The informal sector is always seen in a positive light by Africna governments, as these people are reducing the burden on government that they would otherwise become.But the point is being missed.
Firstly, these people are either refugees, rural people who have moved into urban areas in hope of achieving their dreams, or purely uneducated and unskilled people who have no choice. Consequently government does not plan for their existence. On the one hand these governments want and need the informal sector, but on the other they do not want the chaos that generally surrounds these informal traders.
But what do they do to prevent this? Have they developed new town planning standard to accommodate these trader? If they have created trading areas for these traders, are they in close proximity to their customer? Is there the necessary infrastructure available such as water, sewage, electricity, that would allow them to improve their business and perhaps grow out of the informal sector?
We need a creative approach to policy creation in the informal sector. We need better government that is thinking further than tomorrow.
To learn more about this author, visit Rob Smorfitt's Website.
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Rob Smorfitt
(Visit Rob's Website)
Based in Pietermaritzburg, South Africa.
Married with 3 children (22, 21 and 14).
Have an MBA and am currently doing a PhD
in entrepreneurial success. I have been
self employed since 1982. I have started
26 and bought 5 businesses since then.
Most were sold again and a few were shut
down because of a lack of profitability.
Many were run by staff or family while I
worked in full time employment in my
bigger businesses. 6 books written in SME
and Project Management educational field.
Written articles for various magazines,
newspapers and websites.
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