AN ANALYSIS OF THE FACTORS INFLUENCING THE
EXCLUSION OF NON-FORMAL WORKERS FROM
THE MOZAMBICAN SOCIAL PROTECTION
SYSTEM

AN ANALYSIS OF THE FACTORS INFLUENCING THE
EXCLUSION OF NON-FORMAL WORKERS FROM
THE MOZAMBICAN SOCIAL PROTECTION
SYSTEM

DIONÍSIO CALISTO RECAMA

This thesis was an analysis of the factors influencing the exclusion of the non-formal workers
from the Mozambique Social Protection System (MSPS). It aimed at finding mechanisms
through which the MSPS could become more comprehensive and inclusive. The social
protection system only accommodates employees from the formal sector of the economy, which
constitutes the minority of the economically active population (EAP) and also of the
Mozambican people. So, in more than 25 million of Mozambicans, of which more than 15
million are above 15 years and are EAP, of which more than 87% are out of the formal sector
and, consequently, excluded from the MSPS. In this context, the research looked out to
understand why the MSPS excludes the non-formal workers? What are the implications of this
exclusion of the non-formal workers? How the excluded workers survive in situations of illness,
invalidity, old age or death? Which mechanisms can be adopted in order to make the MSPS
more comprehensive and inclusive? To constitute the sample, it was recurred to non-probability
sampling in its convenience and purpose type, in which had employees of the National Institute
for Social Security (NISS), Municipality Council of Maputo City (MCMC), non-formal
professional associations responsible and the non-formal workers, as the research participants.
To generate data, to the sample elements, the researcher administered a questionnaire and
interview containing closed and open-ended questions. To analyse and discuss data, it was
delimited to the use of interpretivism or constructivism approach in qualitative methodology.
For presentation, analysis and discussion, it was confined to the use of technical charts and
contends analysis. As guiding theories, the study recurred to the social protection and social
network theories. Through the use of the qualitative methodology, philosophy, procedures and
theories above, it was perceived that the MSPS managed by the NISS did not include the non-
formal workers because it lacked administrative organisation to include and manage them and
because bureaucratic aspects. The NISS considered all workers that were not working at
enterprises as the non-formal, without resources to contribute to the social protection system
and difficult to find them. However, some of them were salaried, clearly locatable, with enough
financial income to contribute to the system. Moreover, some of them were continuously in
relationship with some public institutions, namely, Ministry of Economy and Finance (MEF),
Ministry of Industry and Trade (MIT), MCMC and National Institute for Statistics (NIS), which
licensed and afterwards, collected fees and tax, interacted constantly and collected important
information from them, and so on. Therefore, this exclusion, besides having no objectively real
and valid reasons, condemned these non-formal workers to social and economic vulnerability in
the future when they are at social and economic risk, such as maternity, sickness, invalidity, old
age and/or death. To minimise the impact of these situations, the excluded workers adopted
informal systems for social security or constitute professional associations, through which they
face the maternity, illness, invalidity, old age and death difficulties. That is why the NISS must:
(1) develop strategic tools for the institutional management, by which should be guided in all its
actions to cover all workers, the formal or non-formal; for that, the NISS can (2) create
partnership with the non-formal professional associations and public institutions which interact
with them, because they know who and where are then, their financial and economic conditions;
(3) consolidate the use of Information and Communications Technologies (ICTs) to facilitate
the scanning and electronic storage process of historical information of the (not)submitted
contributions to reduce the contribution evasion and inactivity of employers and workers; and
(4) develop a training plan for their employees to identify with the strategic objectives and
challenges of the institution, just to mention a few proposals. Finally, Also, it is necessary to do
a feasibility study for (1) reimbursement of the Mozambican state with respect to its
contribution rate of the non-formal workers and other segments hitherto excluded; (2) create
fiscal mechanism to provide social pensions non-contributory, i.e., welfare pensions; (3) show
the possibility to define and regulate an explicit mechanism and purpose of upgrading the
amount of benefits that can be accrued from engaging non-formal workers into the social
protection system.

ZIMBABWE OPEN UNIVERSITY

2018