Pension coverage extension as social innovation in Zambia: Informal economy workers’ perceptions and needs

With the enactment of Statutory Instrument No. 72 (2019), Zambia is extending pension coverage to workers in the informal economy. We present evidence on the experiences and perspectives of domestic workers and bus and taxi drivers regarding pension scheme coverage in Zambia. We use data generated through interviews and focus group discussions. The analysis shows that pension schemes, as conventionally designed for formal economy employees, are not compatible with the values, beliefs and needs of informal economy workers, and pension coverage was not a priority for them. As a form of social innovation, extending access to pension coverage had a lower relative advantage and lacked incentives to attract informal economy workers. We propose a member-centred framework for initiating the extension of social security coverage to informal economy workers.