The informal sector in Mogadishu

A. A. Aboagye

The main objective of the study was to examine the possibilities for employment promotion in the informal sector and to initiate policies and projects to assist its development. The study also provides a detailed analysis of employment characteristics of informal activities, the various constraints as well as institutonal factors affecting the development of the sector. It emphasises the need for significant institutional changes and the development of a well-defined strategy to promote the sector. More specifically, the study recommended the strengthening of the Private Enterprise Development of the Ministry of Industry through provision of adequate support for staff development and training; a joint programme of action by various ministries to initiate training programmes adapted to conditions in the sector; the setting up of relatively small demonstration centres in Mogadishu for a selected number of activities to develop managerial skills and the establishment of efficient channels for credit through increased participation of the Somali Development Bank and setting up of a system of guaranteed loans for enterprises in the sector.