The country has received more than US$16 billion in remittances from its nearly 4 million diaspora community over the last eight years which has helped ease poverty, and spur economic growth, the Minister of Public Service, Labour and Social Welfare, July Moyo has said.
In a report on the state of social services and poverty eradication to the ZANU (PF) 21st National People’s Conference held at the Zimbabwe International Exhibition Centre in Bulawayo, Moyo said Zimbabwe received US$16.3 billion in diaspora remittances between 2015 and 2023.
“Zimbabwe like any other country, is experiencing labour migration. Among various countries of destinations, it is estimated that 3 million Zimbabweans are in South Africa, 400 000 in the United Kingdom, 200 000 in Botswana and 20 000 in Australia,” he said.
“The government acknowledges the critical role of the diaspora community in reducing poverty, supporting entrepreneurship, and driving economic growth in the country through remittances. Remittances have contributed a considerable portion of foreign currency receipts totalling US$16.3 billion between 2015 and 2023.”
He said South Africa contributes the highest at 47 percent of the total amount, the United Kingdom contributes 23 percent, United States 11 percent, Australia six percent, Botswana four percent and Canada contributes three percent.
Moyo, who chairs the party’s social protection pillar, said the government has noted labour law violations across all sectors of the economy including health and safety rules, personal protective equipment and wages not complying with collective bargaining agreements.
The Responsible Mining Audit launched last year uncovered some of these violations in 400 mines necessitating the need for united vigilance using the whole-of-government and whole-of society approach to bring the violations to an end.
Moyo said the government is making strides in developing the labour market information system that seeks to link job seekers to available job opportunities obtaining in the economy and providing real-time data on aggregate labour supply and demand.
The information, which will be available online, is designed to guide evidence-based policy formulation. The illegal economic sanctions imposed on Zimbabwe, has led to economic constriction resulting in the shrinkage of the once vibrant formal sector.
Consequently, a number of formal establishments have transitioned to the micro, small and medium enterprises and efforts to expand social security coverage have focused on developing a customised social security scheme,” he said.
“These enterprises have employed a significant number of workers, thereby contributing to SDG 8 on decent work and economic growth as well as SDG 1 on no poverty,” said Moyo.
“While, often perceived as unregulated, unlicensed and unregistered, much of what is considered informal actually involves registered entities who may not be in compliance with some elements of decent work. For example, licensed urban vendors, registered artisanal miners, registered cross-border business people, and registered tuckshop owners and retailers are registered by local authorities and often given work spaces to operate from. Government should now ensure through the regulatory frame compliance of labour laws, tax laws and social protection policies.”
Moyo said the government needs to strengthen community-based care for the elderly through supporting economic empowerment initiatives for households looking after older persons.
A non-contributory pension scheme for older persons is in the pipeline through the crafting of an Older Persons’ Policy which is being finalised while post working life shocks need to be mitigated.
He said presently the country has the National Social Security Authority (NSSA) available to workers while individuals have their own personal insurance arrangements and those in occupations have enterprise-based pensions.
Within the public sector, there are sector specific pensions such as the public services, state-owned enterprise and local authorities pensions.
However, the pension architecture needs to be interrogated in view of the increasing life expectancy while the government needs to effectively deal with the legacy of the erosion of the value of pensions arising from currency reforms.
“Government needs to establish a contributory unemployment benefit scheme to cater for loss of employment in situations of pandemics such as the COVID 19 and other unforeseen shocks that include disasters which may come in various forms,” said Moyo.
He said his report showed that Zimbabwe had a strong foundation for social protection which assured the provision of food and services to members of society from birth to death but Vision 2030 requires that the country uplift the material standards of life for the poor through social safety nets, employment promotion and creation and decent work and sustainable livelihoods.
“This requires adequate and consistent funding from the Treasury complimented by development partners,” said Moyo.
“Delayed disbursement of resources by Treasury and inadequate budgets lead to a high number of targeted programme beneficiaries not receiving assistance and the government accruing arrears back dating to 2023.”
New Ziana