Promoting employment generation potentials of the informal sector : experiences from some African countries

Abstract

The main purpose of this technical publication is to propose policies and strategies that would enhance the employment creation potentials of the informal sector in Africa, in this regard, providing and improving upon an enabling environment by removing the major problems and constraints could assist in the more efficient functioning of the sector. Therefore, this study purports to examine and make recommendations on the main elements and policies constituting an enabling environment for the promotion and develop ment of the informal sector. The underlying contention of the argument is that the provision of an enabling environment for the development of the informal sector would facilitate and encourage: (i) the emergence and establishment of new micro enterprises; (ii) the expansion and growth of existing micro enterprises into small- and medium-scale enterprises; (iii) increase in productiv ity of existing and new enterprises; and (iv) promote and strengthen linkages with other sectors of the economy. All of these possibilities could contribute to creating and enhancing employment and income generation, thereby improving the welfare of the people.