adminThe Poverty Income Consumption and Expenditure Survey, which the Zimbabwe National Statistics Agency released recently, found that an estimated 3,7 million people were involved in informal sector activities.
Zimbabwe has an estimated 12,9 million people according to preliminary results from last year’s national census.
The survey found that the informal sector contributed 19,5 percent to the Gross Domestic Product during the period.
Constituting urban and rural, small-scale and self-employed activities, with or without hired labour, the informal sector is usually not measured in official Government data.
The Zimbabwean economy is largely informal, dominated by small to medium enterprises, with analysts urging Government to come up with strategies to organise and generate revenue from it.
Zimstat found that at least US$1,7 billion was generated in the sector during the period, with the bulk of the volumes earned through resale of purchased goods.
“The PICES 2011/12 Survey reveals that about 3,7 million people in Zimbabwe are involved in informal sector activities,” read of the report.
The study showed that economic challenges the country went through in the past decade contributed to the high number of people being involved in informal sector activities.
With major companies closing shop, relocating or scaling down operations, the majority of employees found themselves forming or joining SMEs to survive.
The survey found that at 54,6 percent, women contributed the bulk of people working in the sector while youths aged between the ages of 15 to 34 also dominate.
According to the survey, the majority of people involved in informal activities are in Manicaland province, followed by Midlands and Masvingo respectively.
Matabeleland South and Matabeleland North provinces respectively have the least number of households involved in the sector.
With challenges facing economic revival efforts in Zimbabwe, the informal sector is expected to remain shouldering the economy.
Political uncertainty over elections due to be held soon as well as policy inconsistencies continue to affect investor confidence resulting a complexity of challenges which the country is struggling to extricate itself from. – New Ziana.
Online Reporter