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Co-funded by the European Union

Improving the resilience of the Informal Sector in Kigali

Location

Rwanda

Topic

Resilience and Recovery, Women's Economic Empowerment

Beneficiary

City of Kigali

Status

Completed

Year

2021

Context

The number of informal workers in the City of Kigali in Rwanda is likely to be around 275,000- 415,000 people, or about 40-60% of the Kigali’s total workforce of 690,907 people recorded in the 2020 Labour Force Survey [1]. Some of the key challenges for the informal workers include, among others, lack of coordination between government agencies responsible for labour and work conditions, lack of data and knowledge on the extent of the informal economy and the negative impact of Covid-19, infrastructural and security problems, low and irregular pay.

Objective

The ICR Facility supported the City of Kigali in conducting a study to understand the current state of affairs of the informal sector and based on that, developed an action plan to improve the resilience of the sector. The study provided a diagnostic of the informal sector economy, the challenges they face and the linkages to the wider local economy. It was designed to be participatory and therefore proposes well-informed and innovative strategies to support workers in the informal sector, especially in the context of the Covid-19 crisis.

 

Result

As a tangible outcome of this intervention, a participatory process led to the development of an action plan tailored to improving the business environment and resilience for various categories of informal workers, such as basket weavers, street vendors, and waste pickers. Through careful analysis of their livelihoods, needs, and barriers, the study provided practical and tailored recommendations to the local government.

 

Of particular focus was the assessment of challenges faced by women, youth, and other underrepresented groups in the informal economy, within the broader context of post-COVID recovery. These findings prompted the creation of designated spaces for informal street merchants, offering safer operating environments, especially for women.

 

The action plan’s recommendations are aimed at fostering inclusive growth and addressing the specific needs of different segments of the informal sector. By providing support and tailored solutions, the City of Kigali endeavors to enhance the livelihoods and economic opportunities for informal workers, contributing to the overall prosperity and sustainable development of the city.

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