23 Nov 2015

The informal sector has been described as a vital organ that caters for the livelihood of many families across the country, and Parliament has been urged to enact legislation to protect this component of the economy.

Presenting a motion for a policy to protect the interests of the informal sector on Friday, Francistown West MP, Mr Ignatius Moswaane said the government needs to nurture and safeguard the interests of informal traders.

“Botswana has in the past few years acknowledged the importance of the informal sector as alluded to by various National Development Plans (NDPs).  However, little has been done in terms of putting concrete initiatives aimed at fostering growth,” he said.

Mr Moswaane urged fellow MPs to adopt an all inclusive policy that would address the challenges faced by informal traders.“Nurturing the sector will require the adoption of a comprehensive informal sector policy defining the role of the different stakeholders such as regulatory authorities, government, informal traders and financial institutions in addressing the challenges faced by informal businesses,” he said.

The fact that the mainstream economy faces challenges accentuates the importance of the informal sector, Mr Moswaane said.

“Rising unemployment in the country and the apparent failure of the formal economy to generate employment for the ever increasing urban and youth population, many have been left with little choice but to look for innovative ways to make ends meet,” he said.

Vice President and Moshupa-Manyana MP, Mr Mokgweetsi Masisi applauded MP Moswaane, saying although the details of the policy he seeks were not clear to all, legislators should pay attention to the underlying intentions of the motion.

“The informal sector has come to be globally recognised for its role, but we are seeing those involved in it frequently being moved from pillar to post.

A policy once promulgated would inform town planners and other stakeholders in planning, for example for space allocation and the state in terms of taxation,” Mr Masisi said.Though in support, the Minister of Health and Sefhare-Ramokgonami MP, Ms Dorcas Makgato said Parliament should exercise caution and not formalise or overregulate the informal sector thereby creating barriers in the process.

The MP for Gaborone Bonnington South, Mr Ndaba Gaolathe said there was a need for linkages between the formal economy and the informal. He said financial institutions were key stakeholders who could assist informal traders.

Francistown South MP, Mr Wynter Mmolotsi said a similar motion was presented and adopted by the 10th Parliament in 2011, imploring the government to “include in its small, medium and micro enterprises (SMME) policy, the protection of the informal sector.”Molepolole South MP, Dr Tlamelo Mmatli said Parliament was “flogging a dead horse” by debating the motion since a similar one had been passed before. Ends