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African Regional Forum highlights social protection strategies for workers in the informal economy
The role of social protection in fostering formalization was discussed through innovative approaches from Cabo Verde, Cote d’Ivoire, Morrocco and Zambia at the tripartite African Regional Forum ‘Innovative Approaches to Addressing Informality and Promoting Transitions Towards Formality’, held from 13 to 15 November 2024 in Abidjan, Cote d’Ivoire. The event was organized by the ILO Regional Office for Africa, in collaboration with the ILO Action Programme on Formalization and the International Training Centre of the ILO (ITCILO) in Turin.
The session ‘Extending social protection to the informal economy, including through leveraging digital technologies’ shed light on the concerning gaps in social protection coverage in Africa, where only 19 per cent of the population has access to social protection, according to the latest ILO’s World Social Protection Report. The session, which explored the root causes of coverage deficits and showcased innovative approaches to address those gaps, was organized with the financial support of the Ministry of Labour, Employment and Integration (DAEI) of France, through the project “Accés universel à la protection sociale et à la santé et sécurité au travail par la transition vers le travail formel”.
Victoire Umuhire, Social Protection Specialist from the ILO Regional Office for Africa, highlighted the region’s enabling political and legal instruments adopted to support the extension of social protection to workers in the informal economy, which can further translate into effort for promoting formalization. She also emphasized the ILO’s role in collaborating with institutions across Africa for the implementation of such measures for different categories of workers in the informal economy.
Zambia showcased efforts to integrate vulnerable populations registered in social assistance programmes into the social health insurance scheme, established in 2019. With the ILO’s technical support to the National Health Insurance Management Authority (NHIMA), including an actuarial valuation to examine the financial sustainability of the scheme, the initiative started extending coverage to this group and exploring financing options to progressively withdraw from the support of the Global Fund to Fight AIDS, Tuberculosis and Malaria.
On the other hand, Morocco presented a comprehensive national plan aimed at extending social protection to workers in the informal economy through sustainable solutions focused on human capital investment. Centred on the universalization of social protection, the initiative focused on four pillars: education, infrastructure, health and employment, aiming to foster economic and social benefits while creating conditions conducive to decent work. A key aspect is the integration of independent workers and entrepreneurs in social protection schemes, with plans to gradually expand coverage to other categories of the informal economy. The plan also prioritizes increased access to social health protection for all and extending social protection coverage to vulnerable populations, underscoring its commitment to social inclusion.
Cote d’Ivoire has launched two schemes to extend social protection to workers in the informal economy: a universal social health protection for all, through both contributory and non-contributory approaches, and a contributory social protection scheme for independent workers, offering benefits for old-age, maternity, work injury and occupational diseases.
Finally, Cabo Verde introduced the REMPE scheme, designed to simplify administrative procedures and reduce barriers to formalization for certain categories of workers and small enterprises. REMPE introduces a reduced unified special tax set at 4 per cent on the volume of business, to simplify the collection of the traditional taxes and social security contributions. This approach promotes business registration, social security, productivity and formalization. The initiative complements other programmes aiming at eradicating extreme poverty, such as universal pension for vulnerable populations, mandatory social security (old age, maternity, health) and complementary social protection schemes.
This session was concluded with key takeaways from speakers, who emphasized:
- The importance of advocacy and awareness raising on social protection for workers in the informal economy.
- The need for comprehensive, adequate and universal social protection tailored to each country-specific context and responsive to the specific needs of workers in the informal economy.
- The strengthening of institutions and fostering of social dialogue for inclusive, equitable and sustainable financing, and successful contribution collection systems. This should be complemented by promoting a culture of contribution and building trust in institutions to ensure social security participation and sustainability, and formalisation of the economy.
- Regular monitoring and evaluation of the strategies for implementation to ensure effectiveness.
For more information, please visit the event page