Why Informal sector contribution is low to economic growth in Zambia

Why is it that despite there being many people involved in the informal sector its overall contribution to economic development in Zambia is minimal? What should be done to enhance its contribution to national development?

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Zambia’s private sector development dialogue is inextricably linked to debates about its Informal Sector, which, according to most estimates, employs about 90% of its labor force. While some data on informal sector workers is available and has been used to understand the nature of the informal labor force, little is known about enterprises that constitute the informal sector. It is against this backdrop that this paper discusses reasons to why the informal sector in Zambia overall contribution to economic development is minimal despite having many people as compared to the informal sector.

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