cushioning fund

SMEs seek access to insurance services

HE Micro, Small to Medium Enterprises (MSMEs) says engagement with insurance service providers is critical in facilitating enhanced access to affordable social security schemes that protect small businesses and provide friendly banking operations. Bulawayo MSMEs programme co-ordinator, Mr Nketha Mangoye Dlamini, said at the moment there were no specific insurance products suitable for SMEs. He said it was for this reason that representatives from their sector have started engaging different insurance service providers to come up with flexible schemes for the informal sector. Mr Dlamini said SMEs do not retire early but after retirement, they need some financial backup just like in other departments and to achieve this every business operator must have social security cover. “We have been doing some exercises to handle the insurance issue on pensions and to ensure products and places where SMEs are operating their businesses are covered,” said Mr Dlamini. “We are in discussion with different insurance service providers where some are trying to introduce pension schemes for SMEs. There is no product taking care of micro, small and medium enterprises.” Mr Dlamini went on to say pensions are also important to SMEs as they can be used as collateral in accessing funds for the growth of their businesses. “It’s easier for service providers to deal with registered formalised entities, be it vendors or SMEs. This will also assist in knowing their place of work and type of businesses they are into and it becomes easier for the insurance service providers,” he said. During the 2023 national budget consultation held early this month, Bulawayo Vendors and Traders Association (BVTA) urged the Government to craft a national budget that would establish subsidised insurance, medical aid and pension schemes for players in the informal sector. The association said the schemes would be targeted at cushioning traders in the informal sector from social and economic vulnerabilities as the sector has unique characteristics that need to be attended to. Commenting on the BVTA suggestion, Bulawayo Chamber of SMEs chairman Mr Costin Ngwenya said SMEs are exposed when it comes to insurance and security schemes as they are beyond their reach. “Government can provide the subsidised schemes. However, it should not be its responsibility alone, the private sector through the traditional providers of these schemes should go back to the drawing board and come out with tailor-made schemes, which should be affordable and sustainable to SMEs,” said Mr Ngwenya. “We have other organisations like Econet, through EcoLife they have introduced a pension scheme for the SMEs, the scheme is affordable and sustainable and I am encouraging the SMEs to take advantage of it.” Early this year, the National Social Security Authority (Nssa) prepared similar recommendations to the Government for a social security scheme for the informal sector. National Security Authority (Nssa) The proposed scheme is in line with Vision 2030 and the National Development Strategy 1 and is part of Nssa’s contribution to a prosperous upper middle-income economy by 2030. Under the National Development Strategy 1 (NDS1), the blueprint that guides the country’s development between 2021 to 2025, unlocking the potential of SMEs is one of the critical steps towards fostering inclusive economic transformation. SMEs have become dominant economic players in Zimbabwe but a majority of them still operate informally. It is for this reason that the Government has sought to prioritise the development of SMEs and facilitate their formalisation.

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Bulawayo Vendors Appeal For Govt Cushion Allowances

THE Bulawayo Vendors and Traders Association (BVTA) has appealed to the government to assist them in accessing cushion allowances for them to survive through the current lockdown Level IV. Two weeks ago Vice President and Health Minister Constantino Chiwenga announced the reintroduction of lockdown Level IV as new Covid-19 cases surged. Informal traders were ordered not to operate during the 30-day lockdown period, a situation which has had a serious impact on the welfare of the vendors and their families. In an interview with NewZimbabwe.com, the BVTA director, Michael Ndiweni said vendors had spent all their savings during the festive season unaware the government would reintroduce the Covid-19 restrictions. “We are, therefore, calling on the government to immediately provide us with cushioning funds because the situation is dire in the homes of our members. People are not working, it has been over a week now and most of them have expended the funds which they had saved during the festive season,” he said. “So the government must urgently come up with mechanisms to cushion the informal traders. We sent them a data base and they sent the initial money last year in September and they can easily disperse other funds now because people are now starving.” A majority of Zimbabweans are unemployed and depend on informal jobs for survival. Ndiweni also urged the government to revise its decision of closing the door on informal traders saying it would result in the rise of criminal activities in poor communities. “We still emphasise that the government must reconsider the decision of banning markets. At least they should open and create conditions. People are really struggling because it’s mid-month and they are failing to support their families. “Some of them might end up stealing and robbing people of their valuables and lives might be lost during the process,” said Ndiweni.

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BVTA Press Statement on the disbursement of the Cushioning Fund

21 October 2020 As Bulawayo Vendors and Traders Association (BVTA), we acknowledge and welcome the development that has been done by the Ministry of Labour and Social Welfare. Members yesterday confirmed receipt of RTGS $600, as part of the government promised cushioning fund. The amount was disbursed through the One Money Mobile Wallet transfer on NetOne Sim cards that they were given in July, 2020. However, we feel that the money is too little considering the challenges that informal traders have faced during COVID-19 induced lockdown. BVTA is concerned that vendors and informal traders were greatly affected by the lockdown, some lost their capital during the first phase of the lockdown, if the cushioning fund was a reasonable amount, it was going to enable them to restock their wares. Schools are opening soon, traders have to pay school fees and look after families at the same time and we think the disbursed money will not enable them to cover their needs. We call for the government to urgently review this figure so that it can make an impact in the affected lives of vendors and informal traders. Contact details: Fourth floor, Suite 406, Fidelity Life Building Fife street and 11th Avenue Email:bulawayovendors@gmail.com Facebook: Bulawayo Vendors Trust/ Bulawayo Vendors and Traders Association Twitter: @bvtatrust Website: www.bvtatrust.org Phone: +263 713 635 908

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Executive Director’s note

As we look back in the past five months, we see a trail of challenges that have been faced by vendors and informal traders due to the COVID-19 pandemic. We have recorded cases of rights violations; we continue to implore authorities to recognize the informal economy and decriminalise informal economy workers as their rights are guaranteed in Section 24 of the Constitution of Zimbabwe. The closure of markets in March 2020 also meant that a large number of families dependent on informal trading lost their means of survival.  A number of traders have not been able to do their businesses, only now when the government partially opened the markets but also it was curtailed by the introduction of the dusk to dawn curfew, its extension further meant that vendors and informal traders continue to have limited hours to do their work as they have to rush to transport queues in order to beat the curfew deadline. We are also saddened by the failure of government to fulfil its pledge of providing a cushioning fund to vendors and informal traders. Our members have been made to obtain One Money sim cards at Mhlahlandlela Government Complex, but up to date nothing has materialised. We feel that it is unfair to give traders false hope. As an organisation we have not folded our hands, we have initiated processes and have come up with initiatives to help traders cope and survive under the ‘new normal’. For example, we have come up with ideas for vendors to start producing goods like food products, garments and detergents and we have made them work in groups. We made efforts to add value and also help them market their products through online marketing.   We have written to the Government through the Ministry of Home Affairs and Cultural Heritage lobbying them to re-open borders because it our firm belief that not all of Informal Cross Border Traders will be absorbed in our new ideas as some will still need to go and look for raw materials for producing goods. Therefore it is in our view that the opening of borders must be done urgently but under a strict control that ensures observation of the WHO recommended protocols. Moving ahead, we are into a new project that is directly responding to the impact of COVID-19 titled Market Aggregation -COVID19 Vendors Response and Market Access Project (CVR- MAP) where we are recruiting market bailiffs to educate vendors and informal traders on the importance of combating the spread of the virus. We are deploying market bailiffs to market places to educate other traders, monitor and observe if traders and customers are maintaining social distancing and wearing masks.  The project will also be linking traders in this difficult time to market within each other through Market Aggregation, so we are trying to bring them together by introducing a platform where they can sell together and market their goods as traders.  As an organisation we look forward to continue supporting traders in the ways we think will reduce COVID-19 and help them sustain their livelihoods. We thank our partners who have stood with us in this difficult period supporting informal economy workers who are the hardest hit by COVID-19 induced lockdowns.  #kickoutcorona #khahlelalicorona.

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Vendors face challenges in accessing cushioning funds

Bulawayo Vendors say they are facing challenges in accessing Covid-19 bailout funds promised by the government. Some of the vendors received NetOne sim cards meant for them to receive cushioning funds against the Covid 19 effects. Bulawayo Vendors and Traders Association (BVTA) Director Michael Ndiweni said they were tired of waiting for the money. He said vendors are still waiting for the relief fund. “As far as we know no one has received the money, so we are wondering who has received it,” he said.

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Informal traders receive SIM cards for COVID-19 cushioning funds

Informal traders in Bulawayo have started receiving NetOne SIM cards as part of preparations to receive COVID-19 cushioning funds from the government, Bulawayo Vendors and Traders Association (BVTA) has revealed. Through the Social Welfare Department, the government pledged to avail ZWL$600 million to the informal sector to mitigate the effects of COVID-19, with each individual to at least get ZWL$200. In an Interview with CITE, BVTA executive director, Michael Ndiweni, said the Ministry of Women Affairs, Community, Small and Medium Enterprises Development made a call for the approved vendors to collect their SIM cards at Mhlahlandlela Government Complex. “We have 77 percent of our people that we sent who were approved to receive the cushioning grant,” said Ndiweni. “We had rejected the use of NetOne as the sole mobile money transfer. We argued that it was going to short-change those who are using Econet and Telecel, so the government then decided to give out SIM cards to all those that have been approved to receive the grant.” BVTA executive director, Michael Ndiweni. Ndiweni further elaborated: “The Ministry of Women Affairs, Community, Small and Medium and Enterprise Development has released NetOne SIM cards for the cushioning funds. They have asked members to come and collect their SIM cards that will be used to disburse the cushioning fund, so we have been sending our members as of yesterday (Monday) in batches to their offices in Mhlahlandlela”. He said at least 396 applications for the cushioning funds were turned down. “From our side we sent about 1721 names of our members and out of that database that we sent, 1 325 managed to be approved to get the SIM cards but the money is not yet in. People are collecting SIM cards,” he said. Ndiweni said they were calling on the government to make the call again and re-consider the applications of those vendors who did not make it as they also deserve to be cushioned.

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BVTA Press Statement on the Cushioning Fund.

09 June 2020 Bulawayo Vendors and Traders Association (BVTA) would like to acknowledge some progress in ensuring that vendors and informal traders receive the cushioning fund and inform its partners and stakeholders that after a protracted and frustrating advocacy, on the need for the government to expedite the COVID-19 induced informal sector cushioning fund, the organization has finally received an approved list of its members that have been included in the consented list to benefit in the fund. The fund will be disbursed through the One Money mobile money facility, although it is on public record that the association and others like Vendors Initiative for Socio and Economic Transformation (VISET) had vehemently opposed the use of One Money mobile transfer facility, arguing that it will short change those who use other mobile transfer agents. In its response, the government decided to issue out One Money Sim Cards to each beneficiary. BVTA members are currently going in batches of 200 to collect Sim Cards. BVTA and other associations have held meetings to discuss modalities to ensure that informal traders immediately get access to the sim cards. They started receiving their sim cards from Monday, the process is ongoing. Out of the names that were submitted to the Ministry of Women, Small and Medium Enterprises and Community Development, 75% were included. Bulawayo associations sent approximately 18000 names and 12000 names were approved to benefit in the cushioning fund. However, BVTA is concerned that some informal traders did not make it into the final approved list of beneficiaries. The organization calls upon the government to run a second call for submission of names in order to cushion those who did not make it to the current approved list of beneficiaries because these are also bonafide vendors and informal traders, who are equally affected by the COVID-19 lockdown. Issued by BVTA Information and Publicity Unit

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Delays on relief funds frustrates informal traders

Vendors and informal traders in Bulawayo say they have been hit hard by the adverse impact of Covid-19 and therefore desperately need the cushioning package announced by Government recently. A total of 1 200 SMEs, vendors and informal traders out of the 2 600 entrepreneurs registered under associations and the Bulawayo Chamber of SMEs have applied for the bailout. In an interview with Vendors Voice yesterday, Preety mpofu, an informal trader said they have not received the funds yet. “We hope we are yet to receive the promised fund, ” she added. Zimbabwe went on national lockdown on March 30 as part of emergency measures to curb the spread of Covid-19 pandemic and many businesses were closed except for those offering essential services. It is against this background that Government has come up with a cushioning package to assist businesses to recover from the impact of the lockdown. The cushioning package which is being administered by the Ministry of Public Service, Labour and Social Welfare is meant to provide mainly working capital to SMEs, vendors and informal traders.

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Informal traders confront government

IN A joint statement released on Monday, more than 20 associations said they are concerned about the delays in the payments of the cushioning grants that were supposed to help vendors and informal traders. “… We call on government through its relevant ministries to immediately release the cushioning fund as the situation is dire for many vendors and informal traders. We also call on government to state the proposed figures that will be disbursed. “ In the same vein, the government and local authorities must consult/involve the informal sector representatives in decision making before they make resolutions that affect the livelihood of informal sector players since now 85 percent of the nation is in the informal sector.”

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PRESS STATEMENT FROM INFORMAL ECONOMY TRADERS ASSOCIATIONS ON CUSHIONING FUND AND DEMOLITIONS

For Immediate release 27 April 2020 We the undersigned associations, concerned about the delays in the payments of the cushioning grants that was supposed to cushion vendors and informal traders; We call upon government through its relevant ministries to provide information on progress made so far. We also call on government through its relevant ministries to immediately release the cushioning fund as the situation is dire for many vendors and informal traders. We also call on government to state the proposed figures that will be disbursed. Press releases have stated that the expected amount is ZWL$200, we would like to state that the proposed figure is very paltry considering the prevailing prices of basic commodities. We would like to remind Government that our members are suffering from hunger in their houses and the truth is that there is no food in their houses, our members living with chronic diseases are at greater risk at this moment. Vendors and informal traders are aware of the dangers posed by #COVID19 and we are willing and ready to honour the directive to stay at home during this difficult time as a nation of Zimbabwe & the entire World at large but hunger is now another big disaster in households. We are now receiving cases of domestic violence because families are beginning to have fights due to shortages of food. We would like to let government know that some of most of our members will be not able to restock because all their little incomes have been depleted on food. We also strongly condemn the demolition and razing down of vendors and informal traders working spaces, without coming up with clear alternative designated trading spaces. In the same vein, the government & local authorities must consult/involve the informal sector representatives in decision making before they make resolutions that affect the livelihood of informal sector players since now 85% of the nation is in the informal sector. We also call for an immediate stop to the demolitions across the country. For example, in Gweru people were given till today (Sunday) to clear their stalls, as of tomorrow demolitions start. We hope government will urgently pay attention to the issues that we have raised in this statement Endorsed by: Vendors Initiative for Social Economic Transformation (VISET) Bulawayo Vendors and Traders Association (BVTA) National Vendors Union Zimbabwe (NAVUZ) WABAZ Women Alliance of Business Associations in Zimbabwe. Zimbabwe Applied Arts in Craft Association (ZAACA) Zimbabwe Chamber of Informal Economy Associations (ZCIEA) Zimbabwe Cross Border Traders Association (ZCBTA) Zimbabwe Informal Traders Council (ZITC) Zimbabwe Progressive Airtime Vendors Association (ZPAVA) Small Medium Enterprises Association of Zimbabwe (SMEAZ) 100% Empowerment Trust Chipinge Chamber of SMEs Combined Cross Border (CCB) Zimbabwe Vendors Association (ZVA) Zimbabwe Rapid Vendors Trust (ZRVT)

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