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Undergraduate Economic Review

Abstract

The notion of formalizing the informal sector in Zimbabwe is not new however; this paper asserts that although much is known on the subject, considerably little seems to be understood. This paper uses an extended literature review to characterize the identification of informality and explores the different approaches to formalizing informal activities. Furthermore, the concepts are contextualized to Zimbabwe’s environment as a way of articulating the reality of available options that may be integrated into the transition process. It emerges that there is diversity of circumstances in rural and urban settings, economic sectors, occupations and national contexts. In this regard, this paper proposes a framework in which government and society play a central role in transforming Zimbabwe’s informal sector to formalization and pave way for taxation thus broadening the country’s revenue. Critical issues include revision, design and implementation of law and policies that dissolute informality.

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