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‘Social security should cover informal sector’
Publish Date: Feb 17, 2014
‘Social security should cover informal sector’
Archbishop Cyprian Lwanga launched the report
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By Brian Mayanja

National Catholic Commission for Justice and Peace is asking the government to consider covering people engaged in informal sector under social security systems.

The commission in its new report recommended that all social security schemes should cover all different components of social security including the informal sector.

The report pointed out particularly areas which need much attention in informal sector. They include old age, unemployment, sickness, work injury and loss of a main income earner.

“The informal sector should establish and get the capacity to run its own social security scheme. The scheme for informal sector should be run by an Act of Parliament. Government should also identify a ministry directly responsible for the informal sector,” a report says.

 The Archbishop of the Kampala diocese, Dr. Cyprian Lwanga launched the report at a function held at Nsambya Catholic Secretariat.

Partick Okello, the assistant Commissioner, ministry of gender, labour and social development said there is limited legal protection in the informal sector, leading to exploitation of many Ugandans. 

“There is a need to have in place well balanced laws and policies to regulate and protect the sector,” Okello said.

The Catholic commission’s report on informal sector comes at a time when the Uganda Bureau of Statistics (UBoS) is also reporting that the sector is the fastest growing segment of the economy.

UBoS said the number of businesses operating informally is multiplying at a speed that is far greater than the pace of enterprises that mutate into formal operations annually.

 “Informal sector is the fastest growing sector in Uganda, accounting for 43 per cent of the total economy,” UBOS said in its report.

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