The National Social Security Authority (Nssa) says it is finalising the launch of its voluntary contributory scheme targeting previously excluded groups such as the informal sector, small-to-medium enterprises and domestic workers.
Presenting a paper to bankers at the Institute of Bankers of Zimbabwe summer school in Nyanga, Nssa regional contributions, collections and compliance manager Agnes Chikwavaire said the increasing informalisation of the economy is drastically shrinking the social security contribution base. She was presenting a paper on how Nssa as a key player in the economy can mobilise domestic resources to uplift small-to-medium enterprises (SMEs) and the informal sector.
"The Zimbabwe economy is now arguably predominantly driven by small and medium-sized companies and the informal sector. Economic growth across all sectors is underpinned by the growth in these SMEs. These SMEs play a key role in terms of employment, income generation and strategic linkages with large companies across economic clusters," she said.
The scheme, which will be on a voluntary basis, will be tailor-made to suit the needs of the target groups to make it both relevant and accessible and is expected to significantly contribute to the authority's collection base.
"There is an urgent need for the development of appropriate social security packages for the informal sector, not only to alleviate the vulnerability of workers in this sector, but also to expand the social security contribution base," she said
In line with the sector, Chikwavaire said Nssa has been investing in infrastructure development as one of its investment avenues.
"Nssa has been investing in these areas either directly or indirectly through supporting funding initiatives by the organisations that are tasked to deal with those areas specifically," she said.