No reliable informal sector statistics

The government struggles to provide accurate data on participation in the informal sector due to a lack of reliable transaction records for people engaged in the informal markets.

In an exclusive interview, Remington Technology Group CEO Navin Raju said that the government needs to establish mechanisms to effectively monitor the informal sector, particularly the Small and Medium Enterprises [SMEs].

"SMEs are the backbone of this nation, and it's essential to support them by providing technical, financial, and budgeting skills, as well as infrastructure and supply chain support.  

"The informal and subsistence economies here are substantial, even if they're not easily measured. The government cannot simply say it’s immeasurable—they need to develop a system to capture this data. It's vital to fix this and plan well," Mr. Raju said.

He added that without these improvements, other businesses would struggle to thrive.

"The informal sector is the backbone of this country and must be strengthened,”

Meanwhile, the 2023 Gross Domestic Products [GDP] reports from the National Statistical Office show that informal sector participation contributes nearly 10% to the Gross Domestic Product; However, these figures are from household income data, with no comprehensive surveys conducted to capture precise statistics.

Minister for Administrative Services Richard Masere agreed that informal sector participation plays a key role in the economy and requires more strategic government planning.

"We face challenges in obtaining accurate statistics because most informal sector participants operate on cash, making tracking difficult.

"Only by transitioning to a cashless society, where transactions are digital, can we effectively monitor these activities."

The government continues to face significant obstacles in creating policies and economic plans without an accurate picture of informal sector contributions.