The following are some policy and program areas that a local government could examine in addressing the informal eocnomy within a LED strategic planning process:

Local Government Infrastructure Issues

• Hives/incubators for assisting high growth informal economy sectors

• Markets (within this include allocations policy, rentals, etc.)

• Infrastructure provision for traders (e.g., storage containers, tables, etc.)

• Housing in and of itself often assists business development

• Good infrastructure provision in informal settlements (i.e., water, sanitation)

• Transport issues

Local Government Management Issues

• Area-based management, i.e., good management of areas within which informal activities are found.

• Institutional assessments. The objective should be to identify where there are resource room to address the informal economy; where are the resources? This should be followed by integrated management of the informal economy to ensure the articulation of all points within the Council dealing with the informal economy, for example:

  • Regulation and control issues

  • Information systems     

  • Health issues

  • Safety and security issues

• General bureaucracy reduction programs, i.e., better business environment  including a review of internal procedures and regulations

Economic/Institutional Issues

• Sector-based support for sectors of the informal economy with growth potential

• Networking opportunities including co-operatives for economies of scale

• Support for informal sector organizations

Resource Provisions (PPP)

• Training

• Access to savings facilities

• Access to credit

• Support for small business

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