Zambia Pushes Labour Market Reforms to Tackle Informal Economy
Zambia has unveiled bold labour market reforms aimed at addressing informality, which accounts for more than 70 percent of the country’s workforce and continues to constrain productivity, social protection, and industrial growth.
Labour and Social Security Minister, Hon. Brenda Tambatamba, said while the informal sector reflects the resilience and entrepreneurial spirit of Zambians, it has become a structural barrier to inclusive growth.
She was speaking during a high-level session on Harnessing Skills for Productivity and Inclusive Industrial Growth at the Industrial Skills Week Africa Summit 2025.
“Over 70 percent of Zambia’s workforce is informally employed, contributing to low labour productivity. The informal sector often operates outside the scope of formal systems and faces constraints such as limited access to finance, inadequate social protection, and weak linkages to formal value chains,” Ms Tambatamba said. “Confronting informality head-on can only be achieved by equipping our people with the right skills, embedding innovation, and ensuring that all workers are protected. Zambia is proud to lead this conversation.”
Figures from the 2023 Labour Force Survey show Zambia’s working-age population at 11.6 million, with just under 4 million in employment. Only 1.2 million were in the formal sector, while over 3 million were informally employed. Social security coverage stood at just 24.4 percent of the employed population.
Guided by the Eighth National Development Plan (8NDP), the government has rolled out a package of measures to bridge the gap. These include a review of the National Employment and Labour Market Policy to cover formal, informal, and platform workers, as well as amendments to the Employment Code Act of 2019 to address emerging labour dynamics. A review of the Apprenticeship Act is also underway to modernise workplace learning and align skills with industry demands.
At sector level, reforms include strengthening the Skills Advisory Committee, developing a Critical Skills List, and investing in digital labour platforms to connect workers with opportunities and provide data for planning.
Ms Tambatamba stressed that addressing informality requires collaboration, through tripartite consultations with employers and trade unions, a whole-of-government approach under the 8NDP, and strategic engagement with development partners and the private sector.
She further noted that Zambia’s efforts align with global and continental frameworks, including the UN Sustainable Development Goals, the African Union’s Agenda 2063, and the International Labour Organisation’s Centenary Declaration for the Future of Work.
“These frameworks highlights the urgent need to equip citizens with skills, protection, and opportunities in an evolving world of work,” the Minister said.
