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Time for a new dealSocial dialogue and the informal

economy in Zambia

War on WantDevelopment House56-64 Leonard StreetLondon EC2A 4LTT: +44 (0)20 7549 0555 F: +44 (0)20 7549 0556E: [email protected]: www.waronwant.org

Company limited by guarantee registration number 629916Charity number 208724

War on Want fights poverty indeveloping countries in partnershipand solidarity with people affected byglobalisation.We campaign forworkers' rights and against the rootcauses of global poverty, inequalityand injustice.

Overall Project Coordinator and SupervisorGuillermo Rogel, Director of International Programmes,War on Want

Research Project Coordinator and EditorWendy Willems, Research Officer,War on Want

Researcher in ZambiaNachilala Nkombo

Published in July 2007

All photos by Paul Weinberg (http://www.paulweinberg.co.za)

ISBN 978-0-905990-01-9

With the financial support of theEuropean Union (EuropAid)

Cover photo: Informal market in Lusaka, Zambia. Back page photos:Traders in Soweto and Kamwala Market in Lusaka.

List of acronyms .................................................................................................................................................... 2

Foreword..................................................................................................................................................................... 3

1. Decent work, social dialogue and the informal economy ................................................... 4

2. The informal economy in Zambia: a background ..................................................................... 6

3. Working in the informal economy in Zambia ............................................................................. 7Street traders........................................................................................................................................................... 7Market vendors ....................................................................................................................................................... 7Summary ................................................................................................................................................................... 9

4. Social dialogue in the informal economy in Zambia............................................................. 10The role of the Tripartite Consultative Labour Council in social dialogue ............................................ 10Social dialogue in the consultation around the PRSP .................................................................................. 12Social dialogue in the informal economy: three case studies ..................................................................... 15

5. Conclusion ......................................................................................................................................................... 20

Recommendations to stakeholders........................................................................................................ 21

Bibliography ........................................................................................................................................................... 22

Notes .......................................................................................................................................................................... 23

Table of contents

1

AZIEA Alliance for Zambia Informal Economy AssociationsCBTA Cross Border Trader AssociationCISEP Centre for Informal Sector Employment PromotionCOMESA Common Market for Eastern and Southern AfricaCSPR Civil Society for Poverty ReductionFFTUZ Federation of Free Trade Unions of ZambiaHDI Human Development IndexHIPC Heavily Indebted Poor CountryILO International Labour OrganisationLCC Lusaka City CouncilLITA Lusaka Informal Traders AssociationMASBAZ Marketeers and Small Business Association of ZambiaMCTI Ministry of Commerce,Trade and IndustryMDG Millennium Development GoalMFED Ministry for Finance and Economic Development NGOCC Non-Governmental Organisations Coordination CommitteeMMD Movement for Multiparty DemocracyNSCB National Savings and Credit BankPRSP Poverty Reduction Strategy PaperSMDC Soweto Market Development CommitteeSOMAS Soweto Marketeers’ AssociationTCLC Tripartite Consultative Labour CouncilTEVETA Technical Education,Vocational and Entrepreneurship Training AuthorityUNDP United National Development ProgrammeUNIP United National Independence PartyYMCA Young Men’s Christian AssociationZANACO Zambia National Commercial BankZANAMA Zambia National Marketeers’ AssociationZCCM Zambia Consolidated Copper MinesZCTU Zambia Congress of Trade UnionsZMK Zambian kwachasZRA Zambia Revenue Authority

List of acronyms

2

As part of its ongoing work on the informaleconomy,War on Want is proud to present Timefor a New Deal: Social dialogue and the informaleconomy in Zambia.This report is a componentof a research project coordinated by Solidar aspart of the Decent Work, Decent Life campaign.Solidar is an international alliance of social andeconomic justice non-governmentalorganisations (NGOs) working in developmentand humanitarian aid, social policy, social serviceprovision and life-long learning.

The Decent Work, Decent Life campaign is aninternational campaign led by the InternationalTrade Union Confederation, the GlobalProgressive Forum, Social Alert, the EuropeanTrade Union Confederation and Solidar.

War on Want has been at the forefront ofhighlighting decent work opportunities forworkers in the informal economy worldwide. Inits informal economy programme,War on Want’sProgrammes Department has been closelyworking with different informal economyorganisations such as the Alliance for ZambiaInformal Economy Associations (AZIEA), theMalawi Union for the Informal Sector (MUFIS)and ASSOTSI, a market vendor organisation fromMozambique.

This report assesses the current state of socialdialogue in the informal economy in Zambia.Webelieve that with the growing informalisation oflabour and the changing nature of work in thecontext of globalisation, new forms of socialdialogue and collective bargaining need to bedeveloped that can incorporate new types ofworkers such as street traders and marketvendors.

Zambia is a case in point.With the overwhelmingmajority of Zambia’s labour force (83%) workingin the informal economy, there is a need for

these workers to have a voice in national affairs,just like formal workers have through tradeunions in collective bargaining fora.

We would particularly like to thank NachilalaNkombo who has done a brilliant job carryingout the main research in Kitwe and Lusaka thatforms the basis of this report.We would also liketo thank Paul Weinberg for his excellentphotographic documentation of the lives ofinformal economy workers in Zambia.We aregrateful to Solidar for its assistance throughoutthis research project as well as to the EuropeanUnion for their financial support.

Special thanks are due to our partnerorganisations,AZIEA and the Workers’ EducationAssociation Zambia (WEAZ), and in particular toMike Chungu (WEAZ),Victor Phiri (WEAZ),Lameck Kashiwa (AZIEA) and Bernard Tembo(AZIEA) for their assistance in facilitating thisresearch project.We are also grateful to allrespondents who devoted their time tocontributing to this project, particularlyrepresentatives of local and central governmentin Zambia, the Zambia Congress of Trade Unions(ZCTU), the Lusaka Informal Traders’ Association(LITA), the Cross Border Traders’ Association(CBTA) and the Zambia National Marketeers’Association (ZANAMA).

We hope you will enjoy reading this report andmore importantly that it will contribute to aNew Deal and formalised and institutionalisedsocial dialogue opportunities for informaleconomy workers in Zambia and elsewhere.

Louise RichardsChief Executive,War on Want

Foreword

T I M E F O R A N E W D E A L 3

4 S O C I A L D I A L O G U E A N D T H E I N F O R M A L E C O N O M Y I N Z A M B I A

The Decent Work agenda was initiated by theInternational Labour Organisation (ILO) in 1999during the 87th Session of its AnnualConference, and included four strategicobjectives: fundamental principles and rights atwork, employment promotion, social protectionagainst vulnerabilities and contingencies in workand promotion of social dialogue.1 SecuringDecent Work worldwide became the primarydriving force of the organisation and it not onlyincluded regular waged employees but alsoemphasised workers in the informal economy,e.g. unregulated wageworkers, the self-employedand home workers.The 90th Session of the ILOAnnual Conference in 2002 focused specificallyon Decent Work and the Informal Economy. Duringthe conference, the ILO recognised that theconcept of the ‘informal sector’ was no longerconsidered adequate, as there was no separate

sector in the sense of aspecific industry group oreconomic activity.2 The ILOsuggested the term ‘informaleconomy’ was more applicableas it encompassed theheterogeneous group ofworkers in both informal workarrangements in formalbusinesses as well as in

informal enterprises.Whereas the concept of the‘informal sector’ implied the existence of aseparate sector, the concept of informaleconomy encompassed any type of informalemployment relationship, whether in formal orinformal enterprises.

During the 2002 ILO conference, there wasspecial recognition that one of the essentialsecurities denied to informal workers was“representation security”.3 As stated in the report:

Everywhere in the world, people in theinformal economy are excluded from or

under-represented in social dialogueinstitutions and processes. In order to secureand exercise an independent voice at work,workers and employers need representationalsecurity. Representational security at work isbased on the freedom of workers andemployers to form and join organisations oftheir own choosing without fear of reprisalor intimidation. […] Freedom of associationand the right to organise constitute afundamental human right. It is also a keyenabling right. If workers or employers aredenied the possibility of organising, they willnot have access to a range of other rights atwork.4

Promotion of social dialogue, and ensuringrepresentational security for informal workers, isa crucial strategy towards achievement ofDecent Work opportunities, and “it is the meansby which rights are defended, employmentpromoted and work secured”.5 Social dialogue isdefined by the ILO as:

[…] all types of negotiation, consultation orsimply exchange of information between, oramong, representatives of governments,employers and workers, on issues of commoninterest relating to economic and socialpolicy. It can exist as a tripartite process, withthe government as an official party to thedialogue or it may consist of bipartiterelations only between labour andmanagement (or trade unions and employers’organisations), with or without indirectgovernment involvement. Concertation canbe informal or institutionalised, and often it isa combination of the two. It can take place atthe national, regional or at enterprise level. Itcan be inter-professional, sectoral or acombination of all of these.The main goal ofsocial dialogue itself is to promote consensusbuilding and democratic involvement among

1. Decent work, social dialogue andthe informal economy

“Everywhere in the world,people in the informaleconomy are excluded fromor unrepresented in socialdialogue institutions andprocesses”International LabourOrganisation (ILO)

the main stakeholders in the world of work.Successful social dialogue structures andprocesses have the potential to resolveimportant economic and social issues,encourage good governance, advance socialand industrial peace and stability and boosteconomic progress.6

Social dialogue in the traditional sense hasgenerally mainly involved formal workers.Withthe informalisation of labour and changing natureof work in the context of globalisation, however,new forms of social dialogue and collectivebargaining need to be developed which canincorporate new types of workers, e.g. marketvendors and street traders who are notrepresented in established collective bargainingsystems. Often, it is argued that collective

bargaining institutions do not apply to theinformal economy as there is no employer tonegotiate with.7 However, other negotiatingpartners have an impact on working conditionsin the informal economy, such as localgovernment which is often responsible for theimposition of fees and levies for rent of stalls inmarkets.

The overall objectives of this research projectare:• to assess the current state of social dialogue

in the informal economy in Zambia;• to identify factors which contribute to/inhibit

effectiveness of street trader and/or marketvendor organisations in influencing local andcentral government policies in Zambia.


Trader in informal market in Lusaka


In Zambia, structural adjustment policies, whichbegan to be implemented in the mid-1980s,sharply reduced the number of people employedin the formal sector.The opening up of theZambian economy to international competitionhad a disastrous effect on local industries as theywere not able to compete. Many manufacturingcompanies were forced to close andemployment in manufacturing fell from 75,400 in1991 to 43,320 in 1998.8 However, tradeliberalisation also gave rise to investment bymultinational corporations headquartered inSouth Africa. Zambia has sometimes beendescribed as a huge supermarket for SouthAfrican capital.

The privatisation of state-owned enterprisesparticularly hit employment in Zambia’s miningindustry which is located in the denselypopulated Copperbelt Province.As part of thegovernment’s privatisation exercise, the state-owned Zambia Consolidated Copper Mines(ZCCM) conglomerate was split up into severalsmaller companies.9 New investors acquired themining assets and laid off many workers in orderto operate the mines with lower costs. In1991/92, employment in the ZCCM mines stoodat 56,582. It declined to 31,033 in 1997/98 and

currently is estimated to be around 22,000.10

Parallel to privatisation was the public sectorreform programme which the government wasimplementing in the name of making the publicservice ‘lean’, ‘efficient’, and ‘affordable’.Thecumulative effect of these policy measures hasbeen to create massive unemployment throughprocesses euphemistically described as‘retrenchments’, ‘redundancies’, ‘lay-offs’ or ‘right-sizing the public service’. Public sector reformshave reduced employment from an estimated150,000 in 1992 to 120,000 in 2004. However,the government is determined to reduce thisnumber further to 80,000.11

The mining, manufacturing and public sectorsconstituted a large part of Zambia’s small formalsector.With the reduction of employment inthese sectors, Zambians were forced to survivein the rapidly growing informal economy.Asurvey on living conditions in Zambia that wascarried out in 2004 found that 83 percent of allemployed persons in Zambia were engaged inthe informal economy (both agricultural andnon-agricultural employment).12 Informalemployment was more common among females(91 percent) than males (76 percent).13 Almost54 percent of those households that reported tooperate a non-farm informal enterprise wereinvolved in trading.14 Although it is hard to giveexact figures on the share of the informaleconomy as part of the total economy, theWorld Bank estimated that in Zambia theinformal economy contributed 48.9 percenttowards GNP in 1999/2000.15

2. The informal economy inZambia: a background

Furniture seller in Chisokone Market, Kitwe

After it has become clear in the previous sectionthat the majority of Zambians now make a livingin the informal economy, it is important to assessthe working conditions that informal workersface.This section focuses on the situation ofmarket vendors and street traders in Zambia.Research was carried out in mid-2006 in variousmarkets and street vending areas in Kitwe:Chisokone Market (estimated 9,000 traders), andin Lusaka: Soweto market (estimated 16,000traders), Kamwala market, COMESA market(estimated 5,000 traders) and Cairo Road streetvending area.

Street tradersThe majority of the respondents noted the lackof legal protection and exposure to a variety ofenvironmental risks as being the two main

challenges whichstreet traders face.The reality ofoperating outsidethe legal framework

of doing business negatively affects the stabilityand prospect of growth of their businesses asthey are constantly running away from the law.According to a Lusaka street trader,“harassmentis the order of the day”. Since streets are notdesigned for trading, these traders are alsosusceptible to a range of environmental risks.They lack the basic facilities such as publicconveniences and shelter to protect their goodsand themselves from the rain and the sun.Thissituation makes them prone to illness.They arealso most likely to be hit by vehicles during thecourse of doing business. Other challengesidentified are the low nature of their investmentsto ensure meaningful income generation sincethey do not have access to loans from financialinstitutions. In addition, most markets wherestreet traders are pushed to are highlycongested, have no facilities and the trade ishighly competitive.

Market vendors Poor maintenance and management of markets,insufficient trading space, poor marketinfrastructure and poor security are the mainchallenges identified by the majority of marketvendors interviewed in this research project.

Poor maintenance and management of markets Most respondents indicated that the marketsthey trade in are poorly serviced and manageddespite market vendors regularly paying marketlevies to the local authorities. Most tradersinterviewed noted that facilities such asprovision of water, shelter, toilets, cleaning, andsecurity remain critical problems in the markets.

One of the key factors that have been attributedto this state of affairs is the Market Act.This lawcurrently governs market management in Zambiabut dates back from the colonial era and has notchanged to suit the changed circumstances in themarkets.According to theKitwe City Council TownClerk, irrespective of the sizeof a market, each market is stillmanaged by one marketmaster.Another implication of

3. Working in the informaleconomy in Zambia

“Harassment is the order ofthe day”.Lusaka street trader

Provision of water, shelter,toilets, cleaning and securityremain critical problems inthe market

T I M E F O R A N E W D E A L 7T I M E F O R A N E W D E A L

Street trader in Lusaka

this old law is that it criminalises the majority ofmarket vendors as it severely limits the kinds ofitems to be sold in a market. In addition, mosttraders interviewed were of the view that thislaw does not ensure accountability of the localauthority to the traders on the levies they pay.Against this background, it is clear howinappropriate and inadequate this law is as itbuilds in an ongoing tension in the relationshipbetween the traders and the local authoritieswho are the law enforcers.

However, an official at the Ministry of LocalGovernment and Housing argued that poorservice provision in the markets is a result oftraders paying sub-economic rates. He felt thatpoor maintenance is not a feature of all markets.In Chisokone B market in Kitwe, the Council andtraders established a task force to audit the totalrevenue that local authorities collect in levies.Collections were compared and it appeared thatthe traders were collecting significantly largeramounts of levies than the Council.They thusfound that officers from the local authorities hadengaged in a practice of underdeclaring theircollections from the markets.This practice hasundisputedly robbed traders of service provision.

Another factor market vendors attributed topoor management of markets is the excessivepolitical party interference in the management ofmarkets. In some cases, political parties havebranches in the market and use these to demandextra fees from traders.The political branches inmarkets for the ruling Movement for MultipartyDemocracy (MMD) are sometimes sub-contracted to offer some services. For instance,in Lusaka’s Kamwala Market they have beenplaced in charge of toilets and security. In case ofproblems with sanitation and security, theCouncil refers the traders to the MMD office.The MMD office responds by saying they are notthe Council, resulting in traders not receiving anyrecourse on complaints launched for servicesnot provided.

In markets such as Kamwala the perception oftraders interviewed is that the abuses of MMDcadres in their market is tolerated and backed by

the Ministry of Local Government and Housingitself.According to them, at present,development information intended for allmarketeers is distributed via the MMD branchoffice instead of the Council office.As a result,information does not filter through to the restof the traders.Very often, traders only learnfrom traders in other markets aboutgovernment-intended changes in the area ofmarket management. Most local authoritiesinterviewed also complained of beingundermined by the presence of party politics inmarkets.This pattern was also noticed by sometraders, who identified it as “tendencies bycentral government to hijack Councilresponsibilities”.According to the Kitwe TownClerk, the local government system in Zambiahas not yet developed a market managementmodel that is self-sustaining, self-managing andself-regulating. Hence, the amount of problems inmarkets.Another major challenge identified bymost traders is that their elected officials,Councillors and Members of Parliament areusually not available to discuss the problems andissues emerging in the markets after they havebeen given the vote.

Insufficient trading space Most markets in Zambia were reported to behighly congested.According to the Ministry ofLocal Government and Housing and CityCouncil officials, the population of traders hasrapidly increased, consequently outstripping theavailable spaces and facilities in the markets.Some traders, due to congestion, have beenforced to trade outside designated markets.Thisleads to another challenge where people whoremain in the markets have to deal with highlycompetitive practices from those who selloutside the market who have the first contactwith customers.A majority of traders lamentedthat while the spaces in markets are small, thereare still a number of non-gazetted markets inZambia.Trading in non-gazetted markets has ledto insecurity for the traders. For example,traders in Kitwe’s Chisokone B market aretrading on a non-gazetted piece of land.Whilethey have been allowed to build semi-permanentstructures on the same piece of land, they have


no security of tenure as it is within the power ofthe local authority to ask them to vacate thearea.

Poor market infrastructure and securityBoth local government officials and traders havelamented the old and dilapidated marketinfrastructure countrywide.According to aMinistry of Local Government and Housingofficial, Chisokone Market in Kitwe for instancewas built in the 1930s and there has not beenany refurbishment of markets since the 1960 and1970s. Poor infrastructure has led tocompromises in the health and securitystandards present in the markets. It was notedby both local government officials and tradersthat most markets do not have facilities to storetheir goods after trading hours. One Kitwe CityCouncil official explained that three quarter oftraders in Chisokone B market have to keeptheir goods in the police camps, while somesleep with the goods at night in the markets.Thismeans that these marketeers have to preparefood in markets making them prone to fireoutbreaks. Most of the stalls are made out ofwood which makes the market extra vulnerableto fires. In some markets, there is no lighting

after dark. During the rainy season, vendorsoften become prone to water borne diseasesbecause of the poor drainage systems. Crossborder traders have unique challenges in thatthey are highly mobile and often lack access tocheap overnight accommodation. Hence, theyend up sleeping in bus stops and thereforeexposing themselves to rape and theaccompanied risks of HIV/AIDS. Sometimes,female cross border traders also accept liftsfrom truck drivers as this enables them totransport large amounts of goods but it alsomakes them vulnerable to HIV/AIDS ascompensation for transport can be demanded inthe form of sexual intercourse.

SummaryIt is clear that street traders and market vendorsin Zambia are working in highly precarious,insecure and often dangerous conditions. Streettraders felt threatened and stigmatised foroperating semi-legally. Market vendors, on theother hand, are working in overcrowded marketswith facilities that have not been properlymaintained and markets that are chaotic andcharacterised by mismanagement and corruption.


Market vendor in Chisokone Market in Kitwe

1 0 S O C I A L D I A L O G U E A N D T H E I N F O R M A L E C O N O M Y I N Z A M B I A

Piled up rubbish in congested market in Chisokone Market, Kitwe

T I M E F O R A N E W D E A L 1 1

While the previous section demonstrated theprecarious conditions under which Zambia’sinformal economy workers make their living, thissection discusses the extent to which informaleconomy organisations have managed to addressthis situation through social dialogue with localand central government. Promotion of socialdialogue offers various social partners with atool to address the consequences of particulareconomic policies. It provides them with a forumto engage in consultation with government.Thissection discusses the role of the TripartiteConsultative Labour Council (TCLC) in socialdialogue in Zambia, the consultation processaround the Poverty Reduction Strategy Paper(PRSP) and the experiences of three informaleconomy associations in their encounter withlocal and central government.

The role of the Tripartite ConsultativeLabour Council in social dialogueIn Zambia, an institutional framework for socialdialogue in the formal sector was introduced in1993 which formalised consultations amongsocial partners through the establishment of theTripartite Consultative Labour Council (TCLC).Already since 1964, soon after Zambia gainedindependence, regular tripartite consultationswere being held which culminated in theenactment of the Industrial Relations Act in1971.16 However, it was only in 1993 that theseconsultations were formalised.

The main role of the TCLC is “to advise theGovernment on all issues relating to labourmatters, manpower development and utilisationand any other matter referred to the Council bythe Government”.17 The TCLC consists of 21representatives of government, employers andemployees. It is not only the government that isinitiating issues to be discussed.The socialpartners are also able to bring up matters fordebate.According to Fashoyin (2002: 21-22):

[…] the TCLC has achieved much. It hasserved as the major forum for consultationand participation of the social partners inimportant national issues concerning thelabour market and the economy.Although itis generally seen as a consultative andadvisory body, conclusions andrecommendations agreed in the TCLC arefrom time to time represented to theCabinet for consideration and approval.Depending on the issue, recommendationsfrom the Council relating to labour lawreform or the ratification of an ILOConvention, are presented to Parliament forapproval.The parties appear satisfied thatgovernment decisions have in many cases, ifnot always, reflected their recommendations.

However, the body has a purely advisory roleand the government is not legally bound by thedecisions of the TCLC.Workers’ representativeshave argued in the past that the role of theTCLC should go beyond being that of an advisorand decisions made should be legally binding forall social partners involved in the consultations.18

According to Fashoyin (2002: 32),“the socialpartners continue to question the readiness orwillingness of the Government to consult onmany of the key policy issues, such asprivatisation and public service reform.Theyargue that the institutions are frequently used toget the social partners to rubber stamp what haspreviously been decided by the Government”.

The voice of the trade union movement in socialdialogue has been weakened over the pastdecades.This can be partly attributed to internaldivisions and fragmentation of the labourmovement. In order to conform to internationallabour standards, Zambia introduced theIndustrial and Labour Relations (Amendment)Act of 1997 which paved the way for theformation of more unions and union

4. Social dialogue in the informaleconomy in Zambia


federations.19 Previously, the law only allowedone union per industry and one unionfederation.The result of this legal amendmentwas the emergence of smaller trade unions.While there were 17 unions in 1991, the numberrose to 31 in 2002.20 It also resulted in theregistration in 1998 of a second federation body:the Federation of Free Trade Unions of Zambia(FFTUZ), which operated alongside the olderZambia Congress of Trade Unions (ZCTU).However, the ZCTU remains the largestfederation with about 90% of the total tradeunion membership base.21 The second reason forthe weakening of trade unions is their decreasedmembership.As a result of massiveretrenchments caused by economic liberalisation,privatisation and public sector reforms inZambia, trade union membership has seriouslydeclined in recent years.Whereas the ZCTUcounted 477,000 members in 1990, this haddecreased to 274,000 in 1995.22

Conscious of this decrease, the ZCTU decidedto amend its constitution in 1996 in order toaccommodate the growing number of workers inthe informal economy.23 In cooperation with theTechnical Education,Vocational andEntrepreneurship Training Authority (TEVETA),the ZCTU established the Centre for InformalSector Employment Promotion (CISEP) in1998.24 CISEP provides training in business andleadership skills to informal economy operators,many of whom were retrenched from jobs in themining sector or public sector.

In 2004, ZCTU also accepted the Alliance forZambia Informal Economy Associations (AZIEA)as an associate member.AZIEA was establishedin 2001 as an umbrella body of thirteenorganisations representing street traders, marketvendors, tailors, tinsmiths, visual artists and otherworkers in the informal economy. Being affiliatedto ZCTU has given AZIEA a public profile andvisibility as the ZCTU has a direct platform withthe government through for example the TCLCand other means, and is therefore able to putissues on the agenda.

However,AZIEA feels that its relationship with

ZCTU could be strengthened further.Theorganisation believes that the ZCTU does notalways take up issues affecting workers in theinformal economy in the various fora in which itparticipates. It feels the trade union federationcould do more to bring up the needs of informaleconomy workers as represented by AZIEA, andto recognise AZIEA as a major stakeholder inissues to do with the informal economy.AZIEAwould like to have a more prominent role in theTCLC. Currently, it is only through the ZCTUthat the voice of informal economy workers isrepresented in the Council.As a result ofAZIEA’s weak representation in the TCLC andits dependence on the ZCTU, there have notbeen major achievements in this regard. Socialdialogue has tended to be more ad-hoc andinformal. Hence, the need for more formal socialdialogue mechanisms. Social dialogue is not onlythe means towards poverty reduction andcreation of Decent Work opportunities but it isalso an end in itself.As a 2003 ILO report notes:

The main goal of social dialogue itself is topromote consensus building and democraticinvolvement among the main stakeholders inthe world of work. Successful social dialoguestructures and processes have the potentialto resolve important economic and socialissues, encourage good governance, advancesocial and industrial peace and stability andboost economic progress. Social dialogue is,therefore, both a means and an end in thequest for poverty reduction. It is an essentialcomponent of participatory processesinherent to the drafting of inclusive andmeaningful PRSPs and a bedrock on whichthe foundations for an open, transparent anddemocratic society is laid.25

Social dialogue in the consultationaround the PRSPIf we look at social dialogue on labour marketand general economic issues in Zambia, it iscrucial to look at the process around thedrawing up of the Poverty Reduction StrategyPaper (PRSP), which has increasingly determinednational economic policies in many developingcountries, including Zambia. Since 1999,


developing countries interested in qualifying fordebt relief need to submit a PRSP in order to beeligible for concessional loans under the HeavilyIndebted Poor Country (HIPC) initiative which isa joint World Bank-IMF scheme. In their PRSP,countries are expected to quantify the extentand dimensions of poverty in their countries, andto suggest macroeconomic, structural and socialpolicies that will result in a reduction of poverty.

According to the World Bank and the IMF, PRSPsshould not be drawn up by governments in atop-down manner but should evolve from aparticipatory consultation process organisedwithin countries. In their view, this would thenensure that development strategies are country-driven rather than donor-driven. PRSPs weresupposed to correct weaknesses identified andcriticised in earlier structural adjustmentpolicies, namely lack of poverty focus and poorcountry ownership of the reforms.The WorldBank and IMF felt that economic recovery indeveloping countries could not take place unlesscivil society organisations were involved in thepolicy making process, particularly in theformulation of macroeconomic policies.This hasbeen quite new for many countries as they haveso far not regarded civil society as a stakeholder.

However, the PRSP processes have beencriticised for several reasons. Firstly, because theywere prepared rapidly and did not sufficientlyinvolve civil society.A recent report, for example,pointed out the neglect of trade union voices inPRSP processes.26 Similarly, the ILO hasproduced a report that sought to encourageinclusion of employment-related issues such asthe ILO’s Decent Work agenda into PRSPs.27

Zambia’s PRSP, which was submitted to the IMFin March 2002, focuses on measures to achievestrong sustained economic growth. It argues that“a growing economy that creates jobs and taxrevenues for the state is a sustainable powerfultool for reducing poverty.This growth should asmuch as possible be broad-based, therebypromoting income-generation, linkages, andequity”.28 The agricultural sector is given thehighest priority in Zambia’s PRSP as “agriculture

in Zambia combines the virtues of growth andequity”.29 Enhancing agricultural productivity isconsidered as a means to reduce poverty and toinclude the poor in growth.The paper sees thedomestic market as too limited and unsuitablefor significant growth and therefore encouragesproduction of export crops such as coffee,cotton, groundnuts, flowers and paprika. In orderto further develop the agricultural sector, thePRSP also stresses investment in infrastructuredevelopment, particularly rural roads. Secondly,since most urban poverty is due to job losses inmanufacturing and mining, the PRSP recommendsreviving these sectors in order to reduce urbanpoverty in this manner.Thirdly, furtherinvestment in the tourism sector is seen asoffering potential for economic growth. Finally,the PRSP also focuses on improving theeffectiveness of service delivery, in particularhealth and education, and explores the possibilityfor state-funded safety nets in order to assist thevulnerable, e.g. the disabled and aged.

Zambia’s PRSP recognises that 70 percent of theZambian population operates in the informaleconomy.30 It acknowledges that wages are lowerthan in the formal economy and the governmenttherefore feels people should be taken out ofthe informal economy by encouraging expansionof the manufacturing and mining sectors.Thegovernment of Zambia advocates that whilepeople are operating in the informal economy,they must be supported. Means of supportingthe informal economy include micro creditschemes, the provision of marketing andtechnological information to improveproductivity, and the development ofinfrastructure.

The Ministry of Finance and EconomicDevelopment (MFED) coordinated the PRSPconsultation process. MFED’s approach was tocontact the well-known umbrella organisations inZambian civil society, such as the Non-Governmental Organisations CoordinationCouncil (NGOCC) , the Civil Society forPoverty Reduction (CSPR) network , and theYoung Men’s Christian Association (YMCA).These umbrella bodies were then asked to

identify the lead organisation that wouldrepresent civil society in each particular thematicworking group part of the consultation process.Each working group had different relevantstakeholders and representatives from theprivate sector, civil society, church organisationsand government. Stakeholders were invitedbased on the fact that they had strength in aparticular working group area.A lead consultantwould prepare a discussion paper which wouldthen be discussed in each working group.According to an official from the CSPR network,there was no working group on the informaleconomy through there was a group on generalemployment creation. Civil society alsoembarked on a parallel PRSP consultation andformulation process, coordinated by Civil Societyfor Poverty Reduction (CSPR).

None of theinformal economyorganisationsinterviewed as partof this researchproject wereconsulted or tried

to get involved in the PRSP process aside fromthe Cross Border Trader Association (CBTA).According to a CBTA official, the organisationattended a range of workshops and think tankmeetings. One of the key issues captured in thePRSP that the association raised was the needfor micro-finance, the issue of HIV/AIDS and thelack of sufficient low-budget overnightaccommodation for cross border traders.

AZIEA feels that the PRSP consultation processwas dominated by well-funded NGOs ratherthan grassroots representative organisations.Participation in the process depended onwhether the organisation was a key player in civilsociety in Zambia. Other informal economyorganisations did not have the information onhow to get involved in the process or were notpart of the established civil society umbrellabodies.

As an associate member of the ZCTU,AZIEAwas represented through the trade unions which

fully participated in the PRSP consultationprocess. However, a ZCTU official interviewed aspart of this project felt that the government didnot fully embrace the consultation. ZCTU’s maininput into the PRSP was to advocate for moreresources to be allocated to the poor. Eventhough the ZCTU was very outspoken about jobcreation as a means to poverty alleviation, theZCTU representative felt that the final PRSPcontained only general statements like “thereshall be employment created” without concretemeasures and projects to create employment.The official noted that many complaints havebeen raised in relation to the PRSP formulationprocess and the ZCTU lost interest in theprocess.The official lamented that the problemwith the type of consultation they experiencedwas that government in the end focused on itsown plan, despite consulting stakeholders.

Zambia’s first PRSP covered a three-year period(2002-2004), and was then extended to 2005 toalign with the Transitional National DevelopmentPlan. In October 2005, the Civil Society PovertyReduction Forum (CSPR) published an evaluationin which it concluded that:

The level of achievement of PRSPimplementation can best be described asmodest since implementation of programmeshas been considerably slow due to a numberof bottlenecks such as weak capacities inimplementing agencies and slow andintermittent flow of funding to PRSPs. Evenwith this modest level of achievement,however, the additionality of the PRSPapproach is that it has at least led to asharper focus on poverty reduction and amore open participatory process by thegovernment and donors than was previouslythe case.34

As a successor to its first PRSP, the governmentof Zambia published its Fifth NationalDevelopment Plan 2006-2011 in June 2006.35 Thereport identities informal economy workers asone of the most vulnerable groups, and it isencouraging that the government plans “todevelop a comprehensive social security system


AZIEA feels that the PRSPconsultation process wasdominated by well-fundedNGOs rather thangrassroots representativeorganisations

which will include informal sector workers”.36 Inthe plan, the government also explicitly commitsto align its policies with the Decent Workagenda through the promotion of “workers’rights, harmonious industrial relations and labourstandards in order to enhance productivity andreduce poverty”.37 The report identifies thefollowing strategies in order to achieve DecentWork:

a) Conduct regular labour inspections;b) Convene sensitisation workshops and

conduct awareness campaigns on labour laws;c) Train social partners in conflict management

techniques;d) Establish a Secretariat to co-ordinate

tripartite consultative mechanisms within theDepartment of Labour;

e) Implement labour administration projects;f) Identify districts in which to establish labour

offices;g) Introduce labour market programmes

targeting the informal sector;h) Identify sectors with growth potential.38

Although not many details are provided in thedocument, it is encouraging to see that thegovernment of Zambia has developed anemployment and labour market policy which

intends to incorporate programmes targeting theinformal economy. However, it remains to beseen how these measures will be implemented inthe next five years.

Social dialogue in the informaleconomy: three case studiesSince the early 1990s, several organisationsrepresenting informal economy workers havebeen established in Zambia such as the CrossBorder Trader Association (CBTA), the LusakaInformal Traders’ Association (LITA) and theZambia National Marketeers’ Association(ZANAMA).This section explores the types ofrelationships that these organisations havedeveloped with central and/or local government,and how effective they have been in trying toinfluence government policies.

Cross Border Trader Association (CBTA)The CBTA was established in 1995 in Lusaka andrepresents around 35,000 members in theregion.The Association has 40 branches and apresence in over 15 markets in the Eastern andSouthern African region.The CBTA reports tohave developed a positive relationship with bothlocal and central government.The Associationbelieves that local authorities perceive the CBTAas “a dynamic association that has added sanity

Traders offloading goods in Lusaka

to the well being and work of the city”.Previously, cross border traders were tradinganywhere from streets and bus stops in Lusakabut in consultation with the Lusaka City Council,the CBTA managed to secure a plot of land inthe city centre that currently accommodates themajority of cross border traders in Lusaka(around 8,000 traders).

The market is known as COMESA market.COMESA, the Common Market for Eastern andSouthern Africa, refers to the preferential tradingarea that was formed in 1994 with 20 states inthe region participating. CBTA is the onlyinformal economy organisation in Zambia thathas been given authority to run an independentmarket in the country.The organisation hassigned a Memorandum of Understanding withthe Lusaka City Council which stipulates theirresponsibilities and includes procedures on whatthey are allowed and not allowed to do by thelocal authorities.The creation of a market hasgreatly assisted the Council as it has made iteasier for them to reach cross border traders. Ithas facilitated the collection of market levies.Recently, the association paid a block figure ofZMK 65,000,000 in levies to the Council whichwas collected from CBTA’s members on behalfof the Council.

Furthermore, thecreation of themarket has enabledthe Council todisseminateinformation easily totraders. Local

government disseminates information via mediaadverts on a range of issues they needcompliance on from the general public andstreet traders and market vendors in particular.CBTA’s Information and Publicity Departmentrelates with the Public Relations Department oflocal government. CBTA also interacts with localauthority on security concerns through theCouncil police. Once in six months, they meetwith the Council to identify areas of concernand to iron out problems between traders andthe local government.

For the traders, being a member of the CBTAmeans being granted a traders’ license.As anAssociation, the CBTA has negotiated for a blocktraders’ license valid for a year that covers allthe traders in COMESA market.The blocktraders’ license saves traders time from queuingup at the local government offices every year topay for individual trader licenses.

Under the free trading area that the COMESAtrade protocol brought into effect, traders canimport goods duty-free from a country withinCOMESA, upon showing a certificate of origin ofthe goods. In order to facilitate this process forcross border traders who usually trade smalleramounts of goods, the CBTA has lobbied theMinistry of Commerce,Trade and Industry(MCTI) for a simplified certificate of origin forsmaller traders with goods valued at US$ 500 orless. Other achievements of the Association’snegotiations with the MCTI are the facilitation ofCBTA members to participate in internationaltrade fairs in other countries; guidance totraders on product standards of imported itemsthrough the Zambia Bureau of Standards; andintegration of informal traders into bilateraltrade discussions with other COMESA memberstates, especially with regard to concerns relatedto non-tariff barriers.

The CBTA feels it has developed a fairly goodrelationship with central government, anddescribes its relation with especially the MCTI asa partnership. One of the factors that the CBTAattributes to their success in their negotiations isthe fact that the local authorities realise the kindof contribution the Association is making to thedevelopment of the City of Lusaka.The localgovernment in general is aware that the CBTAhas created relief for the Council by enabling itto disseminate information and collect leviesfrom traders with ease.

Lusaka Informal Traders’ Association (LITA)The experience of LITA, an organisationrepresenting street traders in Lusaka’s citycentre, is less positive. For example, when LITA’srepresentatives visited the Lusaka Mayor’s officein 2006 to discuss a recent eviction of street


Among one of its manyachievements, the CrossBorder Traders’ Associationhas secured a block traders’license for all its members.

traders from the city centre, they were not wellreceived. Local authorities made it clear thatthey are unable to allow street trading, andLITA’s representatives were asked to makeanother appointment.The organisation alsoapproached local authorities with a petition onthe Fast Track Court system which is currentlyin place in Lusaka and enables local governmentto instantly fine, prosecute and occasionallyimprison street traders.Although the LusakaCity Council (LCC) sympathised with thetraders, the problem was not solved.

In the past, LITA has had some positivenegotiation experiences with the city planningunit of the LCC.They managed to negotiate forthe placement of standard kiosks (‘ntembas’)around Lusaka, sponsored by Coca Cola.Theassociation had a written agreement with thelocal authorities on the Coca Cola kiosksprogramme and local government acknowledgedthe existence of these agreements, as they didnot evict the traders operating from the kiosksfrom the streets.

The links that LITA managed to establish withCoca Cola had also been facilitated by theVendors’ Desk which was set up by formerPresident Frederick Chiluba (1991-2002) as adirect department within State House.Throughthe Vendors’ Desk, which was abolished byChiluba’s successor Levy Mwanawasa, LITA hadbeen able to negotiate some business contractsaimed at supporting small businesses in theinformal economy.The Desk facilitated linkagesbetween the traders and some larger industries,and it provided the traders with opportunities toact as suppliers.Although the Vendors’ Desk wasclearly established for political reasons to securevotes and to retain support of the many workersthat were retrenched during Chiluba’s reign, itdid provide support and relief to workers in theinformal economy according to LITA.

Zambia National Marketeers Association (ZANAMA)ZANAMA represents market trader interests inseven provinces of Zambia. Since itsestablishment in the late 1990s, the organisationhas become increasingly influential. ZANAMAhas managed to build a good relationship with

Street traders in Lusaka city centre

local authorities, particularly in Kitwe, Mansa andLuanshya. However, this has required manyefforts on the part of the organisation. Forexample, when market levies for stalls in themarkets in Kitwe District were raised in 2004from ZMK 250 to ZMK 1,000, marketeers wereconcerned not being able to afford theseincreases, especially traders who were sellingsmall items such as sweet potato leaves.

In response to the announcement of the localauthorities, ZANAMA went on air to instructtraders not to comply with the new levy untilthere was discussion with the local authorities inLuanshya and Kitwe.This announcement resultedinto the arrest of ZANAMA officials in the twocities.The arrest of the leadership led tomembers’ refusal to pay the increased levies.Subsequently, ZANAMA filed an injunctionagainst the local authorities which they laterwon.At the same time, the police was deployedin markets forcing marketeers to pay.Those thatrefused to pay were arrested.

After the protests, the Town Clerks in Kitwe andLuanshya realised the need for dialogue betweenlocal government and marketeers. Subsequently,the local authorities met with ZANAMA todiscuss the best way to go about the issue.Theyagreed not to put the issue on hold.After 19months, a meeting was reconvened betweentrader representatives and the local authoritieswhere they agreed on the need for the Councilto raise the levy in order to improve serviceprovision in markets. Marketeers had beenconcerned about the increase in levies,particularly because they felt collection of levieshad not resulted into improvement ofinfrastructure in the markets.

In 2005, it was also agreed to set up a jointcommittee of ZANAMA and local authoritiesthat would undertake a thorough assessment ofthe revenue collected in the markets under theold levy.This was then used to help to determinethe new levy. Both ZANAMA and the localauthorities subsequently collected levies andZANAMA’s working hypothesis was that thetotal revenue collected by the marketeers wouldbe higher than what would be remitted to theCouncil authorities by the officers normallycollecting levies in the markets.WhereasZANAMA was able to collect ZMK 11,000,000per month in 2 markets, Council officers onlydeclared ZMK 4,600,000 to the local authoritiesper month in 26 markets.This confirmedZANAMA’s hypothesis that a lot of revenuecollected from marketeers was being pocketedby Council officials.As a result of this exercise, anumber of local government officers lost theirjobs.The joint ZANAMA and local governmentcommittee is still working on the way forwardon the new levy.

In this case, ZANAMA was successful in makinglocal government more accountable andrequesting them to take into account the viewsof market traders.While previously markettraders were often harassed and stigmatised, theattitude of local authorities has changed, andthey have realised that they are not able toignore the views of market traders.This hasresulted in improved working conditions formarket vendors who now feel better treated asworkers.Although ZANAMA’s approach initiallywas quite confrontational, the organisation nowfeels it has become more mature and this hashelped in sustaining the negotiations with thelocal authorities.



ZANAMA elections in Chisokone Market, Kitwe


The overall objective of this research projectwas to assess the current state of social dialoguein the informal economy in Zambia and toidentify key steps to create Decent Workopportunities for market vendors and streettraders. It is clear that in order for informaleconomy workers to build pressure ongovernment to enforce their rights, tackling theirproblems needs to be given much higher priorityin policy formulation on issues to do with theinformal economy and with creation ofemployment more generally.

While this research project found that there is alevel of social dialogue emerging betweengovernment and informal economy organisations,it remains informal, nascent and without a clearstructure.There are currently no guidelines inexistence to encourage dialogue between suchorganisations and government.The semblance ofsocial dialogue that does exist seems to bedependent on unsustainable factors such as the“good will of officials and skills of leaders ofspecific organisations”.

The lack of recognition and stigmatisation ofinformal economy workers has seriouslyhindered social dialogue. Given the significantcontribution of the informal economy towardsthe national economy and the crucial importanceof it as a source of employment, there is a needfor a regulatory framework that extendsprotection to the workers concerned. Supportof the trade unions on informal economy issuesis crucial as union federations such as the ZCTUhave already gained a public profile and a place informal consultations such as the TCLC and thePRSP process.

Given the fact that 83 percent of all Zambiansmake a living in the informal economy,promotion of their concerns through socialdialogue mechanisms will ensure that local and

national policies reflect the needs of the majorityof Zambia’s workers.Addressing the interests ofpeople engaged in informal work through formaland institutionalised forms of social dialogue willhelp to ensure that pro-poor policies areformulated for the majority of Zambia’s labourforce.

Women in Zambia are more likely to beemployed in the informal economy than men.While 24 percent of Zambian men have formaljobs, only 9 percent of women are in formalemployment. Hence, they are more prone toinsecure jobs, lack of social protection and highlyprecarious working conditions.The challenge forinformal economy organisations is to encourageeffective participation of women into theirorganisations, and to adequately represent thespecific needs of women in engagements withlocal and national government. Promotion ofsocial dialogue will then reduce the vulnerableposition of women in the informal economy inZambia.

There is also a challenge for informal economyorganisations to become more pro-active in thearea of policymaking, and to make themselvesheard more effectively.As we have seen in thecase of ZANAMA, persistence and perseverancepays off as government simply feels it cannot gobeyond your organisation.The recognition ofZANAMA on the part of local governmentresulted into less harassment of market vendorsby local Councils, and hereby improved theirworking conditions. Often, informal economyorganisations feel hampered in their capacity toanalyse complex policies and to provide formalresponses. Donor support as well as increasedcooperation and networking between informaleconomy organisations and umbrella bodies suchas the Civil Society Poverty Reduction networkand other policy-based NGOs will assist inbuilding capacities.

5. Conclusion


This report recommends:

• trade union federations to ensurerepresentation of the interests of informaleconomy workers during the ILO AnnualConference in Geneva and, where relevant, toinclude representatives from informaleconomy organisations in official delegationsto ILO Annual Conference in Geneva;

• trade union federations to promotesupportive relations between trade unionsand informal economy organisations;

• the Government of Zambia and local councilsin Zambia to establish formal social dialoguemechanisms with informal economyorganisations;

• the Government of Zambia to engageinformal economy organisations in its nationalpolicy formulation processes;

• the Government of Zambia to developcomprehensive statistics on the size andcontribution of the informal economy, andthe relation between informality and poverty;

• the Civil Society Poverty Reduction Forum(CSPR) to include informal economyorganisations through its consultationprocesses around government policies;

• informal economy organisations to considerinvesting into research capacity building inorder to enable organisations to analysepolicy changes and to provide an analyticalresponse to these changes;

• informal economy organisations to encouragewomen to take up leadership positions andto adequately represent the specific needs ofwomen in the informal economy.

Recommendations to stakeholders

T I M E F O R A N E W D E A L 2 1T I M E F O R A N E W D E A L 2 1


Civil Society for Poverty Reduction (2005).Evaluation of the 2002-2004 Poverty ReductionPaper, October 2005. Lusaka: CSPR.

Fashoyin,T. (2002). The contribution of socialdialogue to economic and social development inZambia. Geneva: ILO.

Government of Zambia (2002). Zambia PovertyReduction Strategy Paper 2002-2004. Lusaka:Ministry of Finance and National Planning.

Government of Zambia (2004). Living ConditionsMonitoring Survey Report 2002-2003. Lusaka:Living Conditions Monitoring Branch, CentralStatistical Office.

Government of Zambia (2006). Fifth NationalDevelopment Plan 2006-2010. Lusaka: Ministry ofFinance and National Planning, Government ofZambia.

Horn, P. (no date). Voice regulation on the informaleconomy and new forms of work. Geneva: GlobalLabour Institute (available from: www.global-labour.org/voice_paper.htm).

ILO (1999). Report of the Director-General: DecentWork, 87th Session. Geneva: ILO

ILO (2002). Decent Work and the informaleconomy. Report VI. International Labour Conference,90th Session, Geneva. Geneva: ILO, p. 2.

ILO (2002). Report of the Director-General: DecentWork and the Informal Economy, 90th Session, p. 3-4, Geneva: ILO

ILO (2002). Women and men in the informaleconomy: a statistical picture. Geneva: ILO.

ILO (2003). Social dialogue and the PovertyReduction Strategy Paper (PRSP) process inCambodia: an assessment. Geneva: ILO.

ILO (2005). Decent Work and Poverty ReductionStrategies. A reference manual for ILO staff and itsconstituents. Geneva: ILO.

Lungu, J. and Mulenga, C. (2005). Corporate socialresponsibility practices in the extractive industry inZambia.A Report for the Catholic Commissionfor Justice, Development and Peace, theDevelopment Education Community Project, andthe Zambia Congress of Trade Unions.

McCulloch, N., Baulch, B. and Cherel-Robson, M.(2000). Globalisation, poverty and inequality inZambia during the 1990s. Brighton: Institute ofDevelopment Studies, University of Sussex.

Nyirenda, E. J. and A. Shikwe (2002). Trade unioncountry report - Zambia. Lusaka: Friedrich EbertStiftung.

Schneider, F. (2002). Size and measurement of theinformal economy in 110 countries around theworld. Paper presented at a Workshop of AustralianNational Tax Centre, ANU, Canberra, Australia, July17, 2002.

Trade unions and poverty reduction strategies,Labour Education, 2004(1/2) 134-135.

War on Want (2006). Forces for change: informaleconomy organisations in Africa. London:War onWant.Available from:www.waronwant.org/forcesforchange.

Bibliography


1 See: ILO (1999). Report of the Director-General:Decent Work, 87th Session. Geneva: ILO(available from:www.ilo.org/public/english/standards/relm/ilc/ilc87/rep-i.htm).

2 ILO (2002). Decent Work and the informaleconomy. Report VI. International LabourConference, 90th Session, Geneva. Geneva: ILO,p. 2.

3 See: ILO (2002). Report of the Director-General:Decent Work and the Informal Economy, 90thSession, p. 3-4, Geneva: ILO (available from:www.ilo.org/public/english/standards/relm/ilc/ilc90/pdf/rep-vi.pdf).

4 Ibid., p. 71.5 See: ILO (1999). Report of the Director-General:

Decent Work, 87th Session. Geneva: ILO(available from:www.ilo.org/public/english/standards/relm/ilc/ilc87/rep-i.htm).

6 See:www.ilo.org/public/english/dialogue/themes/sd.htm

7 See: Horn, Pat,Voice regulation on theinformal economy and new forms of work(available from: www.global-labour.org/voice_paper.htm).

8 McCulloch, N., Baulch, B. and Cherel-Robson,M. (2000). Globalisation, poverty and inequality inZambia during the 1990s. Brighton: Institute ofDevelopment Studies, University of Sussex.

9 Lungu, J. and Mulenga, C. (2005). Corporatesocial responsibility practices in the extractiveindustry in Zambia,A Report for the CatholicCommission for Justice, Development andPeace, the Development EducationCommunity Project, and the ZambiaCongress of Trade Unions, p. 7, available fromwww.niza.nl/docs/200505301137193579.pdf.

10 Data from Mineworkers Union of Zambia,2005. Quoted in: Lungu, J. and Mulenga, C.(2005), p. 77.

11 MTEF 2004-6, ZPA website, 2003,

www.zpa.org.za.12 Living Conditions Monitoring Branch, Central

Statistical Office, Government of Zambia,2004, Living Conditions Monitoring Survey Report2002-2003, Lusaka: Zambia, p. 11. Summaryavailable on website:www.zamstats.gov.zm/general/lcmsIIsum.asp.

13 Ibid.14 Ibid.15 Schneider, F. (2002). Size and measurement of

the informal economy in 110 countries aroundthe world. Paper presented at a Workshop ofAustralian National Tax Centre,ANU,Canberra,Australia, July 17, 2002, p. 6.Available from website Rapid Response Unit(RRU),World Bank:rru.worldbank.org/Documents/PapersLinks/informal_economy.pdf.

16 Fashoyin,T. (2002). The contribution of socialdialogue to economic and social development inZambia, p. 20.

17 Quoted in Fashoyin,T. (2002). The contributionof social dialogue to economic and socialdevelopment in Zambia, p. 20.

18 Nyirenda, E.J. and A. Shikwe (2003). TradeUnion Country Report – Zambia, p. 16.

19 Fashoyin,T. (2002). The contribution of socialdialogue to economic and social development inZambia, p. 10.

20 Ibid., p. 11-1221 Nyirenda, E.J. and A. Shikwe (2003).Trade

Union Country Report – Zambia, p. 20.22 Fashoyin,T. (2002). The contribution of social

dialogue to economic and social development inZambia, p. 12.

23 Ibid., p. 13.24 TEVETA was established by the government

in 1998, and its major objective is to assist in“regulating, monitoring and coordinatingtechnical education, vocational andentrepreneurship training in consultation withindustry, employers, workers and otherstakeholders” (Fashoyin 2002: 28).TEVETA

Notes

2 32 3T I M E F O R A N E W D E A L 2 3

provides advice to the government on skillsdevelopment through technical education,vocational and entrepreneurship training.

25 ILO (2003). Social dialogue and the PovertyReduction Strategy Paper (PRSP) process inCambodia: an assessment. ILO: Geneva.Available from:www.ilo.org/public/english/dialogue/ifpdial/downloads/papers/cambodia.pdf

26 Trade unions and Poverty ReductionStrategies, Labour Education, 2004(1/2) 134-135,www.ilo.org/public/english/dialogue/actrav/publ/134/134.pdf

27 ILO (2005). Decent Work and Poverty ReductionStrategies. A reference manual for ILO staff andits constituents. Geneva: ILO.Available from:www.ilo.org/public/english/bureau/integration/departme/national/prsp/download/prsrefmanual.pdf

28 Government of Zambia (2002). ZambiaPoverty Reduction Strategy Paper 2002-2004.Lusaka: Ministry of Finance and NationalPlanning, p. 11.Available from:povlibrary.worldbank.org/files/11240_Zambia_PRSP.pdf.

29 Ibid, p. 11.30 Government of Zambia (2002). Zambia

Poverty Reduction Strategy Paper 2002-2004.Lusaka: Ministry of Finance and NationalPlanning, p. 11.Available from:povlibrary.worldbank.org/files/11240_Zambia_PRSP.pdf.

31 The Non-Governmental OrganisationsCoordination Council (NGOCC) is anumbrella body for women’s rightsorganisations in Zambia. NGOCC was

established by a few Zambian women NGOsin 1985 after the United Nations Worldconference on women held in Nairobi, Kenya.See www.ngocc.org.zm/ for more informationon the organisation.

32 The Civil Society for Poverty Reduction(CSPR) network has been involved in thefight against poverty in Zambia. Established in2000, the overall objective of the CSPR wasto ensure that civil society effectively andmeaningfully participates in the design,formulation and implementation of thePoverty Reduction and Strategy Paper(PRSP). See www.cspr.org.zm/ for moreinformation on CSPR activities.

33 For more information on the CBTA, pleasecheck section “Social dialogue in the informaleconomy: three case studies”.

34 Civil Society for Poverty Reduction (2005).Evaluation of the 2002-2004 Poverty ReductionPaper, October 2005. Lusaka: CSPR, p. ix.Available from:www.cspr.org.zm/Reports&Updates/2002-2004-PRSP-evaluation.pdf

35 Government of Zambia (2006). Fifth NationalDevelopment Plan 2006-2010. Lusaka: Ministryof Finance and National Planning,Government of Zambia.Available from:www.cspr.org.zm/Reports&Updates/FNDP.pdf

36 Ibid., p. 160, 162.37 Ibid., p. 173.38 Ibid., Government of Zambia (2006). Fifth

National Development Plan 2006-2010. Lusaka:Ministry of Finance and National Planning,Government of Zambia, p. 173.Available from:www.cspr.org.zm/Reports&Updates/FNDP.pdf.


Cover photo: Informal market in Lusaka, Zambia. Back page photos:Traders in Soweto and Kamwala Market in Lusaka.

Time for a new dealSocial dialogue and the informal

economy in Zambia

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War on Want fights poverty indeveloping countries in partnershipand solidarity with people affected byglobalisation.We campaign forworkers' rights and against the rootcauses of global poverty, inequalityand injustice.

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Research Project Coordinator and EditorWendy Willems, Research Officer,War on Want

Researcher in ZambiaNachilala Nkombo

Published in July 2007

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