Women Dominate Informal Sector -Survey

By Martin Nyirenda
Correspondent | Monday November 24, 2008 00:00

 

The results, released last week at Phakalane Golf Estate, show that the majority of informal sector businesses are in cities, towns and urban areas, adding that the major challenge facing the sector operators is non-payment for goods and services supplied to customers on credit.

The report also reveals that the major type of informal businesses is in wholesaling and retailing sectors. Ministry of Trade and Industry deputy permanent secretary Kedibonye Laletsang said that it is evident that the sector poses a challenge to the policymakers in terms of improving the working conditions of the people employed in the informal sector, increasing productivity of economic activities, developing training and skills and implementing appropriate regulatory frameworks, among others.

He said that it was his wish to witness the informal sector graduate to the formal sector, adding: 'The data will be adequately used in formulating and reviewing the existing policies, programmes and projects in order to improve the informal sector with the aim of gradually transforming some informal businesses into formal ones. Information from this survey will assist in informing the mentoring and evaluation of small businesses during the implementation of the National Development Plan 10(NDP 10).

He contended that the sector represents an important part of the economy and the labour market as it plays a major role in creating employment, production and income generation.The survey indicates that there were 40,421 informal businesses in Botswana with an increase of 72.3 percent from the 1999 ISS, which estimated 23, 545 informal businesses.Laletsang recoiled that unemployment could be reduced through the informal sector participation provided it is well supported and managed.

Presenting the 2007 ISS, Central Statistics Office Chief Statistician Ketso Makhumalo announced that females dominated the retail trade, real estate and business services and manufacturing, while the male dominated the construction, real estate and business service as well as retail trade.She indicated that in the past three years, more women than men have opened up businesses, adding that females are more likely to participate in the informal sector as own account workers than males.

She said that the data collected could be used to estimate the contribution of the informal sector to the Gross Domestic Product (GDP) and that it could also be used to identify the economic activities taking place in the sector.The assistance needed in the sector include better access to loans, provision of permanent sites from where to operate and marketing of goods and services.

The major difficulties facing the informal sector include non-payment of services and goods delivered to the market, high competition, lack of capital and equipment, while during the 1999 survey, unavailability of credit facilities, non-payment and lack of space remained the major hurdles facing the sector.

It also emerged during the survey that the majority of household heads are in the informal sector and that the majority of the people in the informal sector are aged between 25 and 49.At sixty, the survey suggests, more men become active with the activities of the informal sector perhaps after being retired from their formal employment.

Lisenda Lisenda from CEDA said that there is easy entry and exit in the sector, adding that there has been improved credit facilities since the advent of CEDA in 2001.He called for better access to loans and desired assistance with marketing of goods and services in the sector. Lisenda bemoaned that there is no permanent operational sites from where to conduct business, adding that given the high unemployment rate, people must be encouraged to go into self-employment.