THE ROLE OF TRADE UNIONS AND INFORMAL ECONOMY ASSOCIATIONS IN ZAMBIA Johannesburge, South Africa 10-14 December 2007

1. THE ROLE OF TRADE UNIONS AND INFORMAL ECONOMY ASSOCIATIONS IN ZAMBIAJohannesburge, South Africa 10-14 December 2007

2. BACKGROUND • CISEP brainchild of ZCTU • Established in 1998 in collaboration with FES and GTZ/STEP-IN

3. WHAT IS CISEP • Concept for employment promotion through micro enterprise development • It aims at creating opportunities for self-employment and contributing to alleviation of poverty while enhancing economic growth

4. It facilitates formal links between; • Informal economy workers • Micro entrepreneurs • Relevant service providers • Assists in matching of informal sector services and goods to customer demands Operations; • Through networks of satelite offices located in areas of high demand • Co-ordination offices located in Kitwe and Lusaka

5. MISSION STATEMENT CISEP is a concept for employment promotion in the formal and informal economy in Zambia. It aims at creating opportunities for (Self-) employment and contributing to the alleviation of poverty and enhancing economy growth

6. CISEP OBJECTIVES • It aims at providing information, counselling and short term services to the ultimate groups of informal economy workers, micro entrepreneurs, employment seekers and retrenchees/retirees.

7. CISEP BOARD • Constitutes primarily on basis of direct linkage to the issues of informal economy employment promotion • Facilitate the process of integrating CISEP into existing systems

8. ZCTU BOARD CISEP Co-oridination office AZIEA ISOs ISOs ISOs ISOs ISOs

9. MAJOR ACTIVITIES • Identification/mobilization of retrenchees, retirees, youths and women • Provision of Basic Business Management and Technical Skills training • Provision of linkages to other services providers • Facilitating for formation of trade associations

10. Provision of business counselling • Management of HIV/AIDs to SMMES • Facilitation of management of trade association leadership skills • Organize and conduct seminars/workshops

11. Basic Business Management/Awareness • Business Awareness training • Generate Your Business Idea (GYBI) • Start Your Business (SYB) • Improve Your Business (IYB) • One-up Business Management training • Formation and management of Informal economy associations

12. Technical Skills Training • Tie and Dye • Batik • Flower Arrangement • Oyster Mushroom growing • Roof construction • Upholstering • Commercial Food processing (Meat Processing) • Professional cake-making and decoration

13. CISEP NETWORK • 10 service centres operating in different institutions in Zambia • Copperbelt has three (3) located at ZCTU,MUZ and Wusakile UCZ • Operations are conducted in a uniform manner • Monthly meeting are held to report on activities and share experiences

14. CISEP CONCEPT • Developed in view of the increasing informal sector activities • Provides link between service providers and informal economy workers • Types of CISEP Service • Centres • Co-ordination offices • Satelite service centre

15. SERVICE PROVIDED BY CISEP CENTRE • Direct services to target group • Services offered at a minimal fee

16. TYPES OF SERVICES • Business information provision • Training programmes • Market opportunities • Sources of finance on entrepreneurship and self-employment • Advice and counsel on business basic Types of Services

17. Product/ service quality • Investment opportunities • Importance of forming business associations etc.

18. Facilitate Training in; • Basic management and technical skill training • Formation and management of trade associations • Coaching and follow-up for individual clients

19. SUSTAINABILITY Three main aspects ofSustainability Management Financing Ownership

20. Training Funds (co-financing) • Parent organization • Donor funds • Participants’ contribution

21. TRUCK RECORD

22. THE APEX BODY OF INFORMAL SECTOR ASSOCIATIONS • AZIEA is a national representative umbrella organization with 13 affiliates • Individual membership is over 1 million • Its constituency includes, market, street vendors, cross board traders, carpenters, peasant farmers.

23. AZIEA was formed in 2001 • With a purpose of uniting informal economy workers and strengthening the voice and power of representation • Its national secretariat is housed at ZCTU • With three (3) full time employees • General Secretary, National Coordinator and National Organizing Secretary

24. LINKAGES WITH THE TRADE UNION FEDERATION • AZIEA is an associate member-affiliate of Zambia Congress of Trade Unions • ZCTU has shown solidarity by joining and participating in campaigns organized by AZIEA and issuing press statements on issues affecting informal economy workers

25. ZCTU also invites AZIEA to participate in organized activities of the national federation including, labour day celebrations, protests relating to labour rights, organizing education workshop on workers and civil rights • ZCTU includes AZIEA in its delegation to international meeting e.g. International Labour conference in Geneva

26. SALIENT CONDITIONS/CONSTRAINTS FACED BY INFORMAL ECONOMY WORKERS IN ZAMBIA • No legal framework • Lack of social security for informal economy workers • Lack of representation in policy dialogue and decision making • No institutional forums for negotiations • Continued harassment from various types and levels of authorities (Local Authorities, Police, Zambia revenue authority, including party cadres of the political party in power) • Allocation of trading sites • Evictions from trading places • Unilateral increase of levies or taxes • Registration system for informal economy traders • Lack of recognition and protection of rights in law • Undermining by public authorities • Negative social attitude towards women and towards informal economy • Corruption • Political manipulation • Lack of continuity in local government after political or structural changes • Health and safety

27. GOVERNMENT POLICY • There seems to be no comprehensive policy framework out lining the goals of government objectives principles etc as regard the economy • Uncoordinated and piece meal interventions such as the establishment of the small enterprises development board (SEDB), the Technical Education and Vocation training Authority (TEVETA) and the initiative in ZCTU under CISEP (Concept for Informal Sector Employment Promotion.

28. Reading through the labour market and employment draft policy document, one notes that may be there is no overt informal economy policy per-se • Government believes that this economy is a transient phenomenon and will therefore pass away when the small medium Enterprises (SMEs) have been assisted to graduate into main stream industrial economy – • Of course we know better, the informal economy is here to stay. • Infact the ILO admitted that “ it would be unrealistic to assume that the informal economy will be residly integrated into the modern economy”

29. CHALLENGES FACING AZIEA • Instilling the spirit of struggle in the informal economy workers • Uniting all informal economy organizations into one organization with a strong voice • To have man women leaders in the informal economy organizations • To have independent and democratic workers organization in the informal economy • To have strong financial base to carry out programmes • Coping with HIV/AIDs pandemic • Identification and articulation of national issues • To be recognized as workers and workers representative organizations

30. CONCLUSION • The contents of this report represents important action and activities that have taken place since the inception of the CISEP approach • It also contains efforts made by various stakeholders who participated in the improvement of the concept • Several attempts were made to help CISEP achieve its objectives in the promotion of self-employment • The fact that the concept has not been fully understood by some institutions and individuals , clear means that sensitization programmes must be an on going activities to reach out to many other service providers.