What is the role of informal sector in your country?

The informal economy consists of independent, self-employed small-scale producers and distributors of goods and services. Workers in this sector are for the most part not covered by the country’s labour laws and regulations.

Role of informal sector

• Creation of employment opportunities
• Reduction of foreign exchange outflow
• Production of affordable goods
• Produce for local market
• Provides skill development as it encourages training of labour market
• Development of entrepreneurship skills
• Contributes revenue through taxation
• Promotes technological advancement
• Enhances fair distribution of income
• Widens consumer’s choice by increasing variety of products.