobby for the interests of the informal sector in the context of economic reforms to take place across our town.
The informal sector plays an important role in our economy. In 2018 the unemployment rate in Namibia was at around 33.45%, and 448 674 Namibians were employed in the informal sector. Therefore it is clear enough that the informal economy plays a significant role in the lives of many Namibians.
“The long-held conventional stereotype that the informal economy is just a black sheep market characterised by the non-payment of taxes, raising unfair competition against the formal market and not linked to the formal economy is far from the truth”, Martin said.
Martin further stated that the informal economy is the most significant contributor to the economy of any country, including Namibia.
According to Martin, it is regretful that the importance of the informal economy in Namibia continues to be disregarded. The majority of those trading in the informal economy live in fear and insecurity.
Their services are regarded as illegal in the country, and they are treated like criminals by law enforcement bodies.
Because there are limited opportunities in the formal economy, many people are forced into the informal economy to generate an income to improve their living standards. Most of them do not have a permanent trading structure, so they move from place to place in search of a better market for their products. Products in the informal sector are easily excessed by the people who don’t get enough time to go to the big malls, and they are also much cheaper than the products in the formal economy.
“We have witnessed regularly the conflict between those who trade in informal economy and law enforcement officials”, he said.
He further added that 70% of women in Namibia are traders in the informal economy, and they are being humiliated when they try to work hard and provide for their families. The majority of those in the informal economy have no one to run to for social or legal protection, and in most cases, no one is prepared to listen to them.
“The suppression of informal traders does not solve any problem but instead creates more problems.
“It gives birth to unemployment and contributes to a rise in poverty, thus capturing a rise in crime across the country”, said Martin.
According to the MP, the duties of the informal traders union will be to ensure there is a good connection with the law enforcement bodies.
It will also facilitate the formulation of policies and regulations that will be rational to both the informal traders and the authorities, to represent, educate and promote sensitise the public on the importance of the informal economy, to improve the livelihoods of informal traders in efforts of alleviating poverty and inequality etc.
Martin further stated that other countries that had established similar unions, such as Ghana, have founded the Informal Hawkers and Vendors Association in 2003, which have over 600 members, and it is still successful.
“It is for this purpose I move this motion for this house to debate the need for the establishment of an association for the informal economy. I also move this motion to be referred to the relevant standing committee,” Martin said.
The restriction imposed in Namibia in response to COVID-19 meant that thousands of informal traders who sell prepared food and fresh fruits and vegetables lost their livelihoods.
