Informal Sector Survey 1999

The Informal Sector Survey was designed by the Central Statistics Office (CSO) to answer a number of key policy questions on the existence of informal sector in Botswana. This was under perception that in recent years, there is rapid multiplication of informal sector activities all over Botswana and that informal sector has grown over time.

At the time of planning the survey, the only current relevant data sources within CSO were the 1991 Population Census, the 1994 Household Income and Expenditure Survey and the 1995/96 Labour Force Survey. Although this was the case these were not specific to informal sector but rather proxies that could be used.

It is acknowledged that in many developing countries, contribution of informal sector to household income is so significant to an extent that in some of these countries it exceeds that of formal sector. Employment creation in the informal sector is another factor that makes a significant contribution to the economies of developing countries. Indeed, for many people informal sector is a major domain in which they make a humble living.

The conditions of Botswana's informal sector activities in detail are not known empirically. The ISS was, therefore intended to collect data that would provide information required for shedding light on, among others, the following:

i. Contribution of informal sector to the economy's total output;
ii. Types of major activities in the informal sector;
iii. Proportion of workforce employed in the informal sector;
iv. Proportion of household income generated by the informal sector;
v. Size of capital investment in informal sector;
vi. Extent of informal sector's contribution to the competitive market in the economy as a whole.

In broad terms this will also provide data to complement existing data collected through 'Formal sector' surveys. All these are expected to broaden and improve data coverage to enable monitoring and strengthen on the National/Regional technical expertise.

The working definition of "informal sector business" was tailored to enterprise not registered as a company; 5 or less paid employees; informal accounts or none; expenditure not easily distinguishable from household expenditure; enterprise often temporary or mobile or in owner's home.