Desyalew Mekonen, K., Paulos Genetu, Y. and Meseret Legese, F. (2016) ‘Women’s Livelihood in the Informal Sector: Analysis of Micro Sellers or “Gullit” in Addis Ababa City, Ethiopia’, 6(8).
The authors commenced their writing by linking economic failure with the alarmingly growing level of unemployment/joblessness in Ethiopia. The informal sector expansion is linked with a shortage of formal employment. For informal sector definition, the authors adopted the definition provided by ILO that represents the conceptual basis of informal sector activities. According to ILO, the informal sector is.
“…all small-scale activities that are normally semi-organized and unregulated, use simple labour intensive technology…. undertaken by artisans, traders and operators in work sites such as open yards, market stalls, undeveloped plots, residential houses, and street pavements… not legally registered and in most cases do not have licences from local authorities for carrying out businesses…”(ILO, 1972)
The paper focused on the common form of informal activities in Addis Ababa city including petty trading, street food vending, selling crafts, collecting, and bartering of secondhand items. Specifically, it aimed at addressing the nature of informal sector women engaged in and associated challenges. The study employed A cross-sectional qualitative design to examine the livelihood situation of women who engaged in the informal sector in Addis Ababa City. Primary data were collected using in-depth interview, observation, and case study.
The study found that lack of educational attainment is one of the major causes that exacerbate women’s engagement in the informal sector. Most of the study participants are illiterate and some of them attended school to elementary school, as a result they don’t have any other means to earn their living. This shows that education is an important means to have a skilled labour force, and enables individuals to have alternative means of livelihood. The paper also examines how social capital influences women engagement in the labour market. Accordingly Idir and Ekub, are found to be the well known indigenous social networks available for women in the informal sector. Idir is basically for burial purposes to collaborate economically during mourning. Ekub, is a rotating credit service promoting saving habits and credit service to its members.
Regarding access to formal financial services, the study revealed that women in the informal sector do not have access to credit service. Even when it’s available, some of the study participants mentioned that they don’t want to take credit due to lack of business skill on how to manage it. The following is quoted from the response of one of the study participants,
‘I don’t want to get involved in any credit system because it is difficult to return the money back by engaging in this work.. I don’t have any idea how to begin another better business activity. So, I don’t want to get into trouble …’
Moreover, women in the informal sector are found to be vulnerable to shocks and security issues. Some of the products they sell in ‘Gullit’ including tomato and onions are exposed to spoilage and thereby they won’t be able to cover their daily lives.
Finally the author recommended the government and Addis Ababa city Administration shall facilitate a condition for women engaged in the informal sector to have access to Credit service, equip them with required technical skill and support them transform into formal business undertakings.