Stimulating informal sector through vocational education in Botswana

The informal sector in Botswana, just like in many other developing countries, has evolved out of the existing economic conditions where the formal sector has not been able to generate enough employment opportunities. The sector has thus played a significant role in creating employment opportunities for this section of the population, therefore contributing to poverty reduction as well. As is the case with other developing economies however, the educational system in Botswana has not been very supportive of the informal sector in terms of equipping participants with technical and business skills to run productive business enterprises. There is an apparent gap between the current training set up and the needs of informal sector participants, which has resulted in poor performance and stagnant growth of most enterprises in the informal sector. An extensive training needs assessment survey is therefore recommended to identify the specific areas that need strengthening, including reform of institutional arrangements. It is important to acknowledge however, that training is but one aspect of stimulating performance and development of informal sector enterprises. It is imperative therefore, for strategies aimed at improving the performance of informal enterprises, to be all encompassing and complementary.