The Government has stepped up efforts to bring informal businesses and workers into the formal economy, with the government saying the process should improve access to social protection, finance, markets and decent work.
Deputy Minister of Labour and Social Welfare Advocate Mercy Dinha said the transition to formality was central to the country’s pursuit of inclusive economic growth and Vision 2030.
Speaking at the 44th Employers Confederation of Zimbabwe (EMCOZ) Annual Congress in Nyanga, she said formalisation should not be viewed simply as a requirement for registration and compliance.
“Formalisation must go beyond registration and compliance. It must respond to the realities of workers and enterprises by promoting decent working conditions, strengthening labour and social protection, improving incomes and skills, and expanding access to finance, markets, technology, and decent workspaces,” she said.
The government developed the National Formalisation Strategy following a Cabinet directive, with the policy approved by Cabinet on 7 April 2026.
Advocate Dinha said the strategy provides for a voluntary, progressive and supported transition of informal economic activities into the formal economy, with decent work at its centre.
She said formalisation should create an environment in which workers can earn a livelihood with dignity while businesses are able to grow, innovate and create jobs.
“Formalisation is not an end in itself. It is a pathway towards an economy of opportunity and shared prosperity,” she said.
Zimbabwe has a large informal economy, with many people earning livelihoods through small businesses, trading and other activities outside the formal employment and business sectors.
Advocate Dinha said bringing these activities into the formal economy could strengthen productivity, investment, employment creation and social protection.
“When workers are protected, skilled, and productive, enterprises are better positioned to grow and create sustainable employment. When enterprises thrive, they contribute to productivity, investment, job creation, and national development,” she said.
The deputy minister also linked the formalisation drive to the country’s broader social contract between government, employers and workers.
She said a sustainable social contract should balance the needs of businesses to operate in a predictable environment with workers’ demands for decent wages, safe workplaces, fair treatment and social protection.
“Businesses need confidence and certainty to invest, expand, and innovate, while workers, as the foundation of our productive economy, need decent conditions, protection, and opportunities to improve their livelihoods,” Advocate Dinha said.
She called for stronger cooperation between government, business, labour and other stakeholders, arguing that no single group could achieve the transition to formality on its own.
The minister said government would continue reviewing and streamlining regulatory and legal frameworks to make business registration more accessible and reduce unnecessary compliance burdens.
Employers, she added, should promote decent labour standards, workplace safety and productivity while helping smaller enterprises and informal businesses become part of formal supply chains.
Academia, civil society, professional bodies and communities also have a role to play through research, innovation and providing evidence on the challenges facing workers and businesses.
Advocate Dinha said the government remained committed to tripartism and social dialogue as tools for building a productive and resilient economy.
“Our message is therefore clear. Government must create the enabling environment; employers must create opportunities; workers must remain at the centre of our development efforts; and all stakeholders must contribute meaningfully to the national dialogue,” she said.
The EMCOZ congress was held under the theme “Towards Inclusive Growth: Transition to Formality”, which Ms Dinha said was closely aligned with Zimbabwe’s development ambitions.
She urged delegates to move beyond resolutions and ensure that commitments made through social dialogue result in practical outcomes.
“We must transform informal potential into formal opportunity and build an economy where workers are protected and productive, enterprises are empowered to grow and create jobs, investment is encouraged, and every Zimbabwean has a meaningful opportunity to participate in and benefit from national development,” she said.
