Lives Shattered; Hustlers Left Out Of The Safety Nets

By Shingirai Vambe

Waking up from the deep sleep in the middle of the night, the phone ringing as calls and messages trickling in from colleagues and associates of the fire accident that occurred, at the market day after restocking my shop with wares and knowing I have not been insuring my business, the crash course in reality.

This one among many other accidents that have occurred around the country, Glen View area 8 market  has been destroyed on several occasions, exposing the harsh economic realities and fear that has resulted to many not having safety nets.

Thomas Gurajena one of the victims of the fire that broke out at Mbare Musika, in Harare Zimbabwe has highlighted the crucial importance of insurance coverage. The accident has resulted in significant expenses, lost wages and a daunting recovery process.

However, Gurajena’s ordeal is worsened by lack of adequate and suitable insurance coverage. The financial burden is pushing him to the brink of financial ruin.

Zimbabwe has since migrated from formal to informal way of trading and operation of business by over 70% exposing insurance companies, lack of innovation and business approach, meeting and addressing people’s needs in their daily lives. Majority of informal traders don’t have either medical insurance nor life assurance.

The National Social Security Authority (NSSA) has highlighted on the schemes they intend to put in place, only 4 out of 9 schemes are active and there are plans in place to include coverage to informal traders, expected to start running in the year 2025.

However, there has been a shift with over 60 percent of the population being youth, and not covered, due to various reasons which include economic hardships.

Insurance and Pensions Commission, Acting Commissioner General, Robson Mutangadura told the Post on Sunday Newspaper that there is lack of product innovation in the market where entities are focusing on re-packaging existing products and giving them various names.

“We need to come up with products that speaks to current realities in our market. For example, two pots pension system allow people to enjoy their lifetime savings when they are still able. More can be done including financial literacy and deliberate efforts to include women in the financial markets,” added Mutangadura.

Narrating how much he is owing his suppliers, and how he survives taking care of his family, his mother and father, suffering from high blood pressure and sugar diabetes, Gurajena bemoaned the country’s economic status failing to include women, youths and hustlers of today some making huge monies while other are surviving from hand to mouth, both parties are either losing from the other, either the state or citizens.

“Uptake of insurance products by women is lower compared to men. I think this emanates from cultural issues, men taking care of wife and kids, issue of access to financial markets and literacy remains a challenge,” said Mutangadura.

Majority of entrepreneurs who had their markets destroyed by the fire are women. to date no information has been gathered relating to the cause of the fire at the biggest market in Zimbabwe.

Insurance cover, schemes and packages that suite the current market, individuals with the reduced life expectancy is needed for the provision of safety nets in all circumstances.

NSSA told the Post On Sunday Newspaper that their pilot project of covering the informal sector will be done in 2025 after the Zimbabwe Statistics Agents (ZIMSTATS) complete the economic census, which they have already done with the mapping and currently working on the listing exercise.

Meanwhile, the collection of data, quality data remains questionable as many are withholding information relating to their income and expenditures and annual turn overs.