A study on the Informal Sector with a view to Formalisation

Abstract

This 2015 report critically examines the nature of business informality and bring fresh insights into the formalisations agenda in some African countries. Specifically, the study examined the concept, nature and causes of business informality. Take stock approaches, initiatives, experiences, challenges and lessons in promoting business formalisation. The methodology adopted was qualitative- descriptive, integrating literature review, a survey of 179 informal operators in Tanzania, field visits to Ghana, Kenya, Rwanda and Tanzania to undertake interviews and focus group discussions with informal operators and their associations, local and central governments. The study has established that different approaches have been used in different countries to reduce the proportion of the informal economy with different results. These include, building awareness, capacity and productivity of operators, providing workspace, simplification of regulations and/or development of special policy, regulatory and institutional framework for micro enterprises and enforcement of regulations