Abstract
The high incidence of informality in Zimbabwe implies that a large proportion of the adult population does not have access to contributory pension schemes during their working lives, rendering them ineligible for old-age pensions. The primary goal of this research is to develop a pragmatic informal retail sector noncontributory old-age pension scheme in Zimbabwe. The study drew empirical evidence from a comprehensive countrywide study using mixed-methods research. The study concluded that several factors, including the respondents' demographic characteristics, are important considerations in developing an effective non-contributory old-age informal sector pension scheme. Based on the study's findings, the study proposes alternative non-contributory old-age informal sector pension schemes, such as financing the non-contributory old-age social pension, determining the monthly amount of a non-contributory old-age pension, and gradually covering a non-contributory old-age pension gap. The study recommends the introduction of a non-contributory informal sector retirement pension fully funded by the government.
Keywords: retail informal sector old-age pension scheme; social security; informal sector; Zimbabwe.
References
REFERENCES
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Beknazarov, Z., & Rustamov, D. (2021). A review of existing pension services in developed and developing countries. In E3S Web of Conferences (Vol. 258, p. 05040). EDP Sciences.
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Guven, M. (2019). Extending pension coverage to the informal sector in Africa.
Guven, M., Jain, H., & Joubert, C. (2021). Social Protection for the Informal Economy.
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Magidi, M., & Mahiya, I. T. (2021). Rethinking training: The role of the informal sector in skills acquisition and development in Zimbabwe. Development Southern Africa, 38(4), 509-523.
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PICES (2017). Poverty, Income, Consumption and Expenditure Survey 2017
Perotti, V., & Sánchez Puerta, M. L. (2009). Personal Opinions about the Social Security System and Informal Employment: Evidence from Bulgaria.
Saul, B. (2016). Introduction: The Drafting of the International Covenant on Economic, Social and Cultural Rights, 1948-1966. THE INTERNATIONAL COVENANT ON ECONOMIC, SOCIAL AND CULTURAL RIGHTS: TRAVAUX PREPARATOIRES, B. Saul, ed, Oxford University Press, UK.
Sharma, D., Alwang, J. R., Chingozha, T., Hoy, C., Kurasha, F., & Paez Rodas, A. (2022). Reversing the Tide: Reducing Poverty and Boosting Resilience in Zimbabwe.Winkler, H., Ruppert Bulmer, E., & Mote, H. (2017). Expanding social insurance coverage to informal workers. World Bank.
WIEGO (2022). Income Security for Older Workers
Winkler, H., Ruppert Bulmer, E., & Mote, H. (2017). Expanding social insurance coverage to informal workers. World Bank.
Wujczyk, M., & Egorov, A. (2016). The Right to Social Security in the Constitutions of the World: Broadening the Moral and Legal Space for Social Justice, ILO Global Study, Volume 1: Europe. ILO, Geneva.
ZimStats (2022). Households Welfare Monitoring in Zimbabwe
ZimStats (2017). Zimbabwe Poverty Report 2017.
Adamek, M. E., Gebremariam Kotecho, M., Chane, S., & Gebeyaw, G. (2022). Challenges and assets of older adults in Sub-Saharan Africa: Perspectives of gerontology scholars. Journal of Aging & Social Policy, 34(1), 108-126.
Beknazarov, Z., & Rustamov, D. (2021). A review of existing pension services in developed and developing countries. In E3S Web of Conferences (Vol. 258, p. 05040). EDP Sciences.
Dhemba, J., & Dhemba, B. (2015). Ageing and care of older persons in Southern Africa: Lesotho and Zimbabwe compared. Social Work & Society, 13(2).Holzmann, R. (2005). Old-age income support in the 21st century: An international perspective on pension systems and reform. World Bank Publications.
Dube, G., & Casale, D. (2019). Informal sector taxes and equity: Evidence from presumptive taxation in Zimbabwe. Development Policy Review, 37(1), 47-66.
Dzawanda, B., Matsa, M., & Nicolau, M. (2021). Poverty on the rise: the impact of the COVID‐19 lockdown on the informal sector of gweru, zimbabwe. International Social Science Journal, 71(S1), 81-96.
Guven, M. U., & Leite, P. G. (2016). Benefits and costs of social pensions in Sub-Saharan Africa. World Bank.
Guven, M. (2019). Extending pension coverage to the informal sector in Africa.
Guven, M., Jain, H., & Joubert, C. (2021). Social Protection for the Informal Economy.
Hahs, J. (2022). The ILO Beyond Philadelphia. In International Impacts on Social Policy: Short Histories in Global Perspective (pp. 171-188). Cham: Springer International Publishing
HelpAge Zimbabwe (2016) Annual Reports 2015/2016
HelpAge Zimbabwe (2021). Annual Reports 2020/2021. Time to Stand with Millions of our older Persons.
Holzmann, R., Koettl, J., & Chernetsky, T. (2005). Portability regimes of pension and health care benefits for international migrants: an analysis of issues and good practices (Vol. 23). Geneva: Global Commission on International Migration.
Holzmann Robert, Hinz Richard, Von Gersdorff Hermann and Gill Indermit (2005). Old Age Income Support in the Twenty-First Century: An International Perspective on Pension Systems and Reform.
ILO (2020). Ratifications of C102 – social security (minimum standards) convention, 1952 (No. 102). Geneva: International Labour Organization. www.ilo.org/dyn/normlex/en/f?p=1000:11300:0::NO: 11300:P11300_INSTRUMENT_ID:312247 (14 April).
ILO (2021g) Policy Brief: Old Age Pension Models worldwide from an ILO Perspective. What Workers Organizations Need to Know
Kamete, A. Y. (2020). Neither friend nor enemy: Planning, ambivalence and the invalidation of urban informality in Zimbabwe. Urban Studies, 57(5), 927-943.
Kaseke, E., 2017. Social insurance systems in South Africa and Zimbabwe: A comparative analysis. Social Development Issues, 39(1), pp.41-53.
Magidi, M., & Mahiya, I. T. (2021). Rethinking training: The role of the informal sector in skills acquisition and development in Zimbabwe. Development Southern Africa, 38(4), 509-523.
Mashapure, R., Hamunakwadi, P., Chavunduka, D., & Chikazhe, L. (2021). Socio-economic implications of Covid19 pandemic to women entrepreneurs: a case of the informal sector in Zimbabwe. Business Management and Strategy, 12(1), 1-15.
Mining Industry Pension Fund (MIPF) (2021). Annual Report as at December 2021
Moussié, R., & Alfers, L. (2022). Pandemic, informality and women’s work: Redefining social protection priorities at WIEGO. Global Social Policy, 22(1), 190-195.
Mushunje, M. T., & Kaseke, E. (2018). Indigenous social security systems in Zimbabwe: Strengths, challenges and prospects. Indigenous Social Security Systems in Southern and West Africa, 105.
Mukura, E. (2019). Extending Social Security Protection to the Domestic Workers in Zimbabwe (Doctoral dissertation, University of the Witwatersrand, Faculty of Commerce, Law and Management).
Mumtaz, Z., & Whiteford, P. (2021). Comparing formal and informal social protection: a case study exploring the usefulness of informal social protection in Pakistan. Journal of International and Comparative Social Policy, 37(3), 243-272.
National Social Security Authority (2022), Financial Report. Published on 11 July 2022
National Social Security Authority (2021). Financial Report.2021
Nhapi, T. G. (2021). Examining the robustness of Zimbabwean social protection mechanisms in the context of Corona Virus Disease 2019 (COVID-19). African Journal of Social Work, 11(4), 240-249.
Nhapi, T. (2022). An exploration of the domains of the inequality trajectory in Zimbabwe. Contemporary Social Science, 17(2), 84-98.
Ncube, T., Murray, U., & Dennehy, D. (2023). Digitalising Social Protection Systems for Achieving the Sustainable Development Goals: Insights from Zimbabwe. Communications of the Association for Information Systems, 53(1), 11.
Ortiz, I., Chowdhury, A., Durán-Valverde, F., Muzaffar, T., & Urban, S. (2019). Fiscal space for social protection: A handbook for assessing financing options. International Labour Organization.
PICES (2017). Poverty, Income, Consumption and Expenditure Survey 2017
Perotti, V., & Sánchez Puerta, M. L. (2009). Personal Opinions about the Social Security System and Informal Employment: Evidence from Bulgaria.
Saul, B. (2016). Introduction: The Drafting of the International Covenant on Economic, Social and Cultural Rights, 1948-1966. THE INTERNATIONAL COVENANT ON ECONOMIC, SOCIAL AND CULTURAL RIGHTS: TRAVAUX PREPARATOIRES, B. Saul, ed, Oxford University Press, UK.
Sharma, D., Alwang, J. R., Chingozha, T., Hoy, C., Kurasha, F., & Paez Rodas, A. (2022). Reversing the Tide: Reducing Poverty and Boosting Resilience in Zimbabwe.Winkler, H., Ruppert Bulmer, E., & Mote, H. (2017). Expanding social insurance coverage to informal workers. World Bank.
WIEGO (2022). Income Security for Older Workers
Winkler, H., Ruppert Bulmer, E., & Mote, H. (2017). Expanding social insurance coverage to informal workers. World Bank.
Wujczyk, M., & Egorov, A. (2016). The Right to Social Security in the Constitutions of the World: Broadening the Moral and Legal Space for Social Justice, ILO Global Study, Volume 1: Europe. ILO, Geneva.
ZimStats (2022). Households Welfare Monitoring in Zimbabwe
ZimStats (2017). Zimbabwe Poverty Report 2017.