Title: Formalisation of informal economies and sustainable local development in Africa: case of Egypt and Mozambique
Authors: Prosper Bazaanah; Lydia Chilaule
Addresses: Department of Anthropology and Development Studies, University of Johannesburg, South Africa ' Department of Politics and International Relations, University of Johannesburg, South Africa
Abstract: Informal economic livelihood is an essential defining characteristic of economic relations within and across African countries. The dominant approach towards Africa's growing informal economies has been the formalising of informal economic livelihoods as catalyst for achieving sustainable local development. However, such approach has only pushed informal actors further deep into informality as they were theorised or created based on the experiences of Europe and not those of Africa. Using the desk review method, this paper revealed the historical trajectories and approaches to formalisation of informal economic activities in Egypt and Mozambique, and the need for these approaches to be carefully rethought and reshaped to accommodate informal livelihoods and sustain local development. Egypt and Mozambique's informal sectors are born out of persistent poverty and unemployment, weak governance and unpredictable socio-economic climate. Attempts by governments and development actors to address the persistent challenges confronting their informal sectors should be in line with conditions existing in both countries.
Keywords: formalisation; informal economies; sustainable local development; Africa; Egypt; Mozambique.
African Journal of Economic and Sustainable Development, 2021 Vol.8 No.2, pp.140 - 150
Received: 18 Sep 2020
Accepted: 16 Nov 2020
Published online: 26 Apr 2021 *