Heritage

• Formal sector


  Jobs that the government regulates and offer benefits such as social security, health insurance
• Formal sector


  • Employees work for fixed hours
  • Company pay taxes
  • Registered brands
  • Fixed salaries
  • Job description are clearly stated
  • Involve official company register
  • Termination of conditions
  • Annual leave awarded
• Informal sector


  Part of any economy that is neither taxed nor maintained by any form of government
• Informal sector


  • Absence of written rules and agreements
  • Absence of tax payment
  • Absence of bank account
  • Absence of medical benefits
  • Absence of paid leave
  • Little capital
• How the informal sector has contributed towards economic development in Zimbabwe

  • Employment creation
  • Bringing foreign currency
  • Infrastructure development
  • Goods provision to the nation
  • Improved standards of living
  • More income to the local people
  • Encouraging tourism
  • Improvement ties between Zimbabwe and surrounding countries
• Challenges faced by the informal sector in Zimbabwe

  • Capital constraints
  • Corruption
  • Viability challenges
  • Poor skill
  • Political developments
  • Lack of policy framework
  • Nepotism
  • Sanctions imposed in Zimbabwe
• Solutions to challenges faced by the informal sector in Zimbabwe


  • Provision of loans
  • Legislation to support their existence
  • Encouraging the informal sector through media
  • Marketing goods from informal sector through media
  • Introducing taxes to informal sector
  • Marketing goods from informal sector through media
• Formal sector


  Jobs that the government regulates and offers benefits such as social security numbers, in contrast to the informal sector
• Characteristics of formal sector

  • Employees work for fixed hours
  • Formal contracts exist between companies
  • Companies pay taxes
  • Registered brands
  • Fixed salaries
  • Annual leave awarded
  • Huge capital investments
• Informal sector


  Part of any economy that is neither taxed nor monitored by any form of government
• Characteristics of informal sector

  • Absence of written rules in agreement
  • Absence of medical benefits
  • Absence of paid taxes
  • Absence of bank accounts
  • Absence of paid leave
  • Little capital
  • Absence of tax payments
• How the informal sector has contributed towards economic development in Zimbabwe

  • Employment creation
  • Earning foreign currency
  • Encouraging tourism
  • Providing infrastructure
  • Good provision to the nation
  • Improved standards of living
  • More income to the local people
• Challenges faced by the informal sector in Zimbabwe


  • Poor policy framework
  • Nepotism
  • Poor skills
  • Viability challenges
  • Changes in national and global technologies
  • Political developments
  • Sanctions imposed on Zimbabwe
• Solutions to challenges faced by the informal sector in Zimbabwe


  1. Provision of loans

  2. Legislation to support their existence

  3. Encouraging the informal second-hand market

  4. Encouraging the informal sector to register

  5. Introducing taxes to the informal sector

  6. Promoting formation of associations among informal businesses for more centralized control