Informal sector in urban areas in Tanzania: some socio-demographic, economic and legal aspects

Urban settings worldwide are homes to the informal sector due to the sector’s vast potentiality in terms of employment and income generation. Very little is found throughout the literature on the socio-demographic attributes of the informal sector in Tanzania despite its contribution to the economy. This paper empirically profiles informal sector in urban setting in Morogoro, Tanzania by analyzing socio-demographic, economic and legal aspects of the sector and those involved. Data was collected from 80 respondents using a questionnaire. Data analysis entailed descriptive statistics and cross tabulation. The results reveal dominance of men in the sector, low levels of education, young (19-26 years) and married people dominating, use of family labour, willing to operate businesses at times and locations convenient to customers. The study further shows that 55 % of the activities obtained capital from owners’ own sources and 82.5 % of the activities operating were not licensed. The results further show that 50% of the activities /businesses surveyed were owned by families. Overall, the study asserts that the IS has a valuable contribution to the well being of the urban dwellers. The study recommends a need for addressing training needs and interventions by Local Government Authorities in the Informal Sector’s operations for better performance and contribution to the livelihood of those involved but also to allow the Local Government Authorities earn income in form of taxes.