14 important measure to integrate the informal sector into the national economy
stimulate the integration of the informal sector into the national economy, the development plan attaches special importance to activating policies and mechanisms
Shrouq
The Egyptian government has taken care of youth and offers them many initiatives to stimulate the integration of the informal sector into the fabric of the national economy.
According to the Ministry of Planning and Economic Development, the informal sector currently constitutes about 40% of the gross domestic product (about 2.6 trillion pounds).
In order to stimulate the integration of the informal sector into the national economy, the development plan attaches special importance to activating policies and mechanisms, including:
1- Introducing the advantages of joining the formal sector in terms of the possibility of dealing with the banking system (financial inclusion).
2- Benefiting from the initiatives offered by the banking sector, as well as the possibility of export.
3- Working to unify the concepts in the informal sector policies.
4- Granting financial facilities to motivate people to join the formal sector, such as the initiative of the political leadership to grant a five-year tax exemption to those who join the official market.
5- Facilitating the procedures for doing business in terms of obtaining licenses, registration, building permits, and the cost of doing business in general.
6- Providing free lands or at nominal prices in the offered industrial complexes.
7- Expanding the umbrella of social insurance to cover workers in the informal sector.
8- Applying comprehensive health insurance to cover workers in this sector.
9- Providing technical and financial support to micro-enterprises to improve their production efficiency.
10- Reviewing labor laws to give them sufficient flexibility to employ workers in the formal sector.
11- Paying attention to improving the quality of education and ensuring that its outputs are consistent with the requirements of the labor market.
12- Encourage interdependent relations between the formal (organized) sector and the informal sector.
13- Increasing applied studies and field research concerned with studying and analyzing the economic and social dimensions of this sector, and ways to accelerate the process of integration into the national economy.
