Cape Verde informal workers shun social protection
Only 5.1% of estimated self-employed workers in Cape Verde were covered by social security in 2023.
In Cape Verde's informal economy, many self-employed workers like Zuleica Pereira in Praia's Sucupira market contribute to the National Institute of Social Security (INPS) to secure their future. However, others, like Maria de Fátima, a fish seller, do not register, viewing the monthly payments as an unaffordable expense given daily needs.
A 2024 INPS study identified insufficient income, inadequate payment methods, and uncertainty in informal markets as key barriers to registration. Marcelino Monteiro, INPS Planning and Studies Director, stated that 59.2% of respondents cited insufficient monthly income, while 52.2% did not prioritize INPS contributions due to available income.
The study also revealed that 54.3% of respondents lacked sufficient information about INPS benefits, and 45.7% cited job market uncertainty as a barrier. These factors, alongside financial capacity, influence the decision to contribute to social protection.
Why it mattersSelf-employed workers in Cape Verde face challenges in contributing to social security due to insufficient income and a lack of information.