Policy Briefs
What are the key drivers of Uganda’s persistent informal sector?
This policy brief presents the key drivers of informality in Uganda among informal businesses, household activities, and workers. The findings show that informality is driven by perceptions of formalisation costs, regulatory enforcement gaps in land and labour, unfavourable business environment and perceived benefits from staying informal.
Addressing informality therefore requires a progressive, incentive-based approach that involves more awareness campaigns informing businesses about costs, processes and benefits of formalization and increasing budget allocation to key regulators of land and labour.
Attached Files
File Action Key drivers of persistent informality in Uganda.pdf View - Version
- File Size 1.05 MB
- Published Mar 23, 2026
