Zimbabwe approves policies to formalise informal sector

The Zimbabwean government has approved two major policy frameworks aimed at strengthening employment creation and integrating informal businesses into the formal economy.

The National Formalisation Strategy and the National Employment Policy (2026–2030) were adopted by Cabinet following a presentation by Vice President Kembo Mohadi. The announcement was made by Information Minister Zhemu Soda during a post-Cabinet briefing.

The National Formalisation Strategy is designed to bring informal workers and enterprises into the formal economy by improving access to social protection, labour rights, and financial services. It also seeks to tackle key challenges such as unsafe working conditions, low incomes, and limited access to funding. The policy outlines measures to simplify business registration, remove regulatory barriers, and support the growth of small and medium enterprises.

According to Minister Soda, the strategy is built around eight priorities, including enterprise development, access to markets and finance, regulatory reforms, and targeted support for vulnerable groups such as youth, women, persons with disabilities, and liberation war veterans.

Complementing this, the National Employment Policy (2026–2030) updates the country's 2010 framework to reflect current economic realities, including the effects of the COVID-19 pandemic. It focuses on aligning education and skills training with labour market demands, reducing youth unemployment, and addressing skills gaps.

The policy sets out ten objectives, including strengthening labour rights, promoting inclusive economic growth, improving employment services, and ensuring safe working environments. It also highlights rural employment initiatives such as Village Business Units.

Both policies will be supported through coordinated funding from government, private sector stakeholders, and development partners, alongside a monitoring and evaluation system to track implementation.

Authorities say the frameworks are expected to enhance social protection, promote sustainable job creation, and contribute to long-term economic stability.