LocationsSierra Leone launches strategic national action plan to formalize informal enterprises .
November 5, 2024
Digntaries at the at the launch of launch of the strategic national action plan to formalize informal enterprises in Sierra Leone.
In a significant stride towards sustainable economic growth, the Government of Sierra Leone has launched a transformative roadmap to formalize informal . Led by the Ministry of Trade and Industry, the National Action Plan for Enterprise Formalization was developed under the through the “Supporting Informal Enterprises Transition towards Sustainable Growth and Formalization in Sierra Leone” project. The project is jointly implemented by UNDP Sierra Leone and International Labour Organization with funded by the European Union and the Organization of African, Caribbean and Pacific States (OACPS).
This comprehensive roadmap seeks to transition a significant portion of Sierra Leone’s economy, which currently relies heavily on informal enterprises, into the formal sector. By doing so, the initiative aims to promote sustainable growth and bolster economic resilience across the nation. The National Action Plan delineates essential strategies for integrating informal businesses, which account for about 90% of the economy, into a formalized framework.
Alpha Sesay , Minister of Trade and Industry
Speaking at the launch , the Minister of Trade and Industry, Alpha Sesay said the formalization road is a significant step to uphold development. Adding that the country’s economy is characterized by a dual structure of the informal sector with ninety percent and a smaller number for the formal sector citing mining, agriculture and access to financial services, social protection and market opportunities, and its sustainability the minister emphasized aligned with sustainable development goals cluster eight(8) which aims to promote sustained, inclusive, and sustainable economic growth.
UNDP Resident Representative, Fredrick Ampiah underscored the transformative potential of technology in this formalization effort. “Digital innovation can bridge gaps in education, market access, and financial inclusion,” he stated. “By leveraging technology, we not only foster the growth of enterprises but also align them with sustainable practices, significantly contributing to the United Nations Sustainable Development Goals (SDGs).” He also describing the roadmap as a catalyst for job creation and economic resilience.
Fred Ampiah, Resident Representative, UNDP Sierra Leone
Speaking on behalf of European Union Delegation in Sierra Leone, the Team Leader for Private Sector Development and Trade ·Mr., Kotin Nichola , expressed their commitment to creating a more resilient and inclusive economy for the country by empowering small businesses and entrepreneur to contribute to the nation’s prosperity.
Through the EU funding, two financial institutions, to LAPO and APEX Banks have each been awarded a grant of $150,000 dollars to develop innovative financial products tailored for SMEs and has also provided funding to support start-up incubators and financial intermediaries, aiming to widen access to essential resources for small enterprises.
The ILO representative, Manato Tonderai noted that, as engines of job creation, SMEs are pivotal to economic growth . However, he highlighted the obstacles these enterprises face, particularly around access to finance, regulatory support, and business incentives, which prevent many from transitioning to the formal economy. To counter these challenges, ILO has pledged to support efforts such as helping them access new opportunities, registration process to create a more inclusive, resilient business environment for informal enterprises to thrive.
Mr., Kotin Nichola , Team Leader for Private Sector Development and Trade of the European Union Delegation in Sierra Leone
The ILO representative, Manato Tonderai noted that, as engines of job creation, SMEs are pivotal to economic growth . However, he highlighted the obstacles these enterprises face, particularly around access to finance, regulatory support, and business incentives, which prevent many from transitioning to the formal economy. To counter these challenges, ILO has pledged to support efforts such as helping them access new opportunities, registration process to create a more inclusive, resilient business environment for informal enterprises to thrive.
Minister of Labour ,Mohamed Rahman Swaray reiterated the importance of the informal sector to Sierra Leone’s economy, stressing that President Bio has prioritized efforts to bridge the gap between formal and informal contributions to social security. Highlighting ongoing collaborations with NASSIT and ILO to establish a social safety net, he emphasized the government’s commitment to national policy enactment that would bolster these enterprises’ security and stability.
Minister of Labour ,Mohamed Rahman Swaray
About the project
The Supporting Informal Enterprises Transition Towards Sustainable Growth and Formalization in the African, Caribbean and Pacific Regions project with funding from European Union is implemented in Mozambique, Sierra Leone, and Solomon Islands by UNDP and International Labour Organization in partnership with the Organization of African, Caribbean and Pacific States (OACPS). The project aims to support the informal businesses in the three countries to grow, formalize, and access better services and opportunities
“Digital innovation can bridge gaps in education, market access, and financial inclusion,. “By leveraging technology, we not only foster the growth of enterprises but also align them with sustainable practices, significantly contributing to the United Nations Sustainable Development Goals (SDGs).”Fredrick Ampiah, UNDP Resident Representative
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