Minister Alpha Advocates for Formalizing Informal Sector

By Abdul Rahman Bah

During the weekly press briefing hosted by the Ministry of Information and Civic Education on Tuesday, October 29, 2024, at the Miatta Conference Hall in Youyi Building, Freetown, Minister of Trade and Industry Alpha Ibrahim Sesay passionately addressed the urgent need for economic progress through the formalization of the informal sector, which constitutes an astonishing 90% of businesses in Sierra Leone.

Minister Alpha emphasized the importance of meticulously documenting and nurturing the “Big Five” sectors identified in the comprehensive development program, asserting that these sectors have the potential to drive transformative economic growth.

Highlighting a troubling statistic, he pointed out that a significant portion of the population operates without formal business registration, which deprives them of essential financial services. This issue is compounded by the fact that only about 2% of the populace is enrolled in a pension scheme, indicating a precarious financial situation for many citizens.

The Minister outlined a clear, actionable roadmap designed to facilitate the registration and support of small and medium-sized enterprises (SMEs), setting an ambitious target to register over 4,000 SMEs in the coming year. Central to this initiative is a commitment to innovation, particularly in technology and climate change, which are viewed as critical catalysts for future economic growth.

In his address, Minister Alpha announced a range of grants and projects aimed at strengthening SMEs across various sectors, including agriculture, the creative arts, and tourism. He highlighted the importance of establishing credit unions and fostering collaborative partnerships with international organizations as vital strategies for enhancing support for these enterprises.

A passionate appeal was made for a comprehensive review of the existing SME policy and Act, with a focus on updating definitions and prioritizing the needs of women within all development initiatives. This reflects a broader commitment to inclusivity and gender equity in economic policies.

Additionally, the MUNAFA Fund was spotlighted as a crucial initiative aimed at empowering informal sector workers and SMEs. Strategic plans are being developed to broaden its reach and amplify its impact within the community.

Minister Alpha stressed the urgent necessity to formalize the informal sector, asserting that this is a fundamental step toward achieving economic stability and sustainable growth. Realizing this goal will require the establishment of robust support structures and improved access to financial resources.

His emphasis on innovation, particularly in relation to technology and climate change, showcases a visionary approach to economic advancement. Furthermore, prioritizing women’s roles in policy development illustrates a steadfast commitment to fostering inclusive growth.

In conclusion, Minister Alpha underscored the imperative of updating the SME Act and related policies to align with current economic realities. This alignment will ensure that the evolving business landscape receives the necessary support. The initiatives and plans outlined present a comprehensive vision for economic prosperity, strategically addressing the challenges facing SMEs and the informal sector through a structured and forward-thinking approach.