‘Informal sector curtailing productivity’

THE World Bank (WB) has urged Zimbabwe to formalise its economy saying high informalisation is suppressing productivity and long-term development.

In a report titled Zimbabwe Country Economic Memorandum on Boosting Productivity and Quality Jobs produced recently, WB said the country’s informal sector presented less opportunities for Zimbabwe’s economic turnaround to achieve its vision of becoming an upper-middle-income country (UMIC) by 2030.

“Over three-quarters of formal sector firms face competition from informal firms, which is significantly higher than in middle-income countries and peers in sub-Saharan Africa.

This story is for NewsDay subscribers.