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Informal Sector Skills
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Informal Sector training needs, Indigenous/traditional skills &
Strategies for skills development in the informal sector
September 2012
Prepared by:
P. O. Box 46181
Gaborone
Phone: 267 3935758
Fax: 267 3935757
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FOREWORD
One of the key objectives the Botswana Training Authority (BOTA) is to provide
advice in vocational skills development in Botswana. It is therefore my pleasure to
share the result of the “Consultancy for the Study of the Informal Sector Training
Needs, Indigenous/traditional skills and development of strategies for skills
development in the Informal Sector”.
Over the years as shown by past Central Statistics Office (now Statistics Botswana)
Labour Force Surveys, the informal sector has grown very fast and in some
instances doubling up in between the 10 year periods of the surveys. It is therefore
becoming a very strong economical sector as it is largely a self reliance activity since
most people engaged in it are self employed. Another important aspect of this study
was to identify indigenous or traditional skills as some refer to it. Many Batswana
have indicated and shown knowledge in traditional livelihoods methods whose skills
cannot and were not obtained through the formal training system. BOTA has in the
process developed a programme of recognizing skills from individuals through
assessments of such. This is commonly referred to as Recognised Prior Learning
(RPL) and Recognised Current Competencies (RCC) and it is a growing
phenomenon around the world.
BOTA then contracted Global Consult Pty (Ltd) with task to examine the skills needs
in the informal sector and to also assess their magnitude and impact as well as
establish their potential benefits for contributing to sustainable livelihood. The study
was to produce a list of skills required in the informal sector, including indigenous
skills that would promote growth in citizens’ standard of living. . The result of the
study, as well as the proposed strategy would assist to guide our nation in developing
such skills. The study concludes with an Informal Sector Skills Development Strategy
as a way forward.
As we gear up to make our country’s human resource globally competitive we believe
this study and proposed strategy is an addition to those efforts. Specifically the study
recommends for a structure to handle skills development in the informal sector in our
Human Resource Development Strategy Implementation.
Kind regards
Mrs Magdeline T. Motswagole
Acting Chief Executive Officer, BOTA
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Executive Summary
Introduction
1. Over the years, Botswana has been demonstrating a strong interest in the informal
economy as one of the routes towards building sustainable livelihood. Commonly referred to as the informal sector (IS) the informal economy provides opportunities
for the absorption of poor and less educated people who cannot find employment in the formal economy. The IS is also a destination of choice for those who opt to
venture into entrepreneurship and choose not to seek formal employment as well as those with jobs in the formal economy but seek to augment their income through
some activity in the IS.
2. A number of studies by the Central Statistics Office (CSO) were carried out with the aim of developing a comprehensive understanding of the IS. These studies have
confirmed the growth of the IS in Botswana and clarified the nature of its diverse activities across all economic sub-sectors, especially in retail, manufacturing and
service sectors. Like in other countries, the IS is dominated by young, less educated and poor people, mainly women in both urban and rural areas.
3. This study was initiated by the Botswana Training Authority (BOTA) and contracted
to Global Consult. It was commissioned to examine the skills used in the informal sector, assess their magnitude and impact as well as establish their potential benefits for contributing to sustainable livelihood growth. The study aimed to produce a list of competencies, including indigenous skills that would promote growth in citizens standard of living. The study explored the training needs of the IS and used facts gathered to develop the IS Skills Development Strategy.
4. Different sources of information on IS activities were reviewed in general. Some specific literature on skills development for the IS in identified countries was reviewed in order to draw lessons for benchmarking Botswana’s proposed approach to IS skills development.
Study Methods
5. Both qualitative and quantitative approaches were used in this study. For example,
qualitative phenomenological interviewing was employed to explore participants’ perceptions, experiences and ideas. This was complemented by close-ended questions that drew additional quantitative data.
6. In order to gain a sample that was representative of different enterprises and locations, eleven (11) sub-sectors were selected based on the results of the 2007 CSO study on the informal sector The study had targeted cities/towns, urban and rural villages where these enterprises were found.
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Analysis of Data
7. A number of data analytic tools were used. Qualitative data from the questionnaire,
for example, was captured and coded using Microsoft Excel. Verbatim excerpts were captured in journals and analysed for inclusion in the report to further clarify socio -
cultural issues needing a qualitative perspective.
Findings
Distribution of the IS
8. The IS activities are concentrated in areas with significant population sizes such as towns and urban villages as compared to rural and settlement areas where the
activities were fewer.
Benefits of the IS
9. Cash income was the preferred benefit sought by all operators. However, the majority reported earning survival income that could only support minimal daily subsistence needs. Most operators reported being frustrated because they were
unable to meet their basic livelihood needs.
10. Those IS operators who were self-employed reported earning more income than those who were given jobs by others.
11. Some trades yielded more gains than others as there was evidence of successful
operations among those engaged in construction, manufacturing and services where the demand for services or products was substantially higher. For instance,
the production of items such as trailers, livestock troughs, baskets, pots and wood sculptures demonstrated great potential for sustainable livelihood.
12. Competencies (including indigenous skills) learned outside the formal system of
education and training was found to be among some of the most beneficial in the informal sector.
13. It was generally revealed that IS operators needed higher levels of proficiency in
order to reap greater benefits from their activities. The majority of the operators were dissatisfied with the low incomes that they were able to earn from their activities
Competency Needs and Gaps
14. Successful operations in the IS required relevant essential competencies that could be used to produce goods and/or services efficiently and competitively.
15. The majority of operators in the IS had low levels of formal education and did not have any formal training relevant to the activities they were operating. A total of
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92% did not have any formal training whilst less than 6% had attended vocational training.
16. Some IS operators had basic entrepreneurial skills such as innovativeness, problem-
solving skills, risk taking, customer care, selling (counting, adding and subtracting – sorting out change), confidence and communication skills.
17. Many informal sector workers were very willing to improve their competencies but
were unable to do so due to limited access to existing skills development opportunities and to resource constraints.
18. The majority of those with good competencies, including indigenous skills were
either self-taught or learned through observing and copying/imitating their parents, relatives, peers and other entrepreneurs.
19. The average proficiency rating for competencies in most sub-sectors was low to
moderate whilst all respondents recognised the importance of raising their skills to the highest level. Most operators preferred to learn the skills they needed through observing and practicing not through attendance of any formal programme.
20. A significant proportion of operators in some sectors such as the construction sub-sector had some formal training. In the construction sub-sector only a small proportion (2%) of the operators had acquired skills outside the formal system of
education and training.
21. Most people in construction activities rated their proficiency levels as moderate and viewed formal training as extremely important to elevate the proficiency to higher
levels.
22. Overall, people in sub-sectors with few number of operators such as education, estate, health and social services also indicated the need to acquire more skills to
upgrade their competency levels, which they assessed as between low to moderate
Providers of Skills
23. Many providers (or potential providers) of skills development for the IS existed in both the public, private and non-governmental sectors. The public sector was
however the biggest provider of skills required for successful IS operations.
24. Providers of skills in the IS such as vocational institutions and brigades targeted learners with a minimum of junior certificate and these excluded the majority of people who operated in the informal economy.
25. Informal providers of competencies, including indigenous skills were largely
unrecognised as demonstrated by those IS operators who could not trace the origin of their skills.
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Skills Training
26. Many people in respective IS operations lacked some of the competencies that
could enable them to expand their activities and produce enough products for subsistence and more income. All operators needed entrepreneurship as a
foundation competency required to create the readiness for growth and development.
27. The need for both technical production competencies and entrepreneurship was expressed by all respondents explored in this study. Many felt the need for more competencies as well as for other resources like materials and finance.
Policy Environment and Investment in Skills Development
28. The policy environment was found favourable for only those operators in higher-end IS activities which were mainly formally registered and regulated. For instance, instruments such as the Policy on Vocational Education and Training (1997); the Vocational Training Fund; Vocational Training Act (1988) and the National HRD Strategy (2009) could not support the promotion of skills development and investment for the illiterate or lowly educated operators in the unregulated informal
economy.
29. Existing policies thus could not be utilised to promote relevant practical skills development interventions for the real informal sector populated by poor,
uneducated, largely women and the youth, who lacked access to existing funding and training opportunities.
30. Facts on the nature of the IS in other countries revealed that the sector contributed
positively to economic growth by providing alternative opportunities for employment, especially self-employment for a large portion of the population. In
most countries governments and donors invested in programmes to enhance the productivity of the IS as part of efforts to reduce poverty and attain the Millennium
Development Goals (MDGs). Skills development was found to be a key component of an integrated package of interventions deployed to improve the IS in the
benchmark countries.
Conclusions
31. Employability and successful performance in the IS required a range of
competencies that were essential for higher production and productivity.
32. The majority of people who are engaged in IS activities have either no or low formal
education and training. Most had acquired the competencies they possessed outside the formal educational system from family and the community.
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33. Indigenous skills learned informally have been found to be amongst the most useful
in viable IS activities.
34. Participation in the IS either through self-employment or from jobs provided by other IS operators was recognised as having made a positive difference in the
standard of living of people, albeit, to varying degrees. 35. For most people involved in IS activities, the income gained was able to satisfy
subsistence needs only while for others it fell short of meeting the basic requirements for decent living such as enabling people to access food on a
sustainable basis.
36. Some IS activities such as construction, manufacturing and retail trades provided better opportunities for greater economic gain than others.
37. Most of the people in the IS showed very little potential for sustainable livelihood.
38. Most people operating in the IS recognised the importance of gaining more
production skills and were equally willing to improve their competency levels but lacked the resources to invest in skills development.
39. Potential providers of skills development for the IS were found to exist in the public, private and non-governmental sectors. Government and/or public sector related
institutions were currently the biggest skill sources for IS activities.
40. Most of the existing providers of skills targeted those with a minimum of Junior Certificate and this requirement was beyond reach of the majority of people in the
IS.
41. Informal apprenticeships providing indigenous skills which are used in diverse IS
activities were found to be amongst some of the few critical sources of supply for skills required in operations in the IS.
Recommendations
42. Apprenticeship could be a major source of skills development for the IS and therefore both formal and informal apprenticeships should be recognised and
supported through proper investment and relevant policies.
43. The indigenous skills with high potential for yielding greater economic benefits such as sculpting, pottery and basketry but which have been observed to be in decline
should be revitalised through proper investment, relevant policies and demand-driven provision.
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44. Entry requirements and fees for training and education for high value IS activities should be reviewed to accommodate those with lower educational levels.
45. There is need to strengthen entrepreneurship education for those in possession of
lower levels of education (e.g. primary and secondary education) and are either unable to gain entry into formal educational and training institutions and/or cannot
be absorbed in the formal economy.
46. Targeted programmes to raise the educational levels and literacy of those in the IS should be formulated for delivery using innovative mechanisms such as non-formal
or open and distance learning interventions. These could be offered through the Department of Out of School Education and Training (DOSET) or the Botswana
College of Distance and Open Learning (BOCODOL) and other providers.
47. IS operations that have high potential for economic benefits and sustainable livelihood in sub-sectors such as retail trade, construction and manufacturing should
be strengthened through skills development and other interventions.
48. For the IS to be recognised as a major contributor to economic diversification, a package of proper incentives in the forms 0f credit facilities, awards of excellence, establishment of local and regional markets, opportunities for cross-border trading,
flexible bye-laws and other facilitating environments should be put in place.
49. The IS should be accordingly viewed as a sector with potential to supplement and/or complement the income earnings from formal employment.
50. Strategic partnerships should be formed or strengthened between the Government
of Botswana as the current main provider of skills for the IS and other potential providers such as Community Based Organisations; Faith Based Organisations;
NGOs and Donors.
51. The role of media as a critical stakeholder in the strengthening of the IS (marketer, advocate, public eye, etc.) should be recognised and supported by the Government
and other activists in the IS.
52. BOTA should initiate direct dialogue and forge collaboration with other actual or potential players involved directly or indirectly in managing some aspect of
investment in skills development as part of an integrated approach to sustainable economic development.
53. The activities of citizens operating in the IS should be protected from being undermined by the activities of illegal foreigners whose interests crowd out some of the livelihood activities that provide a means for survival for citizens.
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SECTION 1:
BACKGROUND INFORMATION
1.1 Introduction
The IS in Botswana has been growing at phenomenal rates as more people who could not
enter the formal economy took advantage of opportunities for self-employment, jobs and
income generation offered by the informal economy. Although largely home to those who
suffer social and economic deprivation, the IS also provides an avenue for blossoming
entrepreneurs who chose self-employment rather than jobs in the formal economy. The
remarkable growth of IS sector in Botswana has drawn the attention of the government and
its social partners who have embraced the need to search for viable practical means to
promote the sector in sustainable ways. The elevated importance of the IS called for a
change in the mindset of those charged with crafting public policy so that the promotion of
sustainable livelihoods could be integrated into mainstream economic development.
Recognising and promoting the success of the sector could be critical to poverty eradication
but to be effective in a sustainable manner, there was need for fact-based or evidence-
based strategies. One of the key ingredients to the sustainable growth and development of
any economic sector or activity is availability of relevant knowledge, skills and attitudes or
competencies. The term ‘competency’ is used in this report to refer to the knowledge,
abilities or skills and attitudes or values that people need in order to perform an activity
successfully.
Thus the sustainable development of the IS requires an integrated approach to identifying
and developing requisite competencies for high-value activities which could bolster national
economic prosperity. Competencies are fundamental to improving the productivity of the IS
as well as improving working conditions and advancing the sustainable livelihoods and the
decent work agenda.
Consequently, the Botswana Training Authority (BOTA) as the public agency entrusted with
coordinating skills training in the country initiated this study to further understand the current
and future skills needs of the IS. The study would culminate in the development of an
integrated strategy to develop IS skills, including the cost implications of implementing the
strategy. This country-wide study was commissioned to define the nature of competencies
needed by the IS and the indigenous skills that could promote growth in citizens’ standard of
living.
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This report contains the results of the study, including the conclusions drawn and the
recommendations for increasing the productivity of the IS and raising the incomes and
conditions of service of those operating or employed in the sector.
1.2 Objectives and Scope of the Project
The main aim of the study was to provide the facts or evidence upon which to formulate an
integrated IS skills development strategy. The strategy would serve as the framework and
springboard for supporting livelihood growth among the rural and poor members of society
especially the youth and women. Further, the study was commissioned to assist BOTA to
put in place strategies to enable the IS operators to receive excellence awards; move the
vocational skills training system into a demand-driven system; and strengthen the capacity of
BOTA to execute its mandate more effectively. A summary of the more specific terms of
reference for the study is as follows:
a) Establish existing skills, their magnitude in the informal sector and their
economic benefits.
b) Identify training needs required in the informal sector and areas for further
research and BNVQF awards development.
c) Determine the nature of investment in skills development for the informal
sector.
d) Develop integrated IS skills development strategy with an outline of the cost
and implications of implementation.
e) Propose ways of how investment in skills development could be used to
enhance work conditions in the IS
f) Identify existing policies and programmes that encourage investment in
developing skills for higher productivity in the IS.
g) Recommend the role that BOTA could play in the development of skills for the
IS.
1.3 Study Deliverables
Global Consult worked with BOTA to develop appropriate approaches, methodologies and
tools to achieve the objectives of the study. The study resulted in the following outputs.
a. A list of competencies needed by the informal sector
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b. A list of indigenous skills for promoting growth in citizens’ standard of
living
c. Strategy for the informal sector skills development outlining evidence of
benchmarking on similar initiatives with other SADC countries.
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SECTION 2:
LITERATURE REVIEW
2.1. Introduction
This section presents perspectives on the concept of the IS from the literature. In particular,
the section highlights important characteristics of the IS such as how it was variously defined
in different studies and how its nature was captured. Since this study focused on the
competencies that are needed by the IS, this section would identify the common knowledge
and skills associated with a thriving informal sector drawn from studies carried out in other
countries across the globe. Among the competencies identified are high value indigenous
knowledge and skills that could promote sustainable livelihood.
2.2. Defining the Informal Sector
The informal sector attracts different definitions across countries and from different scholars.
This should be expected as the sector is diverse, flexible and ever expanding. The
International Labour Organisation (ILO), for example, defines the IS as “all economic
activities by workers and economic units that are in law or in practice not covered or
insufficiently covered by formal arrangements”(ILO, 2002: p.25). ). The ILO further identifies
the following features as characterising the informal enterprises:
small scale of operation
family ownership
reliance on indigenous resources
labour intensive activity, technology adapted to local conditions
skills acquired outside the formal school system
ease of entry into the activity; and
operation unregulated
Writers such as Bromley (1978), Carstels et al (1989); Pratap and Quntin (2006), are also
in agreement with the ILO that the informal sector is largely unregulated; is of small scale
activities; is carried out by self-employed people (but at times with hired workers or
apprentices) for purposes of generating employment and income. From the United Nations
Department of Economic and Social Affairs’ (DESA), the informal sector is viewed as a
means of survival when no other options exist (DESA Working Paper No. 42 of 2007). While
appreciating other definitions as complementary, this study adopted the definition of the
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2005/6 Botswana Labour Force Survey (LFS) which defined the informal sector as
businesses that satisfy the following criteria:
Not registered as a company or with any professional association
Employing less than 10 employees
Keeping Informal accounts or none
Expenditure not easily distinguished from household expenditure
Employees casually hired
Often temporary or mobile or in owner’s home/plot
The definition adopted synthesises the emerging consensus on what constitutes the IS. It
distinguishes the IS from small, micro and medium enterprises (SMMEs) some of which are
part of the formal economy. SMMEs are normally registered as companies, therefore legally
distinguished from households; have formal accounts; and have formally employed workers.
Some SMMEs employ more than 10 workers on formal contracts and operate from hired
premises. Care was taken, therefore, to ensure that this study did not encroach into the
SMME sector.
2.3. Key Features of the Informal Sector
It is worth mentioning that in Botswana, like in other countries, the IS sector has two distinct
sides (Walther (2011);
1. On one hand, it is a negative manifestation of inadequate employment creation in
private companies, parastatal and government services which ‘pushed’ large
numbers of jobless in informal activities.
2. On the other hand, it refers to the positive response of the poor (and many not-so-
poor) in the face of such a situation, combining their minimal resources, hard work
and often a large dose of ingenuity to earn low but important incomes.
This dualistic nature of the IS is endorsed in this study as one of the most important
characteristics of the IS. Accordingly a two-tier system in the informal sector could be
delineated with, a) those who were there by choice, and b) those who had no alternative
means and were unlikely to have received any form of training.
The Government of Botswana recognises the actual and potential contribution of the
informal sector to the country’s economy. As a result, national activities towards economic
diversification as espoused in past and current National Development Plans (NDP 8 - 10)
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have recognised the role of the IS. This recognition has resulted in the formulation of policies
and programmes aimed at developing this sector. The programmes were intended to
stimulate the entrepreneurship attitude whilst providing foundation competencies. Some of
the past and current programmes include:
The Botswana Development Unit (1974) with the mandate to provide integrated
support for citizen entrepreneurship development.
The Rural Development Programme and the Advisory Service developed to provide
support to small enterprises.
The Financial Assistance Policy (1982) initiated to provide assistance to small scale
manufacturers.
The Citizen Entrepreneurial Development Agency (CEDA) in 2001 with the goal to
provide financial and technical support for business development. CEDA aims to
promote viable and sustainable citizen owned businesses.
The Local Enterprise Authority (LEA) was established in 2004 to offer assistance to
entrepreneurs or aspiring ones in the SMME sector.
All these efforts reflect the political will to support the top echelons of the informal sector
which portray the features of enterprises in the formal economy that are not the primary
focus on this study. In other words, current policies and programmes could be said to
exclude the IS of unregistered and unregulated income generation operations.
It should be noted that data to guide the formulation and implementation of public policy and
programmes for promoting the IS had relied on Labour Force Surveys (LFS) which are
conducted every 10 years. The 2005/6 survey, for example, revealed that the IS grew from
11% to 20% of the total Botswana labour force between 1995 and 2005. The same survey
also revealed that about 60% of those in this sector were women. The increasing number of
women IS operators reflects an interesting trend where the women who have historically
been left out of the formal employment sector sought other livelihood avenues. On the
education front a significant proportion of people in the IS had primary and junior certificate
at 30% respectively as revealed by this 2005/6 survey. The same study indicated that 83%
of those in the informal activities did not receive any form of formal training.
Another important document relevant to this study was the 2007 Informal Sector Survey
(ISS) Report produced by the Central Statistics Office. This report estimated the number of
informal sector businesses in Botswana at 40, 421 and employing a total of 16, 980
employees. The estimated total number of people involved (self-employed and employee)
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was 57 311. A further look at the IS indicated that between 1999 and 2007, the sector grew
by 72.3% which reflects the trend observed in other developing countries. The ISS (2007)
also revealed that there were more IS activities in cities/towns and in urban areas than in
rural areas.
2.4. A focus on Competencies
The National Human Resource Development Strategy 2009-2022 draws attention to the
need to place people at the centre of national development. It also establishes strong linkage
between skills development and employment. One of its twin overarching strategic goals on
skills development is to “harness the full human resource capacity of the nation by providing
opportunities for Batswana to realise their full potential across all stages of the human
resource development lifecycle so as to build a stable, prosperous and globally competitive
nation. The strategy recognised that employment, both formal and informal is a key integral
component of the human life cycle.
It should be stated that if the education and training system of any country could not produce
relevant skills, many people would fail to find employment and this would jeopardise their
chance to reach their full potentials. Therefore, it would be worth noting that Botswana has
chosen a more strategic approach of formulating public policy interventions to develop
SMMEs which are normally categorised as part of the IS. The Government initiated these
policies because of the realisation that the IS was a viable vehicle for promoting and
improving citizens’ standards of living. Included amongst these interventions was the
establishment of a vocational training system and the recognition of the contribution of
vocational education and training in skills development, especially building links between the
formal TVET and indigenous systems.
Activities in the IS have diversified over the years and this has had a direct impact as well as
posed a challenge to the role played by BOTA in skills development in the IS. One of the
principal objectives of BOTA is to guide the development of new and emerging vocations to
meet the requirements for diversification of the economy (GOB, 1998). To be responsive to
emerging challenges BOTA is compelled to explore the competencies needed in the IS so
that it could be better placed to develop strategies for guiding the development of the sector.
A key focus of this study was to identify the competencies used in the IS and determine how
such skills offered economic benefits to IS operators, including identifying indigenous skills
that promoted growth in citizens standard of living. Thus this report listed all the
competencies (including indigenous skills) that existed in the IS. It further identified those
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competencies that are needed because they have high value or offer opportunities for
citizens to improve their standard of living.
The concept of competencies generally refers to the abilities, capabilities or expertise that a
person possesses which enable them to function in a given situation or to perform an activity
to achieve an objective. Competencies are enhanced through learning, whether in a formal
or non-formal setting. It would follow therefore that indigenous skill referred to the abilities,
capabilities or expertise that is acquired and/or transmitted within a given social, cultural and
economic context which enabled people to pursue livelihood interests. According to the
Warren (1991) and Flavier (1995) indigenous knowledge is local knowledge that is unique to
a given culture or society and which contrasts to international knowledge generated from
conventional learning institutions. It served as the foundation of the actions, practices and
activities that people in rural communities do to live and to prosper.
It is essential to observe the dimension on indigenous skills which views them as skills that
are transmitted informally in the context of family, community or societal interactions. As said
by Billet(1994); Marsick and Volpe (1999); Purcell (1998) indigenous knowledge refers to (i)
knowledge developed from experiences gained over time, (ii) knowledge gained through
social interactions (parent and/or peer mentoring), (iii) learning that occurs as a result of
close guidance from others, (iv) knowledge/skills gained through observing, watching or
copying.
The World Intellectual Property Organization - WIPO (2005) offers a complementary
perspective defining indigenous skills as knowledge that encompasses the content or
substance of traditional knowhow, innovations, information, practices and skills. Indigenous
skills are not normally offered in the formal education and training system which in
Botswana included primary/secondary schools, brigades, vocational schools, technical
colleges and universities.
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SECTION 3:
APPROACH AND METHODS 3.1. Introduction
This study adopted a mixed approach combining both quantitative and qualitative
approaches to data gathering. A variety of methods such as questionnaire-based
interviewing for both individual and group respondents were employed to ensure that the
skills used in IS activities were identified. The methods chosen also facilitated the
assessment of economic benefits of skills possession and the gauging of the difference
between the skills required for productive IS operations and those possessed.
Thus the section describes the actual approaches, methods, techniques and tools used in
the study, including describing the basis for selecting the locations, IS activities and study
participants. Desk research was used to complement the questionnaire and interview
method to ensure in-depth knowledge of good practices in skills development for the IS in
other countries. The methods used ensured that the study delivered a comprehensive
understanding of the competency needs of the IS in Botswana so that value adding
strategies could be crafted to make the IS a vehicle for poverty alleviation.
3.2. Data Collection Methods: Quantitative and Qualitative Approaches
Although the study was to a greater extent primarily qualitative due to the nature of
information required, it had some quantitative elements. Quantitative data was collected on
the demographic make-up of the IS; the current level of proficiency; the importance of future
skills development; and on the needs of IS operators. Phenomenological qualitative
interviewing was employed to gather data on the respondents’ perceptions, experiences and
ideas in relation to; (i) the competencies they possessed and how such competencies had
helped them to be productive in the IS (ii) sources of competencies (iii) how they could be
facilitated to improve their operations (iv) their experiences with funding and its challenges,
(iv) their perceptions of competencies they needed to sustain operations, and (v) the role
played by traditional apprenticeship as a source of skills development. Information on
different variables was captured in the questionnaire-cum-interview guide during the
interview discussions. Journaling was also used to capture information that was particularly
useful in developing case studies which further clarified the experiences of different
respondents.
3.3. Sampling: Enterprises, Locations and Participants
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Although it had originally been envisaged that 791 IS operators would be surveyed during
the field visits, the researchers were able to reach 559 respondents. Aiming to reach 791
was highly ambitious and probably extravagant as the nature of the study did not necessarily
require large numbers. It became clear during the data gathering and more especially during
the analysis that because of the use of a non-probability sampling (combing both the
purposive and snowballing or chain-referral techniques) what was critical was getting
information from knowledgeable respondents in the IS. The approach to sampling was
particularly important because most of the IS operators are hidden in the population of
different places and could only be approached after researchers either identified them prior
to calling on them or were referred to them by others. Thus before the researchers set out to
do field work, they identified the IS sub-sector, the places to be visited and the number of
respondents to be covered in each district. For instance, the North West and Chobe
Districts, the researchers aimed among others to meet with operators involved in activities
associated with tourism and fishing or related activities. Table 1 shows the respondents by
sector and place of operation.
The use of purposive and snowballing techniques by researchers was also meant to include
only those operators who met the following criteria for the IS:
- Not registered as a company or with any professional association
- Employing less than 10 employees
- Informal accounts or none
- Expenditure not easily distinguished from household expenditure
- Employees casually hired
- Often temporarily or mobile or in owner’s home/plot
By purposefully searching for respondents who met the above criteria, the researchers were
able to exclude SMME operators who are normally included as part of the IS even though
they were largely engaged in small but formally established and regulated activities.
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Table 1: Respondents by City/Town/or Village
Sector
W/s
ale
&
Reta
il
R/E
sta
te
Manufa
ctu
re
Ag
rib
usi
ne
ss
Constr
uction
Hote
l a
nd
Resta
ura
nt
Tra
ns
p &
com
munic
atio
n
Education
Healt
h a
nd
Socia
l
serv
ices
Serv
ices
Oth
er
co
mm
un
ity
ba
se
d
se
rvic
es
Oodi 1 0 2 3 2 1 0 0 0 5 0
Kuru 0 0 1 0 0 0 0 0 0 0 0
Mmopane 4 0 0 1 2 2 0 0 0 1 0
Metsimotlhabe 3 0 0 2 0 1 0 0 0 3 0
Mogoditshane 10 1 3 4 2 3 1 1 0 5 0
Palapye 6 0 0 1 1 0 0 0 0 3 0
Serowe 5 0 4 0 0 0 0 0 0 2 0
Mahalapye 3 0 2 4 0 0 0 0 0 0 0
Moshupa 2 0 0 0 0 0 1 0 0 3 0
Kang 6 0 0 1 0 2 0 0 0 2 0
Ramotswa 1 0 0 0 0 1 0 0 1 4 0
Tsabong 4 0 0 0 0 0 0 0 0 2 0
Werda 1 0 0 0 0 0 0 0 0 0 0
Jwaneng 13 0 1 2 0 0 0 0 1 2 0
Kanye 6 0 1 0 0 1 1 0 0 5 0
Manyana 3 0 0 2 2 0 0 0 2 1 0
Mankgodi 7 0 6 1 3 1 0 0 0 5 0
Gabane 4 2 1 1 0 0 1 0 0 4 2
Kumakwane 5 0 1 3 5 1 0 0 0 2 1
Madinare 0 0 0 0 0 0 1 0 2 1 3
Tati 3 0 0 0 1 0 0 0 0 3 0
Semolale 6 0 5 1 0 1 0 0 0 0 0
Bobonong 5 0 3 0 0 2 2 0 1 1 0
Selibe
Phikwe
4 0 1 2 0 2 7 0 0 0 0
Lobatse 5 2 0 0 0 1 0 0 0 0 0
Goodhope 9 0 2 1 0 0 0 0 0 1 0
Phitshane 2 0 0 1 0 0 0 0 0 1 0
Maun 2 0 2 0 3 1 0 0 0 3 0
Kasane 4 0 0 1 0 0 1 0 0 0 0
Tutume 0 0 0 2 0 0 0 0 0 4 0
Matsiloje 4 0 0 1 0 1 0 0 0 1 1
Gaborone 8 2 4 2 1 2 1 1 0 14 0
Mapoka 1 0 0 1 0 1 2 0 0 0 3
Masunga 10 0 2 4 1 0 2 0 0 0 2
Mopipi 0 0 2 3 0 2 0 0 0 0 2
Letlhakane 6 1 7 3 1 0 0 0 0 5 0
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Rakops 2 0 2 0 3 0 0 0 0 1 0
Tonota 7 0 3 3 1 2 1 0 0 2 1
Francistown 5 0 3 2 0 0 1 0 0 0 0
Bokaa 3 0 4 1 0 0 0 0 0 1 0
Mochudi 5 0 6 0 0 0 0 0 1 1 0
Molepolole 4 0 1 4 0 1 2 0 1 8 0
Sehitwa 0 0 8 1 0 0 2 0 1 0 0
Parakarungu 0 0 2 0 0 0 0 0 0 0 0
Total 179 8 79 58 28 29 26 2 10 96 15
Some of the challenges experienced during field research which also militated against
settling for the originally projected sample size of 791 included:
- Poor conditions of rural road
- Non-availability of public transport
- Non-availability of convenient lodging
- Diverse patterns of activity concentration
Effort was however, made to have a representative sample of the urban or semi-urban
areas, villages and rural settlements.
3.4. Data Capture: Questionnaire
The main tool for collecting data was the structured questionnaire. The questionnaire
allowed for the collection of both quantitative and qualitative data. The questionnaire
explored a number of variables including the following;
General Information – Demographics of those involved in the informal sector
Existing skills, their magnitude and identified economic benefits
Existing government and non-government policies used in the IS
Skills development in the IS and their related economic benefits
Skills required in the informal sector
Costs and their implications on the development of skills
Providers of skills needed in the IS (both traditional and formal)
The role played by the traditional apprenticeship in skills training for IS (both
traditional and formal providers).
The questionnaire was administered face-to-face with researchers taking respondents
through the questions and entering their responses. In this way, researchers were able to
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clarify questions where necessary to suit the experiences and circumstances of the
respondent. In most cases, researchers visited the respondents unannounced and solicited
their participation. However in some cases, the questionnaires were administered during
scheduled meetings mutually agreed upon by the researchers and respondents.
3.5. Data Gathering Using Interviews
The study was carried out using both individual face-to-face and focus groups.
(i) The Individual Interviews
Variables explored included (i) perceptions, attitudes and values they held about
informal sectors, and (ii) factual information such as the number of enterprises/jobs.
Of necessity, the interviews were tailored to the unique situations of the people in the
IS, for example, interview questions with people who were self-employed or those
directed at those who were in jobs.
(ii) Focus Group Interviews
Focus group interviews were preferred where people shared some characteristics.
For example, people trained through traditional/indigenous methods were interviewed
together, to get information on their perceptions of the importance of IK (Indigenous
Knowledge) in the IS.
The interviews generally proceeded in the following manner:
a. Introduction – Researchers introduced themselves first and explained the purpose of
their visit/research before asking the respondents to do the same.
b. Consent protocols – In compliance with research principles, respondents were asked
if they consented to taking part in the study. The administration of the questionnaire
only proceeded once the respondents had communicated their consent to participate
in the study. Researchers assured respondents of their anonymity.
c. Demographic factors – questions on demographic factors were posed first.
Thereafter both close-ended and open-ended questions were used with the latter
utilised to facilitate detailed descriptions of respondents’ perceptions and
experiences.
3.6. Data Gathering from Desktop Document Search and Literature Review
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The desktop document search and literature review was carried out for the following
reasons:
To identify and review existing government and non-government policies and studies
done on skills development in the informal sector and their related economic benefits
To review structures in place to support practices relating to informal sector
To review policies and programmes pertaining to costs and their implications on
development of skills in the informal sector
To benchmark or draw good lessons that could be applied in (i) developing the
Strategy for skill development in the IS and (ii) drawing up the list of scarce skills that
could be utilised in the policy process.
The results of the desktop document search are presented under the sections on literature
review and benchmarking.
3.7. Data Analysis
For data analysis a number of data analytical techniques were used as indicated in Table 2
below;
Table 2: Analysis Phases
PHASES DESCRIPTION
1. On-going data analysis during fieldwork – Both principal and research
assistants met periodically to assess and discuss the progress including
emerging themes and challenges of the field.
2. At the end of the fieldwork - labelling the transcripts and reviewing the
journals to get a feel of what had been said or observed and to be assured
that relevant and useful data had been collected.
3 Interview data were converted into text data (verbatim), in preparation for
the coding process. Then coding was done and both SPSS and Excel were
used as necessary.
4
5
Presentation of the findings that detailed the skills used in the IS and their
economic benefits, skills-gaps, costs and their implications on the
development of skills in the IS.
Development of a strategy for skills development in the IS.
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SECTION 4: IS ACTIVITIES AND LOCATIONS
4.1. Introduction
IS activities are very diverse covering a multitude of different commercial and industrial
trades. Whilst the activities are concentrated in areas with higher population such as cities,
towns and large villages, they could be found in different locations across the length and
breadth of the country. This section discusses the characteristics of activities undertaken by
respondents in this study.
4.2. Enterprises
All the activities explored met the criteria adopted in this study. For example, the activities
were not registered businesses, were not regulated, employed less than 10 employees and
had no formal bookkeeping. In Figure 1 below the sub-sectors within which the activities that
were explored fall are presented.
The top three most popular sub-sectors covered in the study were Wholesale/Retail Trade
from which 179 respondents (32%); Services with 96 respondents (17%); and Manufacturing
with 79 respondents (14%). The coverage was informed by the 2007 Informal Sector Survey
which had revealed more or less the same prevalence rate of the activities in the respective
sub-sectors.
Figure 1: Enterprises Explored
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In the Wholesale/Retail Trade sub-sector the activities were dominated by sale of clothing
items (new and second hand); confectionery items (candy, biscuits, gum etc); mobile
communication related items (airtime, cellular phones and accessories etc); jewellery and
fashion accessories; fresh produce (fruits and vegetables). The manufacturing sector was
dominated by basket weavers (traditional baskets), metal craft (metal things); wood craft and
carpentry (furniture and sculptures); textile (apparel making and clothing); leather craft
(leather products); artists; food and drink caterers (food, yoghurt, home brewed beer, bread,
cakes etc). In the Real Estates sub-sector 8 respondents (1.4%) were covered and these
were involved in providing housing for rental. A total of 10 respondents (2%) were covered in
the Health and Social Services sub-sector. Activities under the ‘Other Community-Based
Services’ included clearing yards, providing garden maintenance services, washing of
laundry and ironing. These are discussed as part of ‘Services’ category of the informal
sector. The least popular sub-sector was Education where only 2 respondents (0.48%) were
covered; both involved the predominant activity of providing tutoring services.
In all, 559 IS activities were explored. As stated, the sample was determined using
purposive, convenient and snowballing or referral/reputational strategies. It is important to
observe that the activities were selected to cover diverse sub-sectors which belonged to the
IS as defined in this study.
4.3. Locations
The IS activities were found in all the districts of Botswana and efforts were made to ensure
that coverage included diverse locations such as urban, rural and remote areas. Figure 2
indicates the different locations visited by the researchers as well as the number of
respondents in each of the location.
Figure 2: Study Sites
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The pattern of concentration that emerged from the 2007 IS Study by the CSO was used as
a frame of reference for selecting a representative sample across diverse sub-sectors and
locations around the country. For example, more activities were explored in Gaborone (35)
and Mogoditshane (30).There were less IS activities in areas such as Werda and
Parakarungu which are smaller and remoter villages.
4.4. Participants’ Characteristics
This section presents the unique characteristics of people who participated in this study in
terms of demographics factors such as age, gender and educational background.
4.4.1. Number of Participants
As Figure 3 below shows, the majority of respondents were citizens of Botswana (98%)
while about 2% were operated by non-citizens from Zimbabwe. The non-citizens ran
activities in the manufacturing, agribusiness, construction and transport sub-sectors
Most of the IS operators were self-employed 339 (80.3%) with only 43 (10%) being
employees. Some IS operators 35 (6.2%) were in syndicates. Generally, most of the
activities were one-person operations who were self-employed people. Most operators were
concentrated in the wholesale/retail trades.
Figure 2: Study Participants
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4.4.2. Age of the respondents
The respondents covered were in all age groups as shown in Figure 4.
The most common age bracket of IS operators was the 20 – 29 years (32%) bracket, and
the 30-39 years (32%). Thus the IS in Botswana is dominated by the youth as those
belonging to the 40-49 years age bracket constituted only 11% of the population. Those
above 50 years constituted 25% of the population. There is no definite pattern emerging to
indicate businesses preferred by youth as compared to the other groups.
4.4.3. Gender dimensions of the respondents
The study revealed that most IS operators were women as indicated in Figure 5.
Figure 5: Respondents’ Gender
Figure 3: Respondents' Age
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Figure 5 reveals that 58% of the study population was female with the male counterparts
constituting the remaining 42%. Generally, more women were engaged in activities in the
wholesale/retail, hotel and restaurant; basketry sub-sectors whilst men were involved in
construction, metal craft, leather craft, wood craft, service (mainly technical repair work) and
transport sub-sectors as emerges in Figure 6.
Figure 6: Participation by Gender
4.4.4. Marital Status of the respondents
Figure 7 shows the marital status of the respondents.
Figure 7: Respondents’ Marital Status
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According to Figure 7 a significant proportion of people involved in the IS (73%) were not
married whilst only 22% were married. Those who were either divorced or widowed
comprised the remaining 5%. However, there was no statistically significant relationship
between gender and marital status as the majority of respondent, whether male or female,
were not married.
4.4.5. Educational Backgrounds of Respondents
F
This study also explored the educational levels of those who participated. Figure 8 presents
the results.
Figure 8: Educational Backgrounds
From Figure 8, it is revealed that the educational levels of those engaged in the informal
sector was generally low with 33% of those surveyed having a Junior Certificate and 26%
having only primary education. Only 6% had received training from brigades and vocational
institutions whilst 19% had senior secondary education with and a 2% possessing a post-
secondary education (University). In all, 15% of the respondents had no formal education.
Female respondents further were the majority among those with primary education (18%) as
compared to 8% of male respondents. A total of 2% male and 0.5% female respondents had
been through brigades whilst 3% male and 0.64% had vocational education. Among those
with university level education 1% was male and 0.86% was female. Overall, the average
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September 2012 29 | P a g e
male respondent had Junior Secondary education while the average female had senior
secondary education.
4.5. Income Levels
4.5.1. Average Income
Income was one of the variables explored in this study and the results are captured in Table
3 below.
Table 3: Descriptive Statistics of Income
N Minimum Maximum Mean Standard Deviation
Total cash income 183 0.00 60,000.00 2,557.6503 7,202.40905
Valid N (list wise) 183
IS operators reported earning income that ranged from a minimum of P00.00 to a maximum
of P60, 000.00 per month, with a mean of P2, 557.65. A standard deviation of P7, 202.41
indicates very large variations between respondents. However, quartile analyses give
relatively more reliable estimates. The averages for incomes in the first, second and third
quartiles were P500.00 (five hundred); P1, 000.00 (one thousand) and P3, 050.00 (three
thousand and fifty) respectively. The mode (most frequently encountered) income was
P500.00.
4.5.2. Gender and Income
The overall average income for male respondents was P4, 412.20 (four thousand, four
hundred and twelve pula twenty thebe). The averages for the first 25%, 50% and 75% of the
male respondent were P600.00, P1, 750.00 and P5, 150.00 respectively. The overall
average income for female respondents was P1, 655.45 (one thousand, six hundred and fifty
five pula forty five thebe). The averages for the first 25%, 50% and 75%of the female
population were P425.00, P800.00 and P2, 000.00 respectively.
4.5.3. Age and Income/Length of time in the business
There was a positive relationship between income earned and the length of time one had
been engaged in the IS operation. This shows that experience counts as a factor for
operating a successful IS activity.
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SECTION 5:
IS Competencies per Sub-Sector 5.1. Introduction
Working in and for the informal sector requires some specific skills. This section thus
presents the findings in relation to the current or existing competencies of those who
participated in this study. As per the objectives and terms of reference, the study targeted
the general competencies required for successful IS operation and the specific indigenous
skills that could be utilised to raise livelihood standards.
The informal sector in Botswana is diverse with respective activities spanning wholesale and
retail, manufacturing, services, hospitality and catering, building and construction, health and
social services, education/tutoring and others. The diversity dictated that the study focussed
on competencies required for the operation of different activities in different sub-sectors. In
reporting the results more detailed analysis was made on the wholesale/retail sub-sector
since it commanded more popularity than other sectors and was the most prevalent across
the country. The competencies found in other sub-sectors are discussed in less detail. The
purpose of discussing the nature of the competencies was to establish their value and
determine any learning gap that existed.
5.2. Skills Used in Wholesale and Retail
Goods sold in this sector were diverse and generally reflected those traded in the formal
economy. A number of factors account for successful operation of wholesale/retail trading
and these include the productivity of the operation, the demand for the goods and the extent
of competition. Possession of competencies was determined to be a major differencing
factor that directly contributed to productivity and translated into competitiveness and
sustainability.
In wholesale/retail trading success depends on both product knowledge and on possession
of generic business or entrepreneurship competencies. The business competencies include
numeracy and basic money management knowledge, book keeping, marketing and
salesmanship, risk taking and creativity. These competencies could be acquired largely from
the formal education and training system even though they could also be acquired informally
through observation, practice or apprenticeship.
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The majority of the operators (92%) involved in wholesale and retail trading did not go
through any formal training to prepare them for the business activity and only 2.14%
attended brigade whilst 3.42% underwent vocational training. Most respondents acquired
their competencies outside the formal system of education and training. Many indicated that
they learned through observing other participants in this sector. A small number (3%)
indicated that they had previously worked in wholesale/ retail establishments in the formal
sector and through this experience they acquired the requisite skills and knowledge to
operate in the IS. Most of the operators mentioned learning the skill traditionally such as
through trial and error (90); followed by through interactions with others and observing what
they did (80); through direct experiences of selling (60); and through guidance received from
others who had experience in selling (50).
Further analysis showed that the percentage of people who learned through trial and error
were lower in the selling of items such as airtime and other mobile communication related
items while it was higher in those selling second-hand clothing items. More of the older
(above 40 years) women reported starting their trading ventures without any formal
competencies and had to rely on informal learning from observing those selling next to them.
5.2.1. Traditional/Indigenous Skills – Wholesale/Retail
The indigenous skills that are used in the wholesale and retail trade sub-sector and which
can contribute to higher standards of living are captured in Table 4 below:
Table 4: Indigenous Skills for Wholesale and Retail
Indigenous skill Description of use
Botho As a marketing strategy because relational aspects are needed for the business to succeed. Helps in retention of customers
Understanding of the different customers
Natural talents to know what customers want and how to please them
Presentation skills (appearance) Attracting customers by appearance and having interpersonal communication skills. Carefully presentation of products to be sold.
Customer care Paying attention to customers and being emotionally intelligent
Environment preservation Being conscious of clean and healthy surrounding (e.g. not littering).
Knowledge of prices (standard price and negotiable prices)
Reduction of prices where it is necessary, e.g. perishable items like rotting tomatoes.
Time consciousness and management
Knowing the ‘high-peak’ for selling. Knowing the right product to sell (seasonal or year-long) as well as keeping products on stock (availability of goods sold)
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5.2.2. Sources of Traditional Skills: Wholesale and Retail
In response to the question, ‘How did you learn the skills you are using in your business?’
most respondents identified parents, peers, relatives and others as the key sources of
learning. For example, one respondent reported how she learned the competencies that
enabled her to be patient from home where her parents, especially her mother who used to
sell candies while she was still young. “Some customers used to come with not enough
money and instead of being unfriendly to them; she would communicate courteously that the
amount they had was not enough”, she stated. One of the sellers reported having learnt how
to do retail trading from their older sibling saying “Ke nkonne a ntshupeditseng go rekisa (it’s
my elder sibling who showed me how to sell). However, others reported being self-taught
saying “I don’t know when I learned it, I just saw myself doing it”. The environment of selling
too has been shown to provide self-learning skills.
5.2.3. Competencies and how they were acquired
It was not easy to get the respondents identify the competencies they possessed especially
the indigenous skills. In such cases, it was necessary to engage in special probing to get
respondents to describe what was required to perform well in their activity . There were
cases where some operators could not describe the competencies they possessed, but after
probing and observing, it was possible to identify the skills required. One operator who used
feathers to make jewellery reported having no skills but on further probing, it became clear
that she had acquired the skills by observing a friend and then being shown what and how to
perform the task. Comments such as, “a mme mo ke sengwe (is this really anything?)
showed that she understood ‘skills’ as those acquired from the formal education and training
system.
It was also observed that the question “What skills do you have that you use to carry out
your operations?” could have been perceived as unusual by some respondent leading to
vague responses in some cases. Some respondents would indicate they possessed very
high proficiency levels without explaining the nature of the competencies they were proficient
at. Because some skills developed so naturally in an informal setting some people were
probably not aware that they had them. Comments like “I don’t know when I learned it, I just
saw myself doing it” were common.
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5.2.4. Competencies obtained through formal training –
Wholesale/Retail
As already mentioned, most of the respondents in the wholesale and retail businesses
acquired their skills through the informal systems. Very few (about 6%) went through formal
training prior to or when already in operation. Those who acquired skills from the formal
education and training system had attended programmes offered by Brigades, Vocational
Institutions and the University. Below are some of the formal skills used in wholesale/retail
trading.
Table 5: Formal Competencies Used in Wholesale and Retail
Activity/Activities Competencies
Selling Clothing, Cosmetics, food and
handicrafts
Product knowledge
Basic sales and marketing techniques
Quality customer service
Risk taking
Communication and networking
Decisiveness and dynamism
Innovative and conceptual thinking
5.3. Other Sectors
This section reports the findings of enterprises other than Wholesale and Retail, namely, real
estate, agri-business, construction, hotel and catering, manufacturing, health and social
service and services.
5.3.1. Competencies used in the Real Estate
The scope of this sector was limited to those who provided rental accommodation to others.
Activities in this sector were common in high density places such as cities, towns and urban
villages or villages near towns and cities. Overall, respondents did not have any previous
experience of engaging in this trade - they learned on-the-job. Most respondents did not
regard this activity as a full-time engagement. However, when asked about
skills/competencies needed in this sector, the following general competencies emerged:
Table 6: Competency use in the Real Estate Business
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General Competencies Indigenous Skills
Entrepreneurship
Pricing
Customer service
Self management
Communication skills
Market analysis
No indigenous skills
5.3.2. Competencies used in Agri-business
This sector includes diverse activities covering crop production, animal production, poultry
production, fish harvesting, wood harvesting, mophane worm harvesting etc. Although some
of the activities are carried out for subsistence purposes, where there is surplus, it would be
sold to earn income to provide for other livelihood requirements. Some people cultivate
traditional cash crops such as maize, melons, nuts, pumpkins, and sweet cane primarily for
sale. These farm produce was a product of subsistence rather than commercial farming.
Competencies used by operators in the agri-business sub-category were gained through
informal means such as observation of those with the knowledge and skills. Some
respondents reported that the knowledge they possessed had been passed to them through
older, more experienced family members. Table 7 lists the competencies used in this sub-
sector.
Table 7: Competencies used in the Agri-business
General competencies Indigenous skills
Crop production
Cultivation
Crop maintenance
Crop harvesting Handling and Processing
Entrepreneurship
Fishing
Health and safety principles
Fish species
Fish handling and processing
Poultry flock maintenance
Crop production
Ploughing animal driven plough (mogoma).
Weeding using hoe Soil types
Crop maintenance
Crop harvesting
Product handing and processing
Fishing
Fish species Health and safety
Fish handling and processing
Swimming
Boat roaring
Poultry flock maintenance
Handling and processing
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5.3.3. Construction
The most prevalent activity in the construction sub-sector was housing construction,
including bricklaying, roofing, plumbing and carpentry. Many of these activities required
semi-skilled to skilled people. As a result, the sector was generally dominated by those with
formal training in the areas they were doing. Only, a very small number (2%) of respondents
had acquired skills through the informal route.
The following table indicates the competencies needed in this business.
Table 8: Competencies used in the Construction Business
General Competencies Indigenous Skills
Entrepreneurship and Business
management
Understanding drawings
Brick laying
Plastering
Roofing
Plumbing
Knowledge of construction materials (soils,
cow dung, thatching grass, wood and
related products)
Construction process
Traditional decorations like using cow dug
and soil (lekgapho).
5.3.4. Hospitality and Catering
The activities cited by respondents were catering related and none were classifiable as hotel
activities. These activities involved mainly cooking and selling of various food items. Some of
the respondents provided entertainment services through song (including poetry) or dance
whilst other provided tour guide services to tourists.
Most respondents did not have any formal training and had acquired the competencies
informally through observing others and practicing. The following table presents the
competencies used in operations in this sub-sector:
Handling and processing
Livestock production
Breeding
Livestock husbandry
Herd management Environmental
management
Livestock production
Environmental management
Milk products
Fresh and sour milk processing (madila)
Hunting and tracking skills
Wilderness survival
Gathering – wild fruits, vegetables and phane. Preservation techniques
Environmental preservation
Hygiene
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Table 9: Competencies for Hospitality and Catering Services
General Competencies Indigenous skills
Catering - Cooking and baking
Food processing and preservation
Health and hygiene
Entrepreneurship and business management
Tour Guide - Knowledge of history
Understanding the physical environment
Wilderness survival Entrepreneurship and
business management
Dance - Practical knowledge
Creativity
Entrepreneurship and business management
Music - Understanding sound
Composing
Sound production
Entrepreneurship and business management
Constructing brick oven (mmu).
Food processing and preservation
Use of different pot types
Cooking techniques for different food types
Knowledge of traditional recipes
Producing traditional dishes
Tour Guide - Knowledge of history
Understanding the physical environment Wilderness survival
Dance - Practical knowledge Creativity
Music - Understanding sound Composing
Sound production
5.3.5. Health and Social Services
Respondents in this sub-sector provided healing and massage services. The competencies
they used were acquired through informal ways. Most respondents indicated that they had
acquired knowledge and skills through apprenticeships and learning from other practitioners.
The following table presents the competencies needed in the health and social services:
Table 10: Competencies in Health and Social Services
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General Competencies Indigenous Skills
Healing - Diagnosis
Treatment and review
Entrepreneurship
Massage - Human
physiology
Manual dexterity
Entrepreneurship
Expertise of being a traditional doctor
Knowledge of medicinal plants and herbs
Handling and processing of herbal products
Knowledge of health conditions
Counselling skills
Massage techniques
Human physiology
Manual dexterity
5.3.6. Transport and Communication
Operators in the transport and communication sub-sector required skills such as driving and
its requirements like formal licensing. Analysis of data indicated that other skills required for
this sector were generic business management skills required for most businesses. The
following table indicates these skills.
Table 11: Competencies for Transport and Communication
General Competencies Indigenous skills
Driving
Business promotion and marketing
Business management
Pricing
Customer service
Self management
Using donkey carts
Roaring boats
5.3.7. Educational Services
The only informal activity performed under this sector was provision of tutoring services
offered to help students prepare for primary and secondary school examinations. Most
operated from home or from rented premises and provided one-on-one tutoring. They
viewed their working conditions as good. Apart from employing themselves and earning
income for their livelihoods, private tutoring provided a valuable service which
complemented the services provided by formal educational establishments. By supporting
children and other young people to gain qualifications, tutors contributed to the economic
development of families, communities and the nation.
5.3.7 Services
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The Service sub-sector is dominated by different kinds of repair works requiring knowledge
of the technical specifications in addition to entrepreneurial skills. The following are the
general entrepreneurial competencies needed in operations in this sub-sector:
Table 12: Competencies needed in Services
General Competencies Indigenous skills
Cell phone repair
Technical repair skills
Health and safety
Entrepreneurship
Outdoor and indoor cleaning
Health and safety
Entrepreneurship
Outdoor and indoor cleaning
Health and safety
Event planning
Event management
Entrepreneurship
Event planning
Event management
Hair and beauty products
Chemical application
Creative design
Entrepreneurship
Graphic Design and Art
Image conceptualisation Creative design skills
Computer skills
Entrepreneurship
Graphic Design and Art
Image conceptualisation Creative design skills
Landscaping and gardening
Creative design skills
Plant maintenance Health and safety
Entrepreneurship
Laundry services
Washing different fabrics
Ironing different fabrics
Entrepreneurship
Laundry services
Washing different fabrics
Ironing different fabrics
Entrepreneurial skills
Mechanical and electrical systems
Technical repair skills
System maintenance
Entrepreneurship
Shoe repair Shoe repair
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Technical repair skills
Craftsmanship
Entrepreneurship
Technical repair skills
Craftsmanship
Tyre repair
Technical repair skills Vehicle and tyre safety
Entrepreneurship
5.3.8. Competencies needed for Manufacturing
Manufacturing was one of the three top activities in the informal sector. It involved converting
raw materials into finished goods that met the requirements of customers or users. A
manufacturer followed an established process to create finished or semi finished products
using appropriate tools.
Respondents in this sector included basket weavers (traditional baskets), metal craft (metal
things), wood craft (furniture and sculpture), textile (apparel or clothing), leather craft (leather
products), production of food or related items (e.g. yoghurt, home brewed beer, bread, cakes
etc). A total of 15% of people surveyed in this study were engaged in manufacturing. The
majority of people in manufacturing operations (76%) started their activities from their own
resources and only a small proportion of about 8% had secured assistance from government
agencies.
The following table indicates the skills needed for this trade:
Table 13: Competencies for Manufacturing
General Competencies Indigenous Skills
Basketry
Tailoring and dress making
Wool weaving
Leather craft
Metal craft Pottery
Product conceptualisation
Knowledge of design
Knowledge of tools and materials
Knowledge of manufacturing process sequence
Quality production techniques
Craftsmanship and creativity
Health and safety
Tailoring – Knowledge of the right fabric for the occasion
Knowledge of tie and dye, patch work and traditional patterns (e.g. khiba).
Leather work – Making leather products (e.g. purses, bags, shoes, chairs, belts, diphate, dikgole and traditional attire).
Metal craft – making gates, troughs, bells, trailers, toys and others.
Fur preparation – making jackets, head scarf and sculptures
Wool work – making head scarf, jersey, dresses, etc.
Wood work – kitchen utensils, furniture, sculptures, building materials Product conceptualisation and
Knowledge of design
Knowledge of tools and materials
Craftsmanship and creativity
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SECTION 6:
COMPETENCY GAPS
6.1. Introduction
The majority of people in the IS who were surveyed reported lacking some entrepreneurial
competencies which could enable them to expand the activities and produce more products
for sale. The need to increase production was reiterated by most operators who cited
important benefits like creating opportunities for self-employment; jobs for the unemployed;
and generating enough money for decent living. This section thus explores the
competencies that participants did not have but thought they needed to run their businesses
or those they had at lower levels of proficiency than was required.
The competency gaps represents the difference between the current proficiency levels in the
competencies needed for different activities and the proficiency levels required for
excellence in performance. Respondents were asked to gauge their proficiency levels and
asked to rate the importance of acquiring more competencies in order for them to perform at
higher levels. On an ascending scale, 1 would represent a foundation or basic level of
proficiency; 2 moderate proficiency level; 3 high proficiency levels and 4 would denote an
expert or master craft person.
The gap was then determined by calculating the difference between the competencies
possessed and competencies required. A difference of 1 or 25% is considered low but since
it was undesirable to have capacity levels that are lower than required interventions are
needed to elevate the competencies to the highest levels in order to guarantee sustainable
high performance. A gap of 2 or 50% would be moderate but requires urgent action because
it implies that the IS operations can only go half-way towards achieving full production and
sustainable productivity. Any gap that is more than 2 or more than 50% would be deemed
unacceptable.
6.2. Skills-gap in Agribusiness
The average proficiency rating for competencies in the agri-business sector was 2 or ‘basic’
as Table 14 below indicates.
Table 14: Competencies needed in Agribusiness
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Sector: Agribusiness
Activity Competencies Traditional/ Indigenous skills
Existing level
Required level
Gap
Crop production
Cultivation
Crop maintenance
Crop harvesting Handling and
Processing
Entrepreneurship
Indigenous skill
Moderate proficiency
Expert proficiency
Moderate
Fishing Swimming and boat roaring
Health and safety principles
Fish species
Fish handling and processing
Entrepreneurship
Indigenous skill
Moderate proficiency
Expert proficiency
Moderate
Milk and Sour Milk Production
Milking cows
Sour milk processing
Food hygiene
Entrepreneurship
Indigenous skills
Moderate proficiency
Expert proficiency
Moderate
Poultry Poultry flock maintenance
Handling and processing
Entrepreneurship
Indigenous skills
Moderate proficiency
Expert proficiency
Moderate
Livestock production
Breeding
Livestock husbandry
Herd management
Environmental management
Entrepreneurship
Indigenous skills
Moderate proficiency
Expert proficiency
Moderate
As indicated in Table 14, the competency gap revealed was ‘moderate’ but required urgent
action in order to elevate the capacity of operators to excel in their activities.
Most of the respondents acknowledged that they lacked the necessary skills. They would
like to increase their proficiency levels but they indicated not having enough resources to
sponsor themselves for training. Many respondents preferred learning on-the-job not being
removed from their businesses to attend formal institutions. One other major challenge that
these people reported was access to financial resources and assistance. They needed to
obtain supplies and modern tools or machines to generate more income and/or create
employment opportunities but could not afford to pay for that.
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6.3. Competency gaps in Construction
Construction activities require persons with technical skills. Although there were some
participants who learned this trade through working with those who possessed the
competencies, many learned through formal training from institutions like brigades and
technical colleges. The sector accounts for 70% of respondents who said they had formal
vocational qualifications. A very small number (2%) of respondents had acquired skills
through the informal route. Overall, the skills needed for this trade are presented below.
Table 15: Competencies needed in Construction
Sector: Construction
Activity Competencies Traditional/ Indigenous skill
Existing level
Required level
Gap
Building
Understanding drawings
Building structures
Project management
Entrepreneurship
Non-indigenous
High proficiency
Expert proficiency
Low
Plumbing Reading technical drawings
Technical Installation
Craftsmanship
Entrepreneurship
Non-indigenous
High proficiency
Expert proficiency
Low
Carpentry Reading technical drawings
Wood working House fitting
Roof construction
Craftsmanship
Entrepreneurship
Non- -indigenous
High proficiency
Expert proficiency
Low
As Table 15 indicates the estimated competency gap was determined to be ‘low’ but
requires action to increase the productivity of the IS operators.
All respondents indicated their desire to learn new skills or update existing ones through
formal training in a training institution. This was particularly reflected in the aspirations of the
younger respondents who were prepared to pay for upgrading their skills. The reasons for
wanting to upgrade skills was to increase productivity, provide quality services and become
more competitive.
Working conditions in these businesses were described as good and most people in the
sector were self-employed and would employ others to provide assistance on a project by
project basis. Some said they would like to have access to loans so they could mobilise
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more construction equipment and register companies to operate more formally and grow
their business.
6.4. Competency gaps in Education
Tutoring was mainly done by highly educated people from neighbouring countries such as
Zimbabwe who could not find employment in the formal sector. Most people in this sector
rated their competencies as average and recognised the need for acquiring additional skills
to make them more proficient. Table 9 illustrates the competency level.
Table 16: Skills needed in Education
Sector: Education
Activity Competencies Traditional/ Indigenous skill
Existing level
Required level
Gap
Tutoring
Planning lessons
Facilitating learning
Assessing learning effectiveness
Entrepreneurship
Non-indigenous
High proficiency
Expert proficiency
Low
As illustrated in Table 9, the competency gap is therefore ‘low’ but required action to
increase the capacity of the operators to excel in their activities. Participants indicated that
they required more entrepreneurial competencies to grow their businesses.
6.5. Competency gaps in Real Estate
Respondents generally did not have any previous experience in this sector. Many of them
did not regard this activity as a full-time engagement. Besides general entrepreneurship or
business management related skills, people surveyed did not have any other technical skills
required for this sector. Overall, people who leased rooms or houses rated their competency
levels as average and viewed acquiring more competencies as extremely important. Table
10 illustrates this skill-gap.
Table 17: Competencies needed in Real estate
Sector: Estate
Activity Competencies Traditional/ Indigenous skill
Existing level
Required level
Gap
House leasing Pricing Contract
management
Entrepreneurship
Non-indigenous
High proficiency
Expert proficiency
Low
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The gap between the competency they had to rent their properties and the one they required
was estimated as ‘low’ which needs action to enhance the capacity of the IS operators in the
sub-sector. Most respondents desired further learning from other with experience and
knowledge in the area. They, however, were not willing to pay for their training.
6.6. Competency gap in Health and Social Services
People engaged in these services were self-taught, that is, they developed the
competencies naturally and perfected them through practices whilst others said they learnt
the skills by working with those who had the expertise.
Participants rated their proficiency level as basic and indicated that it was extremely
important for them to upgrade their competency levels. The competency gap is estimated to
be ‘moderate’ as Table 12 below indicates. This requires urgent action to ensure that
operators in the sub-sector can perform at levels that would enable them to excel.
Table 18: Competencies needed in Health and Social Services
Sector: Health and Social Services
Activity Competencies Traditional/ Indigenous skill
Existing level
Required level
Gap
Healing Diagnosis
Treatment and review
Entrepreneurship
Indigenous skill
Moderate proficiency
Expert proficiency
Moderate
Massage Human physiology
Manual dexterity Entrepreneurship
Indigenous skill
Moderate proficiency
Expert proficiency
Moderate
Respondents said they would like to work with other providing the same services to learn
other techniques which they did not know. Most people worked from home but others were
called to provide services at the residences of their clients.
6.7. Competency gap in Hospitality and Entertainment
Most respondents offering food and entertainment services did not have any formal training
and had acquired the skills through observing others. However, some of those offering tour
guide services had attended certificated training programmes at the Botswana Wildlife
Training Institute in Maun.
In this sector, respondents rated their proficiency level as average and viewed the need for
further learning as extremely important. The competency gap is estimated as ‘low’ as is
shown in Table 13. This gap requires learning interventions to increase productivity levels.
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Table 19: Skills needed in Hospitality and Entertainment
Sector: Hospitality and Entertainment
Activity Competencies Traditional/ Indigenous skill
Existing level
Required level
Gap
Catering Cooking and baking
Food processing and preservation
Health and hygiene
Entrepreneurship
Indigenous skill
Moderate proficiency
Expert proficiency
Low
Tour guiding Knowledge of history
Understanding the physical environment
Wilderness survival
Entrepreneurship
Indigenous skill
Moderate proficiency
Expert proficiency
Low
Dance Practical knowledge Creativity
Entrepreneurship
Indigenous skill
Moderate proficiency
Expert proficiency
Low
Music Understanding sound
Composing
Sound production
Entrepreneurship
Indigenous skill
Moderate proficiency
Expert proficiency
Low
Food servers and entertainers said they required more entrepreneurial competencies whilst
tour guides required both technical and entrepreneurial competencies. Some tour guides
wanted further formal training to get higher level certificates which would enable them to be
registered for provision of higher value guide services to tourists. They were even willing to
pay for the training.
In this sector, people would like to have access to financial assistance to get more modern
equipment. Tour guides would like to have motorised boats which they could hire out to
tourists and provide a more complete service which would increase the income they
generated. Working conditions were described as average but most people were self-
employed.
6.8. Competency gap in Manufacturing
The types of competencies required for operations were very wide and determined by the
specifics of the product(s) being manufactured. Participants in the manufacturing sector
indicated that they required competencies that could be classified into two categories:
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i. Product related knowledge and skills that could enable them to produce quality
products for sale. The set of skills vary according to the specific products (e.g.
baskets, clothing, leather items etc).
ii. Business related or entrepreneurship competencies which could be used to produce
goods for sale.
Most people involved in the manufacture industry perceived their proficiency levels to be
average but indicated a desire to upgrade the competencies to high levels in Table - below.
Table 20: Skills needed in Manufacturing
Sector: Manufacturing
Activity Competencies Traditional/ Indigenous skill
Existing level
Required level
Gap
Basketry Clothing Leather craft Metal craft Pottery Wood craft
Product conceptualisation and knowledge of design
Knowledge of tools and materials
Knowledge of manufacturing process sequence
Quality production techniques
Craftsmanship and creativity
Health and safety
Entrepreneurship
Indigenous skill
Moderate proficiency
Expert proficiency
Low
The estimated competency gap was ‘low’ which was low but required that learning
interventions be developed and implemented to increase competency levels to go above
either ‘high’ or ‘master craftsmen’ levels. Respondents indicated their willingness to take
advantage of opportunities for competency development if they were made available but
said they would be unable to pay for themselves.
Most of the challenges identified had to do with lack of raw materials especially for those in
remote or rural areas who had to incur additional costs travelling to bigger villages or urban
centres where raw materials could be sourced. They would welcome assistance with finance
to source materials, access to modern machines, large business orders and advertising of
new products so that they could expand their activities.
6.9. Competency Gap in Retail and Wholesale
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Most respondents in this sector acquired their skills outside the formal education and training
system. Table 21 below indicates the skills-gap estimated for this business.
Table 21: Competencies needed in Wholesale and Retail
Sector: Retail
Activity/Activities Competencies Traditional/ Indigenous skills
Existing level
Required level
Gap
Selling diverse products such as:
Clothing
Cosmetics Food
Handicrafts
Product knowledge
Basic sales and marketing techniques
Quality customer service
Risk taking
Communication and networking
Decisiveness and dynamism
Innovative and conceptual thinking
Indigenous skill
Moderate proficiency
Expert proficiency
Moderate
The competency gap was estimated to be ‘moderate’ based on the comparison between
their self-ratings of their proficiency levels and how they viewed the importance of acquiring
additional competencies that they deemed to require to succeed in their activity. The gap
required urgent action to elevate competency levels so that they are closer to those of
‘experts or master craftsmen’.
Those involved in retail activities said they would prefer to learn through opportunities
provided by organisations such Department of Out of School Education and Training
(DOSET) or open and distance learning like the Botswana College of Distance and Open
Learning (BOCODOL). Respondents reported needing competencies like business
management and entrepreneurship in order to be successful. Most would welcome
opportunities to upgrade their skills but lacked the resources to pay for training.
Their main challenge was lack of adequate financial resources and, therefore, would
welcome opportunities for assistance such as access to loans. Although most people in this
sector were owners of their businesses, a substantial number were those employed by
others to sell goods for them. Some of the employers were said to be people with jobs in the
formal economy. Working conditions were described as poor, with lengthy hours of work, no
job security and no formal contract of employment.
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6.10. Competency gaps in Services
Most respondents rated their proficiency levels as average and described their need for
further training as extremely important. Table 22 indicates these levels of proficiency.
Table 22: Skills needed in Services
Sector: Services
Activity Competencies Traditional/ Indigenous skills
Existing level
Required level
Gap
Cell phone repair
Technical repair skills
Health and safety
Entrepreneurship
Non-indigenous
High proficiency
Expert proficiency
Low
Cleaning Outdoor and indoor cleaning
Health and safety
Entrepreneurship
Indigenous skill
High proficiency
Expert proficiency
Low
Event management
Event planning
Event management
Entrepreneurship
Indigenous skill
High proficiency
Expert proficiency
Low
Hair and beauty
Hair and beauty products
Chemical application
Creative design
Entrepreneurship
Indigenous skill
High proficiency
Expert proficiency
Low
Graphic design and Art
Image conceptualisation
Creative design skills
Computer skills
Entrepreneurship
Indigenous skill
High proficiency
Expert proficiency
Low
Landscaping and gardening
Creative design skills
Plant maintenance
Health and safety
Entrepreneurial skills
Indigenous skill
High proficiency
Expert proficiency
Low
Laundry service
Washing different fabrics
Ironing different fabrics
Entrepreneurial skills
Indigenous skill
High proficiency
Expert proficiency
Low
Mechanical and electronic equipment repair
Mechanical and electrical/electronic systems
Technical repair skills
System maintenance
Entrepreneurship
non-Indigenous skill
High proficiency
Expert proficiency
Low
Shoe repair Technical repair skills
Indigenous skill
High proficiency
Expert proficiency
Low
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Craftsmanship
Entrepreneurship
Tyre repair Technical repair skills
Vehicle and tyre safety
Entrepreneurship
Non-Indigenous skill
High proficiency
Expert proficiency
Low
The competency gap was estimated as ‘low’ with most people saying they needed both
technical competencies and entrepreneurship abilities. The gap required action to make
operators in the sub-sector to excel in their performance.
While respondents offering mechanical repair, electronic repair, graphic design and
landscaping services preferred training in technical competencies, those offering other
services would prefer more business or entrepreneurial skills. Some indicated their
willingness but inability to sponsor themselves for training. Others were, however, willing to
invest in their own training in order to improve service quality and be more competitive.
There were challenges associated with lack of materials particularly for those in remote
areas where there were no suppliers selling required materials. Travel costs to source
supplies reduced income generated. Most people in the service sector were self-employed
but a few had employees who described working conditions as poor to average, with no job
security and no formal contract of employment.
6.11. Transport Services
Skills required for this sector were business management or entrepreneurial skills. In
motorised transportation, it was indicated that driving skills and other road safety
competencies were needed. Overall, the following skills were said to be essential.
Table 23: Competencies needed in Transport
Sector: Transport Services
Activity Competencies Traditional/ Indigenous skill
Existing level
Required level
Gap
Transporting people and goods
Transport operations management
Road safety skills
Entrepreneurship
Indigenous skill
Moderate proficiency
Expert proficiency
Moderate
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The estimated competency gap in this business was ‘moderate’ because most people rated
their current proficiency level as basic and viewed further training to be extremely important.
The gap needed urgent action to ensure that competency level moves closer to ‘expert or
master craftsmen’ levels which would ensure performance excellence. They would like to
learn from those with more talents but were neither willing nor able to pay for training. Their
biggest challenge was lack of customers and working conditions were described as poor to
average even though most people were self-employed.
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SECTION 7:
ECONOMIC BENEFITS
7.1 Introduction
One of the key requirements of this study was to explore the actual and potential benefits
that could be gained from the competencies that exist in the informal sector. It is not
automatic that mere possession of a skill translates into some benefits, both actual and
potential. For a skill to have an actual benefit to individual it should provide the person with
the capacity to produce outputs that can be used to experience a sustainable livelihood.
Potential benefit means that competencies could be used both currently and in the future to
produce outputs that could enable decent living. It is thus critical to establish the real benefits
that possession of competencies could have on the livelihood of people who are operating
outside the formal economy. Any competency that could be used for self-employment; the
employment of others; increased productivity; higher competitiveness; and/or raised
standard of living has a demand. Acquiring such a competency offers an opportunity for IS
operators to gain a significant return-on-investment.
This study has revealed that evidence that supports the long acknowledged belief on the
positive association between competencies and economic prosperity. This finding also
strengthens the compelling business case advanced by international bodies like the ILO,
World Bank and donor agencies that countries must promote sustainable livelihoods and
decent working through targeted development of competencies for those working in the IS.
By using both indigenous and formal skill, the IS could raise the living standard for those
involved in it and also could potentially contribute to the growth of the national economy
(Ohmagari and Berkes, 1997).
The economic and other associated benefits of using different competencies to produce
diverse goods and services in the IS are presented in this section. The benefits differ from
one individual to the other as well as from one activity to the other and also from one local
area to the other. The fact that most respondents said they were engaged in activities in the
IS because they had no alternative shows that the sector offers some benefit to those
operating in it. Analysis of respondents’ experiences revealed four key categories of benefits
accruing from the IS. These are: (i) self-employment, (ii) employment of others (iii) income
generation (iv) enhancement of livelihoods or poverty alleviation (v) gaining ‘a dignified’
social status.
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The findings were augmented with data obtained through observation that were recorded in
research journals. The reflective research journals were used to capture success stories
during field visits, including the creative activities done by some IS entrepreneurs.
7.2 Employment and Income Generation Opportunities
This study replicated some of the findings of 2007 IS Survey by the CSO which reported
more self-employed people (69%) and a smaller percentage of 27% with either permanent or
temporary jobs. Since most IS operations took place in the family context they created only
limited job opportunities for people outside the family. Thus it could be said that having the
competency to do something for a living was more directly beneficial to the person with the
skill and their family. Those with competencies for engaging in economically beneficial
activities are better placed to do something for a living than those who do not have.
As stated there are a number of cases which were observed or captured around the country
which demonstrated the value of possessing competencies that can facilitate participation in
IS activities. One such a case was that of a 45 year old man who worked in housing
construction projects around the village of Rakops The man acquired basic construction
skills informally from the experience of working as a labourer in housing construction. The
man said the wage was not regular and depended on availability of projects to his employer.
His story is captured below:
Whilst some respondents who had jobs in activities operated by others valued the cash
income they received, others opted to be paid in-kind such as the case presented below:
These cases illuminate the nature of employment in the IS where conditions are harsh and
the future remains uncertain for those employed casually by others. Most people who were
employed for long working hours reported receiving a wage of P500.00 per month. Whether
I have been working for this man for many years. Payment is irregular and varied but it’s so
helpful, meagre as it is. At least I am counted among workers. Yes, whe n my boss has
generated enough to make me smile, he does that, though this is on rare occasions .
Memory (pseudo name) does many jobs like plaiting hair, cleaning, doing laundry, gardening
and babysitting. She reported having ceased to work for cash because she has been cheated
on many occasions. She has now opted for non-monetary payment like being given old
clothes, being bought food or even being given left-over hair pieces after plaiting someone
which she then exports for sale in her home country - Zimbabwe
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self-employed or in a job, having competencies enabled people to earn a living outside the
formal economy, thereby allowing them to meet their basic needs and at times become
successful entrepreneurs.
Depending on the activity one was involved, in self-employment could at times earn income
of up to P50 000.00 per month, particularly those in construction and leather works. But
certain times even the self-employed did not make any income due to poor demand for their
services or products. Crafts like welding or metal works and mechanical and electronic
equipment repair also provided substantial income which would, during peak periods,
exceed that of people employed in the formal sector.
Whilst the IS offered opportunities for jobs the wages were very low and generally between
P20.00 and P500.00 per month. No one reported having a formal contract of employment
and working conditions were unregulated thus falling far short of the ILO’s ‘decent work’
standards. It should be noted that in many cases people were employed by relatives and
could not say how much they earned as in some cases they were compensated in non-cash
means such as being given clothing and food.
7.3 Better Living Standards/Poverty Alleviation
Despite the variations in benefits, all respondents in this study indicated that they benefited
from the activities they were doing in the informal economy and would not have survived if
they were unable to fend for themselves and their families. Evidence of high standards of
living (houses, vehicles and other amenities) could be observed at the households of those
who engaged in activities such as welding; kiosk operations; and vehicle repair services.
Since most people reported being drawn the IS as a last resort after they could not be
absorbed in the formal economy, the sector could be said to be saving from abject poverty.
To illustrate the point the following case was recorded:
Sadi (pseudo name) operates a kiosk (semausu). She explained that she comes from a very
poor family. She considers herself educated and less fortunate at the same time because she
could not get formal employment despite having earned a certi ficate in marketing management
and has some experience as a teacher. She explained that she originally depended on being
hired on temporary basis until five years ago when she couldn’t get any opportunity. She then
resorted to the informal sector which said was barely giving her any thing to make a decent
living. She tearfully enacted her work history of getting good salary compared to what she is
getting now despite the hard work and time put into her ‘semausu’. She has no decent shelter
and was forced share with ‘drunkards’. In the past, she has been forced to do odd jobs until she
decided to try something on her own (semausu) as she had no land to till and could not access
any loan from financial institutions.
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Another interesting case involved a Motswana and a Zimbabwean man, both in their mid
40s, in Letlhakane who teamed up to jointly collect scrap metal which they used to make
items like children toy cars or wire car toys (koloi ya ditshipi) and also do any metal repair
work. They explained that it was lack of employment and poverty that drove them to think
about their business which had managed to contribute positively to uplifting their living. They
reported good sales which at times would generate as much as P1, 500 a day.
The story of the two men in Letlhakane is similar to that of a male in his 30s in Kumakwane
who also collected used wire to make toy cars. He made different types, painted them with
different colours and displayed them along the main road where motorists and other
passerby would buy. The following is another case of a person who has been trapped in
poverty despite his efforts of schooling as the story below illustrates.
At Mankgodi, researchers came across six young men in their late 20s who graduated from
Brigades with a welding and fabrication qualification. They decided to partner and make a
living out of the skills they possessed. Although they reported that they did not get enough to
meet their needs, they reported having something to survive on. Stories are many indicating
that the informal sector is benefiting those engaged in it.
7.4 Social Recognition
Some people in this study reported that through engaging in the informal sector, people
started respecting them. A case in point was of a middle age men in Bobonong who said that
through his trade as a metal smith, he had started building a four-bed roomed house that
earned the family respect and recognition from fellow community members. He reported that
“ke motho gompieno mo setshabeng, ke a ijesa” – ‘I am looked upon as someone capable of
fending for his family’. He explained that the respect he got was an encouragement as he did
not let his family down.
Meeko (pseudo name) was born in a very poor family. He explained that he went to school
up to form five and proceeded to do his vocational training (Handi-Crafts). He stayed for
years without employment. He applied for a loan to start his business but could not meet the
requirement of having available land. Then ‘ ga ke bona go le maswe, go sena pelaelosego
ya gore tiro ga eo, ka simolola go sela ditshipi mo motseng’ – when I realised that I will
never get employed, I resorted to picking up used metal and doing this business. He
explained that the business was at least giving him something to buy food for the family. His
sales ranged from P10 - P150.00 per day.
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Another case is that of an elderly woman in her late 60s at Mmadinare who reported that it
was through her business of traditional spiritual healing (mosebeletsi) that people came to
know her and respected her. Although she could not afford to practice anymore due to her
health condition (cancer of the breast), she managed to build shelters for renting, which had
become another her source of livelihood outside the formal sector
7.5 Other Benefits
Some few people explained that the businesses they engaged in had enabled them to
supplement other sources of living like formal employment or retirement salaries. A case in
point was a lady in her late 40s who had a full-time job as a croupier (somebody in casino in
charge of a gaming table who collects and pays out the players' money and chips). She
reported that what she got was not enough in the following language:
Another case illustrating that the informal sector can be helpful in complementing or
supplementing other sources of living is that of an old woman in a small village of Semolale
in the Bobirwa Sub District:
7.6 Conclusion
Ke bona go le botoka go dira sengwenyana mo lapeng, go oketsa bonnyenyane ba tiro – I
felt it necessary to do some home-based business to supplement my salary. She
explained that since her ex -husband left, she could not cater for the children, so she
started selling sweets and other small items like cigarettes which could sell easily even
after working hours.
This lady explained that, selling these items including air time for mobile phones has
brought a new li festyle in her family where everyone had become business minded,
inclduing her children who would serve customers during her absence.
An old lady whom everybody refers to as Mma T, is in her late 60’s. She has lived in Semolale all her life. She bakes and sells bread to sustain her family. She was once employed as a teacher but was now retired. Baking bread has always been something she did even as a teacher. She explains how she started off just making fat cakes and taking them to school to sell, but they never lasted an hour. People in her community respected her hygiene and skill for making bread, which she explains as having been self-learned. She observes that the secret of her success was in her style of baking which she learnt from her mother as young girl. She gets her supplies from Bobonong or Selibe Phikwe sometimes and this at times become challenging because of the high prices of transport and the ingredients she uses. She said this sometimes demoralize her in her business. She went to training in Kanye (RIPCO) after she was approached by a non-governmental organization to sponsor her for training. After that she expanded her products to include biscuits, cakes and diphaphata. This was helpful to her because she could now help support her family after her husband died. The business grew and she couldn’t run it alone and employed one of her niece to help her with the dough mixing. She then sought a grant through the then Financial Assistance Policy (FAP) so she could construct bigger facilities in her homestead. MmaT has been running her bakery business for 20 years and she has diversified it to include selling groceries from a tuck shop, where she has also engaged one employee .She still hasn’t registered a company because she believes it requires too much capital to do this and she is in no position for the financial constraints.
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The key conclusion of this section is that IS activities are economically beneficial to those
who opted or were forced into the informal economy. Both the self-employed and those
offered jobs by others had something of benefit from the IS which they would otherwise have
not accessed if they had not gone into the informal economy to pursue a livelihood activity.
It was apparent that there were big variations in benefits with those who are self-employed
reporting earnings that were substantially more than those who had jobs from others. Some
trades such as welding, metal craft and leather craft yielded more gains than others. Even
those producing baskets and pots reported gaining some windfall income occasionally when
tourists bought their products.
In a nutshell, for many people in the IS, their activities are a means for subsistence and for
sustainable livelihood. The activities also facilitate successful entrepreneurship for others
people. Some people venture into the informal economy to augment their income from the
formal sector and some to kick-start their entrepreneurship aspirations.
Based on the economic benefits, income levels and popularity of the livelihood activities the
Table 24 shows the three top priority competencies.
Table 24: List of prioritised Competencies per Sub-Sector
Sub-Sector Areas prevalent Top Three Competency Areas
Agri-business North West and Chobe
Districts
i. Fishing
Eastern part of country ii. Crop production
Near cities, towns and
major villages
iii. Milk production
Construction All districts i. House building
All districts ii. Roofing
Cities, towns and major
villages
iii. Plumbing
Education Cities and towns i. Tutoring
Estate
Management
Cities, towns and major
villages
i. House leasing
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Health and Social
Services
Cities, towns and major
villages
i. Healing services
Cities, towns and major
villages
ii. Massage services
Hospitality and
Entertainment
Cities, towns and major
villages
i. Food catering
North West and Chobe
Districts
ii. Tour Guiding
Manufacturing Cities, towns and major
villages
i. Metal craft
Cities, towns and major
villages
ii. Leather craft
All districts iii. Wood craft
Retail Trading Cities, towns and major
villages
i. Air time sale
Cities, towns and major
villages
ii. Clothing sale
Cities, towns and major
villages
iii. Handicraft sale
Services Cities, towns and i. Vehicle repair
Cities, towns and major
villages
ii. Mobile phone repair
Cities, towns and major
villages
iii. Electronic equipment
repair
Transport Cities, Towns and major
villages
i. Transportation of goods
There are high value indigenous skills that could make a difference in the IS if they were
preserved and disseminated. These skills produce goods and services that are in demand
and are likely to continue to grow in value. It should be noted that the recently introduced
regulation of the brewing and sale of traditional beer would have adverse effect on the
preservation of the skill.
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Table 25 shows the list of indigenous skills that are likely to promote growth in citizens
standard of living. :
Table 25: List of Indigenous Skills
Sub-Sector Indigenous Skills
Agri-business Fishing
Harvesting of ‘Phane’
Harvesting of veld products
Poultry (Indigenous Chicken)
Sour milk production
Production of traditional crops such as maize, melons, ground nuts, pumpkins, sweet cane, sweet potatoes etc.
Construction Thatching
Health and Social Services Healing
Herbalism
Massage services
Hospitality and entertainment Tour guiding
Traditional singing and dancing
Traditional brewing
Traditional food catering
Manufacturing Wood crafting
Basketry
Pottery
Leather crafting
Services Transporting of goods using donkey carts
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SECTION 8:
Policy Environment and Investment in Skills Development for the Informal Sector
8.1. Introduction
This section reports on the findings from both document review and from the view of
respondents on investment in skills development. As already noted the majority of IS
operators had no or very little formal education. They thus could not clearly articulate their
views on issues around investment in competency development for the sector. But with
good practice well documented in the literature it was possible to reflect on the prevailing
policy environment. It was also possible to make proposals on how investment in skills
development for the IS could be managed in the future.
A number of issues could be raised when discussing the requirement for investment in skills
development. This section however focussed on (i) identifying providers of skills for the
informal sector, and (ii) the policy environment impacting investment in skills development
for the IS.
8.2. Formal Providers of Skills Development in the IS
The fact that the majority of those employed in the IS gave little formal education means that
the sector itself is the source of competencies for those who operate in it. This does not
mean that the formal education and training systems does not provide some of the
competencies required for successful operation in the informal economy. In fact for most
operators in the IS, the only opportunity for education and training was in the formal system,
that is if they ever had access to primary or secondary and in some cases to vocational and
technical training. Even the apprenticeship system in Botswana was developed to cater for
people who are formally employed in the private or public sectors and is therefore
inaccessible to those in the informal sector. That leaves only the informal traditional
apprenticeship process which would sometimes be available for family and other close
members. There is no evidence that traditional apprenticeships have been developing in
Botswana and some of the retail trading operators selling craft products were sourcing them
from non-citizens, especially from Zimbabwe.
The following table (Table 24) presents a list of the existing formal institutions providing
skills that are needed for activities taking place in the IS:
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Table 26: Institutions Providing Skills Required in the IS
Type of Provider
Institutions Nature of Competencies
Activity Sub-Sector
Vocational Institutions
Brigades Various trades and crafts such as: metal work, wood craft, horticulture, technical repair
Service Manufacturing Hotel and Catering
Madirelo Testing Centre Trade testing, apprenticeship
Service Hotel and Catering
Auto Trade Training Centre Various auto trades Service
Rural Industries Innovation Centre
Baking, Agriculture, Environmental
Agribusiness Retail trading Services
Road Training Sector road maintenance Service
Rural Industries Innovation Centre
metal work, carpentry,
Manufacturing Service
Construction Industry Trust Fund
construction Construction
Public Technical Colleges Various trades and crafts
Agribusiness Service, Manufacturing, Hotel and Catering
Other BOTA and TEC Accredited Institutions
Various technical and entrepreneurial competencies
All sub-sectors
Colleges
Botswana Accountancy
College
Business and
entrepreneurial
competencies
All sub-sectors
Institute of Development Management
Business and Entrepreneurial Competencies
All sub-sectors
BOCODOL Various technical and entrepreneurial competencies
All sub-sectors
Botho College Various technical and Entrepreneurial competencies
All sub-sectors
Gaborone Institute of Professional Studies
Various technical and Entrepreneurial competencies
All sub-sectors
Universities
University of Botswana Generic Academic and Professional
All sub-sectors
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Ba Isago University Generic Academic and Professional
All sub-sectors
ABM University College Generic Academic and Professional
All sub-sectors
Limkokwing University of Creative technology
Generic All sub-sectors
New Era University College Various technical and Entrepreneurial Competencies
All sub-sectors
Botswana College of agriculture
Agribusiness Agribusiness
Government and Parastatals
Botswana Wildlife Training Institute
Wildlife, tourism and environmental conservation
Agri-business
Botswana Police College
Botswana Prisons College Welding, carpentry, horticulture
Manufacturing Agri-business
Denman Rural Training Centre
Agriculture - farming Agri-business
Water Utilities Corporation Training Centre
Technical trades Service
Botswana Power Corporation Training Centre
Technical trades Service
NGOs
Cooperation for Research and Development
Research, community development Training
Service
Camphill Community Trust Wood craft Manufacturing
KURU Development Trust Artistic and leadership
Service, manufacturing
Community Associations Various crafts Agri-business Manufacturing
OTHERS
Various Driving schools Road safety, road signs, driving
Service
Rehabilitation Centres Life /empowerment skills
Service Agri-business Social Services
Lobatse Tannery Tanning and leather processing
Manufacturing
Lobatse Clay Works Brick moulding Manufacturing Construction
Junior Achievement Botswana
Business and Entrepreneurship
All sub-sectors
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The above list includes diverse providers as universities, vocational institutions, colleges,
community associations and trusts, employer sponsored training centres and accredited
institutions. These providers offer programmes that could equip IS operators with skills that
could enhance their functionality and employability in the IS. However the training
programmes are largely out of reach for the majority of those in the informal sector due to
their admission criteria. The minimum educational qualifications prescribed in the
admissions criteria excludes the majority of young lowly educated people currently
operating or potentially employable in the IS.
The reason why the provision of competencies for the IS has not undergone purposeful
development in Botswana stems from the orientation of public policy towards the formal
economy and the formal education and training system. The policy environment could be
said to have exclusive of the IS. There have however been programmes supported by
Government and international donors which resulted in the targeting of informal sector
operators. These include the village entrepreneurship training scheme offered by RIIC and
other programmes offered by community associations such as the Botswana Council of
Women.
8.3 Policy Environment
The table below summarises existing policy framework that can benefit the informal sector.
Table 27: Public Policy Environment
Policies and Programmes Actual or potential influence on investment
Decent Work Country Programme for Botswana, 2011
A results-oriented framework aimed at the attainment of full and productive employment and decent work for all, including women and young people in Botswana. By signing this framework with the ILO, Botswana was committing itself to promoting employment creation through an enabling environment for job rich-economic growth, enterprise development, skills development and formalization of the informal sector.
Revised National Youth Policy, 2010
Highlights social integration of youth, empowerment, skills improvement and creation of opportunities for personal growth. The policy commits Government to investing in creating an enabling environment for the development and welfare of the youth
National HRD Strategy 2009 – 2022
Aims to ensure that Batswana have equitable access to range of employment opportunities both nationally and
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globally so as to advance to the fullest extent possible their aspirations for personal, social and economic progress and so that they can contribute to the development of a globally connected prosperous nation. The emphasis on lifelong learning and demand-driven HRD requires an integrated approach to skills development which focuses on both the formal and informal sectors of the economy
Tertiary Education Policy, 2008
Seeks to ensure that more citizens aged 18-24 have access to quality tertiary education that is responsive to every element of their personal well-being, social progress and economic development and which advances to the fullest extent possible their potentials for learning and their individual capacities in a manner that will further their aspirations and contribute to the development of a globally connected and prosperous nation. The policy appears to focus on formal post senior secondary education but the creation of the HRDC which integrates vocational education and training means that the policy needs review to include technical education, vocational and entrepreneurial training
National Development Plan 10
Emphasises sustainable rapid economic growth and adequate supply of qualified productive and competitive human resources National development is about all sectors and it should be premised on evidence-based human development focused in reducing poverty
National Policy on Women in Development
Among others the policy focuses on elimination of all negative economic and socio-cultural practices as well as inappropriate laws which would be done through eliminations of all form forms of inequalities and inequities among women and men and promotion of education and skills training which will be done by ensuring that education is gender sensitive With more women found in the informal sector the policy has encouraged the inclusion of women in programmes to increase their skills and facilitate inclusion in development.
Vocational Training Act 1998 The legislation was the foundation for creation of BOTA and the setting up of the Vocational Training Fund. BOTA is responsible for developing, coordinating and promoting vocational training up to certificate level. The developmental mandate and the management of the vocational training levy places it in a good position to include training for the informal sector and thereby raise sectoral productivity levels
Vision 2016 The National Vision aims for a nation that is educated and informed as well as prosperous, productive and innovative. The increasing recognition of the role of the informal sector in national economic development and poverty alleviation endeavours presents enormous opportunity for the integration of informal sector skills development
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into the mainstream of education and training delivery.
Revised National Policy on Education, 1994
This is the overarching policy guiding all education and training in Botswana. It represented a major reform to the educational system in the country. It informed the development of the National HRD Strategy which recognises the need for new thinking and a more strategic approach to skills development. No intervention could be said to be strategic if it left out people operating in the informal economy the majority of whom survived on the fringes of abject poverty.
8.4 Conclusion
Against this background and in line with the National HRD Strategy, investments in skills
development can only be justified if they are value adding. There must be sufficient demand
for the skills to make a compelling case for allocating investments. The size of the informal
sector in Botswana coupled with the rate of unemployment and level of poverty suggest a
compelling case for targeted interventions that are demand driven to stimulate skill
development in the informal sector. The ability of the sector to continue to offer alternative
employment and poverty alleviation opportunities would increasingly depend partly on the
availability of skills to boost the sector’s productivity. The approach to delivering the skills
needed by both the formal and the informal economy must be part of a holistic national
strategy for sustainable economic development
The development of competencies is the only sustainable lever for countries to create
employment, income generation opportunities and reduce poverty. Both production and
productivity could be induced through high skill levels.
For the informal sector, skills are the only passport to sustainable livelihoods characterised
by decent work conditions. Decent work can only take place in workplaces that promote the
wellbeing of people and give them income and an opportunity for a dignified life.
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SECTION 9:
BENCHMARKING
9.1. Introduction
The Terms of Reference proposed that evidence of benchmarking on similar initiatives be
made with other SADC Countries. To address this requirement, the Researchers conducted
a comprehensive document review to identify good practices. Good lessons have been
drawn from countries whose interventions are positively impacting the IS.
Although there are number of countries with special lessons to learn from, the scope of this
project as well as the intent for benchmarking made it necessary for researchers to focus on
Malawi, Namibia, South Africa, Tanzania and Cote d’ Ivore, which are among some of the
countries which have positively step laddered in improving their informal sector. The
benchmarking focused more on skills development and its supporting environments.
9.2. Benchmarking Case Studies
Below are the cases that have been reviewed:
Country: Malawi
Initiative:
Skills Development and Income Generation Project and the Technical Entrepreneurship
and Vocational Education and Training Policy.
Objectives:
Contribute to government efforts to reduce poverty through human development and
improve the capacity of the poor to actively participate in broad-based sustainable
economic activities. It focused on women and youth.
Processes:
TVET fund of 1% of the total basic emoluments, provision of training for trainers; support
to vulnerable groups and other beneficiaries; assistance with equipment, civil works,
specialised services; establishment of credit fund and support to operating costs.
Outputs and outcomes:
Functional literacy, vocation skills development, institutional strengthening, project
management capacity
Lessons:
Sustainable funding and need for demand orientation and competency based approach.
Source:
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Appraisal Report: Skills Development and Income Generation Project 2001; UNESCO
(2010) TEVET Policy Review Malawi
The information below indicates some of the characteristics that make Malawi’s IS worth
learning from:
Wide political support
Existence of national bodies (Malawi Union of the Informal Sector and Malawi
Congress of Trade Union (MCTU) advancing the interests of the Malawi informal
sector
Integrated, targeted and systematic vocational skills training focussing on both formal
and informal economy
Establishment of statutory bodies responsible for both IS and formal sectors, e.g.
Technical Entrepreneurial Vocational Education and Training (1999)
Existence of TEVET Qualification Framework which extends accreditation to cover
IS operators.
The Malawi Union of the Informal Sector established in 2000 serves as a strong voice for
informal sector operators and workers. It organises, protects and negotiates issues around
the rights of informal economy workers and businesses.
(http://www.mywage.com/main/labour-law/DecentWorkCheck-Malawi/informal-sector/the-
informal-sector/Retrieved 19 April 2012)
Malawi actually has a number of other institutions and organisations supporting the informal
sector. These include the Small Enterprise Development Organisation of Malawi (SEDOM),
Development of Malawi Union of Savings and Credit Cooperation (MUSCO), the Rural
Enterprises and Agribusiness Development Institutions Project and others. SEDOM, for
example provides credit to the informal sector. It has regional offices and clients make
application for loans through local offices. DEMAT on the other hand provides advisory
services. It also conducts workshops on business related topics throughout Malawi. Its main
objective is to assist small-scale enterprises to become auto sufficient (O’Regan, Wescott,
and Butler, 1989).
The existence of TEVET Qualification Framework is worth mentioning especially its role in
the accreditation of IS. The Malawi Entrepreneurship Development Institute (MEDI) also
offers business and entrepreneurship training packages; technical skills for entrepreneurship
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and business management training for illiterate or semi-literate beneficiaries. The Salima
Rural Vocational Training College offers range of skills. Their training involves hands-on
practical programmes to prepare the trainees to work in rural communities using the skills
they have learned and to train others.
Country: Namibia
Initiative:
Establishment of Namibia Training Authority and Community Skills Development Centres
(COSDECs) and remodelling of the vocational training system to ensure relevance,
efficiency and quality
Objectives:
Promotion of integrated national economic development and alignment of vocational
education to the economic needs.
Processes:
Demand driven and competency based approach suitable for diverse individuals and
groups, development of curriculum and training materials to enhance institutional capacity
Outputs and Outcomes:
Job creation, income generation and reduction of vulnerability of women and youth and
rural poor
Lessons:
Source:
Namibia National Vocational Policy, 2005; Ndjode-Siririka (2003) The Vocational Education
and Training System of Namibia: Towards a Flexible Quality System, Conference Paper
Namibia’s IS thrives on a number of factors including the following:-
Linking rural producers with the Global market
More operators than workers
High youth involvement (19-29 years old accounting for 63.8% of IS
Provision of benefits to workers (accommodation, food rations and transport
Active associations (Namibia Small Traders Association –NAMSTA and
Organisation of Shebeen Owners
Some good lessons coming out from the Namibian IS activities are the reforms to the
country’s technical and vocational education system. These are noted for making this
system more effective and accessible to disadvantaged sectors of society. Through the
Ministry of Education’s Namibia Training Authority (NTA), the vocational training structure
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and curriculum have been re-modelled to ensure their relevance, efficiency and quality to all
sections of the society.
The political will is also noted as another aspect that makes the Namibian informal sector
attractive. The Prime Minister, for example, has led the drive for training for the development
and growth of self-employment and SME sectors of the economy. Organisations such as the
Namibia established Community Skill Development Centres (COSDECs) are also there to
provide technical and vocational training among the most disadvantaged segments of the
population. For instance, the Omba Arts Trust also is there to support rural craft producers
throughout Namibia, whose jobs would be classed as ‘informal’. It supports with training in
craft production and the development of new designs, and the purchase of high quality craft
products, which then attract Fair Trade prices. (http://www.namibian.com.na/letters/full-
story/archive/2009/october/article/look-at-the-informal-sector/Retrieved 19 April 2012)
Despite its small population and limited resources, Namibia is at the forefront in the region in
the development of a new TVET qualifications framework covering unit standards,
curriculum and training materials (Singh, 2011). Efforts are made to balance skills training for
modern industry and the informal SME sector. It uses a unique practical approach to ensure
that the TVET system is effective and accessible for learners in different sectors. As a result,
the skills development for the IS was beginning to re-emerge as a crucial area for TVET
development. It should be pointed out that simply restructuring for the existing vocational
training systems alone was not sufficient. It has been suggested that bottom up approaches
such as skills recognition and certification should serve as a support in programmes for
upgrading skills and increasing productivity in the informal sector (Singh, 2011).
Country: South Africa
Initiatives:
National Skills Fund established in 1999, National Skills Development Strategy 2011,
National HRD Strategy 2011
Objectives:
Meet national strategic skills development objectives for unemployed and other targeted
special needs groups and sectors, promote self employment and reduce poverty.
Processes:
Fund controlled by Government from a fifth of 1% payroll levy; sectoral training funds
financed by 80% of levy proceeds, National Strategy, National Skills Plan and sectoral
plans
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Outputs and Outcomes:
Development of critical technical skills, reduction of unemployment and stimulation of
economic development
Lessons:
Strategic alignment between national, sectoral and regional economic and skills
development interventions, focus on vulnerable groups such as youth, women and rural
and urban poor
Source:
ILO (2002) Skills Development in Sub-Suharan Africa; DOL (2011) National Skills
Development Strategy; South Africa National HRD Strategy 2009 - 2020
Country: Tanzania
Initiative:
Integrated Training and Entrepreneurship Promotion Programme
Objectives:
Support for target groups in the informal sector with emphasis on female craft workers
Processes:
VETA/GTZ Project – Pilot programmes for information sector training. Covered food
preparation, meat dressing, mushroom growing, carpentry, vegetable and plant nursery
and building construction.
Outputs and Outcomes:
Shift to competency based education and training, short term courses suited to informal
sector, led to increase in production, sales and profits and in some cases formalisation of
business.
Lessons:
Need for participatory approach to planning and implementation of training; a mix of
technical and business management competencies. There is need for visible commitment
from government and demonstration of political will and value for the informal sector as a
contributor to the national economy.
Source:
World Bank(2002) Skills Development in Sub-Saharan Africa
In Tanzania, skills development in the informal sector has been supported by:-
Strong political support
A ‘decent label’ for the sector (Thread of the Fabric of our society’)
Overall positive attitude towards the IS
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A large participation in the IS by political actors
Active involvement of social security institutions such as savings and
cooperatives and credit societies
Welcoming of free and effective press (media involvement)
Active associations like the Women's Beer Cooperative
Gaining political will and support has been shown to boost the potential of the informal sector
in Tanzania. President Benjamin Mkapa has been cited describing the IS as a key thread of
the fabric of the Tanzania’s society, and economy (Milan, 2000). The President called upon
the government (both central and local) and for the people in the public and formal sector as
a whole, to accept the informal sector for what it is, a reality of life, an important provider of
goods and services, and a market for goods and services provided by the formal sector.
Tanzania’s story also teaches us that the way we portray the IS has an impact of how the
sector is treated and supported. It needs a decent label, for example, 'thread of the fabric of
our society' that will attract even the politician themselves as Tanzania reports that “a large
percentage of political actors partake in the informal economy as a source of additional
income and networking and see no reason to impede these activities” (Millan 2000). In a
nutshell, the informal sector in Tanzania plays an important role in the development of a civil
society operating alongside formal industries.
Country: Cote d’Ivoire
Initiative:
Fonds de development de la Formation Professionalle (established in 1991 by merging
Apprenticeship Fund and the Continuing Vocational Training Fund
Objectives:
Apprenticeship training and continuing in-service training support for skills development
programmes for informal sector.
Processes:
Apprenticeship tax (0.4% of payroll); continuing vocational training tax (net 1.2%) and donor
funding.
Outputs and outcomes:
Skills development in different economic sectors and employment creation.
Lessons:
Need for government activism and for integrated approach to national economic
development.
Source:
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AfDB; OECD; UNDP and UNECA (2011) African Economic Outlook: Cote de Ivore 2011;
World Bank (2002) Skills Development in Sub Saharan Africa
Ghana
Initiative
Establishment of community-based vocational apprenticeship programme as part of the
Poverty Reduction Strategy
Objective
Skills and entrepreneurial development of the youth so that they develop employability skills
Processes
Adaptation and coordination of existing initiatives and mobilisation of resources to support
acquisition of employability and entrepreneurial skills. The programme combines formal and
traditional forms of skills development to increase relevance of vocational and technical
training; advance traditional apprenticeship training and promote entrepreneurship among
youth.
Outputs and Outcomes
Poverty alleviation among youth as a result of formal and non-formal skills development
programmes. Increased relevance of training curriculum; stronger alignment between
demand and supply of skills; and improved certification system
Lessons learned
Need to integrate skills development targeting the youth into overall national poverty
alleviation strategy. Need for collaboration of key stakeholders and for strong coordination to
ensure accountability for investments.
Source
Hans Christian HAAN (2002) Training for Work in the Informal Sector, ILO
In Ghana media practitioners were called upon by the Deputy Minister of Information to
contribute to the promotion of economic activities within the informal sector as that would
help speed up the development process. While the media could contribute in a number of
ways, the Minister urged them to publicise or spread personal success stories of some
economic operators in order to spur other citizens to pursue similar ventures thus fulfilling
its contribution in helping the country stimulate wealth creation and economic growth for the
many citizens who are currently left out of the economic activities especially in the formulate
employment. (http://www.modernghana.com/news/39313/1/media-urged-to-promote-
informal-sector.html/Retrieved 19 April 2012).
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Another thing that is worth emulating from Ghana’s experience would be the stakeholders’
involvement in the informal sector where a number of non-governmental organisations,
including unions such as the General Agricultural Workers’ Union, of the Ghana Trades
Union Congress are partners. It is not surprising that the size of Ghana’s informal sector
reportedly accounts for 80 percent of the total labour force (Hormeku, 1998) and this is partly
attributed to its structural adjustment since the mid-1980s which came along with the
shrinking formal sector and the expansion of the informal sector. It is a heterogeneous
sector.
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SECTION 10:
Reflections and Recommendations 10.1. Introduction
This study was carried out primarily to explore the IS and produce a list of competencies
needed in the sector. The list was to include indigenous skills that could potentially promote
growth in citizen’s standard of living. Since the focus was on those competencies that could
make a difference, parts of this report were dedicated to analysing the magnitude of the
required competencies in the IS and discussing their economic benefits. The study
highlighted the need to invest in skills development to address identified deficiencies where
a compelling case had been advanced.
These reflections and conclusions are therefore presented on the following: (i) competencies
needed in the informal sector (including indigenous/traditional skills), (ii) economic benefits
(perceived and potential), (iii) competency needs of the IS, including areas for further
research (iv) strategies for addressing identified needs, including cost implications (v)
proposals for improving working conditions through investment in skills development (vi)
policies and programmes impacting investment in skills and (vii) the role of BOTA and other
key stakeholders.
10.2. Skills Needed in the Informal Sector
With regard to the competencies used and/or needed in the informal sector, the following
has been observed from this study:
10.2.1. Competencies used and needed in the informal sector
The sector is heterogeneous and there were varied enterprises with similar and
also diverse skills development needs.
While some activities could be operated predominately using skills learned from
the formal education and training system, some activities such as basketry,
pottery, tour-guiding, hunting, agricultural production depended on indigenous
skills.
The majority of respondents in this study did not have any formal training relevant
to the live hood activities they were operating. About, 92% reported having
gained skills outside the formal education and training system in contrast to 6%
who got the skills they used from formal learning programmes.
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The low formal educational backgrounds of IS operators could be said to be the
primary reason for their inability to access formal training opportunities. The
majority had gone as far as JC (33% and standard 7 (26%). Only 6% had some
technical skills from brigades and vocational training colleges.
The majority of IS operators were found to have a need for generic entrepreneurial
competencies which include, basic sales and marketing, quality customer service, risk
taking, communication and networking, decisiveness and dynamism and innovative and
conceptual thinking. In addition, operators in all sub-sectors were found to require higher
levels of proficiency in the respective technical skills required to undertake the diverse
activities they were involved in.
It was also found that there were no formal programmes offering indigenous or traditional
skills which were predominantly acquired through learning by doing, apprenticeship,
observation or trial and error.
10.3. The Economic Benefits of Skills in the Informal Sector
The following were the economic benefits of the competencies required by the IS that they
study found:
Varying degrees of gainful participation in the IS was reported with those who
were self-employed reporting higher earnings than those who got jobs from
others.
For the majority of people, the income generated from their operations was a
means for subsistence and in most cases inadequate for sustaining the
livelihoods of the vulnerable less educated poor.
Some trades yielded more gains than others. For example, there was evidence of
successful business operations for some in manufacturing where they produced
goods in high demand such as trailers, livestock troughs, leather craft, traditional
pots, baskets and sculptures. Activities such as basketry and pottery were also
found to be particularly profitable in areas frequented by tourists. The
construction and services (especially mechanical and electrical /electronic epair
services etc.) sub-sectors were other high-value activities.
The average incomes for those employed in jobs in the IS were within the range
of P200.00 to P500.00 with some reporting irregular payments and others being
paid in a non-monetary ways. The availability of some jobs was dependent on
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the activity proprietors having projects such as being contracted in housing
construction.
Generally very few of people in the IS showed much potential for attaining
sustainable livelihood or graduating into the formal economy because they
lacked the financial resources and raw materials for production, lacked markets
for their trades, possessed low skills acquired informally and operated in poor
(unregulated) working conditions.
All respondents in this study indicated that their informal activities had provided some
opportunity for a livelihood, even if as in most cases, such livelihood was not sustainable.
Thus it can be concluded that the IS provides opportunities for poverty alleviation and in
some cases the attainment of high standards of living characterised by higher income
and elevated social status.
10.4. Competency Gaps in the Informal Sector
With the majority having low levels of formal education, it was not surprising that there were
diverse learning needs in the operators involved all IS activities. The following are some of
the highlights:
Most people in the informal sector either have no or little formal education.
The majority (92%) did not have any formal training and only a small fraction of
less than 6% had had access to vocational training.
The majority of those with indigenous skills were either self-taught or had learned
through traditional apprenticeship which involved observing and copying/imitating
others like parents, peers and fellow operators.
Many informal sector operators were very keen to improve their skills but did not
have the resources and the opportunities to access training. Most could not even
articulate the nature of competencies they required.
Overall, most people in the IS lacked entrepreneurial competencies required to
grow their activities to become more productive and competitive.
10.5. Providers of Skills
There are a number of providers of skills for IS activities and these include the following:
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Government was the biggest provider of skills training in Botswana, albeit, focussed
on the formal sector.
Skills providers such as vocational institutions, and brigades target clients with JC
and above and these educational requirements cannot be met by the majority of
people who participated in this study.
Providers of indigenous skills were largely unorganised when compared to those who
provided competencies that could be sourced from the formal education and training
system
Indigenous skills were largely unrecognised and most of them were either in decline
or near-obsolete as demonstrated by some IS operators who could not even trace
the origin of their skills.
There was widespread concern over the credentials needed to access training
entities such as vocational institutions and brigades that made it impossible for those
with low education to enter these institutions.
It is concluded that there is a strong business case for purposely integrating the
development of skills for people operating in the IS into the national human resource
development strategy. Such an integration would ensure that investments are made to
promote skills with high economic value, especially targeting vulnerable groups such as
women and the youth who are adversely affected by the conditions in the IS which are below
those required for attaining sustainable livelihood.
The existing policy environment was created to support the growth and development of the
formal economy. The education and training system was primarily geared at advancing the
acquisition of knowledge and skills through the delivery of formal programmes that are
largely inaccessible to IS operators.
The definition of ‘informal sector’ in public policy documents is inclusive of formally
registered small and medium enterprises who operate in regulated markets for both products
and for labour. This definition excludes the lower levels of operators involved in unregistered
and unregulated activities that were the target of this study. Whilst most public policy
documents on programmes such as those financed under CEDA and LEA are referred to as
though they belong to the IS, the reality is that the real IS of poor and uneducated operators
plying their unregulated and unregistered trades in the informal economy continue to be
marginalised.
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10.6. Recommendations
In the light of the findings of this study, the following recommendations are proposed:
1. Adoption of the Draft National IS Skills Development Strategy and its integration into
the National Human Resource Development Strategy.
2. BOTA should coordinate the process of defining the unit standards for the
competencies, including indigenous skills, that are required by the IS so that they
could be offered to those who need them. This would enable their assessment,
recognition and certification. This recommendation is made notwithstanding the
merger between BOTA and the Tertiary Education Council which is planned to take
place during 2012.
3. BOTA should collaborate with key stakeholders in developing skills development
programmes targeted at boosting the IS so that it contributes to the attainment of
decent work, sustainable livelihoods and poverty eradication. The stakeholders
includes IS operators, community associations, structures with a mandate to promote
SMMEs and institutions promoting the interests of women and the youth.
4. Apprenticeship schemes aimed specifically at the IS should be recognised as the
pillar of skills development for the sector and supported through proper investment
and relevant policies.
5. The indigenous skills that are declining, though exhibiting potential to yield greater
economic benefits for those in the IS should be revitalised through proper investment
and relevant policies.
6. Entry requirements and fees for learning programmes offered by training institutions
should be relaxed to accommodate the educational levels of those with J.C and
below. Skills development for the IS should not be hampered by their low levels of
education.
7. There is need to strengthen entrepreneurship education in lower levels of the formal
education system (primary and secondary) to help those who fail to advance to
higher levels or may not want to continue with formal education to engage in
livelihood activities including starting their own enterprises.
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8. Efforts should be made to raise the educational levels, especially the numeracy and
literacy of those in the IS through non-formal training and short competency-based
and modularised programmes.
9. IS activities that have demonstrated high potential for economic benefits and
sustainable livelihood like wholesale/Retail, manufacturing and services should be
supported and strengthened through integrated interventions that include training.
10. For the IS to be recognised as a major bridge to economic diversification, proper
incentives in the forms 0f credit incentives, awards of excellence, establishment of
local and regional markets, opportunities for cross-border trading, flexible bye-laws
and other facilitating environments should be explored.
11. IS should be viewed as a sector with the potential to supplement or complement job
creation and income generation that the formal economy cannot provide for a large
part of the national population.
12. Strategic partnerships should be formed or strengthened between the Government
as the current main provider of skills for all economic sectors and other potential
providers such as private institutions, CBOs and NGOs.
13. The role of media as a critical stakeholder in the IS (marketer, an advocate, a public
eye, etc.) should be recognised and supported by the Government and other activists
in the IS.
14. Direct dialogue on investment in skills development between BOTA and other policy
makers as well as clients should be initiated and strengthened.
15. An enabling environment characterised by a supportive regulatory environment
should be created for citizens to explore the huge opportunities for sustainable
livelihood offered by the IS.
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2012, Gaborone
Government of Namibia (2005) National Vocational Education Policy, Windhoek
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York. M. E. Sharpe, Inc.
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Hormeku, (1998) The transformation and development of the informal sector and the role of
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Conference of the ILO meeting in the 90th Session, 2002, ILO
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us_Knowledge.pdf
Kapunda and Mmolawa (2007) “The Role of Informal Sector and Self-Employment in
Poverty Alleviation in Botswana” Paper presented at the National Conference on
the Informal Sector of the Botswana Economy, BIDPA, Gaborone
Marsick, V. J., & Volpe, M. (Eds.). (1999). Informal learning on the job. Advances in
Developing Human Resources, 3.
Miller, V. (1994). NGOs and grassroots policy influence: What is success? Boston:
Monnane, M., Moitlhobogi, P. and Fidzani, N. H”, Paper presented at the National
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(2007) The role of the informal sector in the diversification of Selibe – Phikwe:
Mulinge, M. and Munyae, M. (1998). The Persistent Growth in Size and Importance of the
Informal Economy in African Countries: Implications for Theorising the Economy
and Labour Market. African Sociological Review , Vol.2 (2), 1998.
MyWage.org (n.d). The Informal Sector. Retrieved 26 February, 2012/
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sector/the-informal-sector
Narayana, N; Kaino, D. K. and Sekwati, L. (2007) Informal Sector Experience of Developing
and Transitional Economies: What Lessons Can Botswana Learn” , Paper
presented at the National Conference on the Informal Sector of the Botswana
Economy, BIDPA, Gaborone
O’Regan, F. Wescott, C. G. and Butler, G. (1989). Malawi: Informal Sector Assessment,
prepared for Labat- Anderson, Inc. and AID/AFR/MIDI. Retrieved March 15,
2012 from http://pdf.usaid.gov/pdf_docs/PNABN271.pdf.
Palmer, R. (2007). ‘Skills development, the enabling environment and informal micro-
enterprise in Ghana’. University of Edinburgh.
Singh, M. (2011). Skills Recognition in the Informal Sector. UNESCO Institute for Lifelong
Learning, Hamburg, Retrieved 19 April 2012;
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http://www.norrag.org/issues/article/1452/en/skills-recognition-in-the-informal-
sector.html.
The Namibian Newspaper, (2009). A look at the informal sector. Retrieved March 4, 2012
from http://www.namibian.com.na/letters/full-story/archive/2009/october/article/look-at-the-
informal-sector/
UNESCO (2001) TEVET Policy Review Malawi, Lilongwe
United Nations Economic and Social Council Economic Commission for Africa (2012).
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Town, South Africa 18-23 January 2012.
Walther, R. (2011) Building Skills in the Informal Sector. Background paper prepared for the
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World Intellectual Property Organization (WIPO) (2005). Selected Case Studies and Best Practices in Tanzania: SMES Benefiting from use of Intellectual property for Business for Small and Medium – Sized Enterprises (SMES). WIPO Worskhop on Intellectual Property for Business for Small and Medium Sized Enterprises, held May 2, 2005. Tanzania.
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Appendix 1
List of Competencies Required by IS
Sector Category Livelihood Activity
Competencies Bearers of Competencies
Generic Entrepreneurship Competencies
All activities Basic sales and marketing
Communication and networking
Decisiveness and dynamism
Risk taking
Innovative and conceptual thinking
Quality Customer Service
Rural and urban men
Rural and urban women
Agri-business Crop production Cultivation
Crop maintenance
Crop harvesting Crop handling and processing
Entrepreneurship
Rural men
Rural Women
Rural Youth
Fishing Swimming and boat roaring
Health and safety
Fish types
Fish handling and processing
Entrepreneurship
Rural men
Rural Youth
Livestock Production
Breeding
Livestock husbandry
Herd management
Environmental Management
Rural men
Milk and Sour Milk Production
Milking cows
Milk processing (fresh and sour milk)
Food hygiene
Entrepreneurship
Rural men
Rural women
Poultry production
Poultry breeding
Poultry flock maintenance
Handling and processing
Food hygiene Entrepreneurship
Rural women
Construction Building Understanding drawings
Building structures
Project Management Entrepreneurship
Rural and urban men
Carpentry Reading technical drawings
Wood working
House fitting
Roof construction
craftsmanship
Entrepreneurship
Rural and urban men
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Plumbing Reading technical drawings
Technical installations
Craftsmanship
Entrepreneurship
Urban men
Urban youth
Education Tutoring Planning lessons
Facilitating learning Assessing learning
effectiveness
Entrepreneurship
Urban men
Estate Management
House leasing Property pricing
Contract management
Entrepreneurship
Urban men
Urban women
Health and Social Services
Healing services Diagnosis
Treatment and review Entrepreneurship
Rural and urban men
Rural and urban women
Massage services Understanding human physiology
Manual dexterity
Entrepreneurship
Rural and urban women
Hospitality and Entertainment
Catering Service Cooking and baking Food processing and
preservation
Food hygiene
Entrepreneurship
Urban youth Urban women
Tour Guiding Knowledge of local heritage and history
Understanding the physical environment
Wilderness survival
Entrepreneurship
Rural youth
Dance Practical knowledge
Creativity
Entrepreneurship
Rural and urban youth
Song Composing
Sound production
Entrepreneurship
Rural and urban youth
Manufacturing` All products Product conceptualisation
Product design
Knowledge of tools and materials
Knowledge of manufacturing process sequence
Quality production techniques
Craftsmanship and creativity
Health and Safety
Entrepreneurship
Rural and urban men
Rural and urban women
Retail All goods Product knowledge Basic sales and marketing
Quality customer service
Rural and urban youth
Women
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Risk taking
Communication and networking
Decisiveness and dynamism
Innovation and conceptual thinking
Cell phone repair Technical electronics repair skills
Health and safety
Entrepreneurship
Urban youth
Cleaning Outdoor and indoor cleaning materials
Handling cleaning chemicals Health and safety
Entrepreneurship
Urban youth
Women
Event Management
Event planning and logistics
Event management
Entrepreneurship
Women
Hair and Beauty Service
Hair and beauty products
Chemical application Creativity
Entrepreneurship
Urban youth
Women
Graphic Design and Drawing
Image conceptualisation
Creative design skills
Computer skills
Entrepreneurship
Urban youth
Landscaping and Gardening
Creative design Plant maintenance
Health and safety
Entrepreneurship
Urban youth
Laundry Service Fabric types
Washing chemicals
Health and safety
Entrepreneurship
Urban youth
Mechanical and Electronic Equipment Repair
Mechanical and electrical systems
Technical repair skills
System maintenance
Entrepreneurship
Urban youth
Shoe Repair Technical repair skills
Craftsmanship Entrepreneurship
Rural and urban man
Tyre repair Technical tyre repair skills
Craftsmanship
Entrepreneurship
Rural and urban youth
Transport Transporting Goods
Transport operations and logistics
Road safety skills Entrepreneurship
Rural poor
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Appendix 2
Botswana Information Sector Skills Study
Questionnaire for Employers and Employees
This questionnaire is intended to obtain information on skills in the informal sector. You have been selected to participate because we believe you have an important contribution
to make in achieving the objectives of this assessment study. Kindly consent to completing the questionnaire for us by answering the questions we will pose to you. All
information you provide shall be reported anonymously together with responses from other participants. Furthermore, you will not be identified by name in this study or in the
dissemination and any publication from this study.
Section 1 Demographic Factors
Location and marital status
Relationship to
owner of business (Tick
0ne)
Tick Gender Age Educational Status Main Activity
Date: -19 Illiterate (Never been)
Employer
Location: Self Male 20-29 Primary Employee
Respondent Code Spouse Female 30-39 Junior secondary Partner Son/daughter 40-49 Senior Secondary Unpaid
worker
Tel(Optional) Parent 50-59 Brigade Single Parent in law
60+ Vocational College Country of Citizenship Married Other relative University
Divorced Other Other (specify)
Widowed
Section 2: Persons Employed and Informal Activity (Business)
Employment Status
Male F Total Location of Premises Tick No fixed premises
Tick
Self employed At home with no special work place
Public transport
vehicle
Bicycle
House to house walking
Permanent
Part time
Temporary
Apprentice
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Outside school/campus Other (specify) Others
At Farm
In undeveloped plot At bus rank
At Construction site At market place
In street or pavement
Outside Shops Others
Section 3: Sources of business
1. What is your main activity? (Business type)
______________________________________
2. What made you choose this business
activity?____________________________________
3. How many years have you being engaged in the
activity/business?____________________
4. What else do you sell/do? (secondary
activity)____________________________________
5. Will you want to rent a space for a business?
_____________________________________
6. If yes to 5, how much will you be willing to pay for the space?
_______________________
7. Do you have a bank account in the name of this business?
___________________________
Section 4: Sources of financing business
Tick Tick Tick
Self Neighbour Bank loan Family/relative
Government Friend Landlord ‘Motshelo’
Non government agency Employer Pawnshop Microfinance lending
Section 5: Accounting system
Accounting practices Tick Accounting practices Tick
No written records Simplified accounting format informal records for personal use Detailed formal accounts
Other, specify
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Section 6: What competencies (knowledge, skills and attitudes) do you possess to
run your business?
Ratings: No skills/Not important=1,Basic/ Somehow important =2, Average/Very
important=3, Advanced/Extremely important =4)
Sector
Category
What Competencies (knowledge,
skills and attitudes) do you need to
run your livelihood activity/business?
Rate your Current
proficiency level
How important is it
for you to get training
on the competencies
you do not have so
you can operate more
productively?
1 2 3 4
1 2 3 4
Sector Categories
1. Wholesale and retail 2. Real estate 3. Manufacturing 4. Agri-business
5. Construction 6. Hotel and
restaurant
7. Transport and
communication
8. Financial
Intermediaries
9. Education 10. Health and
social services
11. Services 12. Other community
based services
Section 7: Sources of Competency Development
How would you want to gain the competencies you need for your business?
Tick as applicable
Through vocational institutions Give reasons for choice of source below
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Through universities
Through non-formal like DOSET
Through distance education like BOCODOL
Learning from those with talents (traditional apprenticeship)
Learning through other means: Specify:
Section 8: Investment in Skills development
Willingness to pay for training
Tick one
that applies
Ability to pay
for training
Tick one that
applies
Reasons for investing in skills development
Tick one that
applies
Willing Able Higher productivity Not willing Not able Employee motivation
Service quality Competitiveness
Section 9: Problems and Prospects
Problems/Difficulties Yes No Mechanism for addressing problem
Yes No
Supply of raw materials Technical training
Lack of customers Training in financial management
Too much competition Training in organizational management
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Financial difficulties Assistance in obtaining supplies Lack of space Access to modern machines
Lack of machines Access to loans
Poor management skills access to large business orders Council bye laws Registration of business
Too little revenue Advertising of new products/services
Other (Specific)…………………………………
…………………………………………………
Other (specify)………………………………...
……………………………………………………
Section 10: Business Income & Expenditure
Particulars In cash In kind (Type) Income
Income from sales
Income from other sources (Specify) TOTAL
Expenditures wages and salaries
Other (Specify) ……………………………………………………. ………………………………………………………………………………
TOTAL
Section 11: Working Conditions
Describe your working conditions
Very good Good Average Bad Very bad
Working hours per day:___________
Rest break per day:______________
Overtime rates:_________________
How often do you receive salary or wages
Daily Weekly Fortnightly Monthly
Did you enter into any formal employment contract?
Yes No
Annual leave entitlement?______________
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Appendix 3: Glossary of terms
1. Activity – refers to an activity that people undertake or engage in order to live or to advance their livelihood.
2. Apprenticeship – refers to system in which someone with expertise or an employer agree to a special contract with another person with a desire to acquire some skills so that they can be trained systematically over time and through practical experience to develop the level of expertise sufficient for them to undertake an activity on their own.
3. Livelihood – refers to the resources, including capabilities that are required to support living or sustenance
4. Informal sector – refers to the informal economy or any activity that people do outside formally registered companies or associations and which are not subject to any regulation or license.
5. Benchmarking – refers to the process of gathering data to understand the causes and effects of applying certain strategies to produce desired outputs, outcomes and impacts in a given context. it enables the learning of lessons and the identification of good practices that could be adapted to achieve similar or better results.
6. Competencies – refers to the knowledge, skills and attitudes or values that people need in order to do something effectively to achieve goals.
7. Competency gap – refers to the difference between the competencies that are required for one to effectively do something and those competencies that the person actually possesses.
8. Decent work – refers to productive work that affords people the enjoyment of freedom, equity, human security and dignity.
9. Knowledge – refers to the totality of what is known by a person or the information and understanding that people possess which enable them to think and do certain things in certain ways.
10. Skills – refers to the ability or expertise that enable a person to behave in certain ways to attain an observable result or to competently undertake an activity requiring the coordination of mental processes and physical activity
11. Indigenous skills – refers to skills or expertise that is unique to particular locality and has passed from generation to generation through oral tradition or traditional apprenticeship.
12. Formal system of education and training – refers to the system of imparting formally packaged knowledge and skills in formal schools or training institutions
13. Sub sector – refers to an economic activity area that exists within a broader sector such as retail trading or manufacturing activities in the informal sector.
14. Sustainable livelihood – refers to ways of living that are sustainable because they give people the means to engage in livelihood activities that are mutually beneficial and prevent them from falling into the poverty trap
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15. Training need – refers to the existence of a proven need for a training intervention to correct a competency deficiency. Training needs are responsive to training action or activities and would not go away, for instance, if financial resources were made available.
16. Training needs analysis – refers to the processes to gauging the existence and extent of a training need. The analysis results in the definition of a performance deficiency that is caused to lack of knowledge, skills and attitude that could be provided through training.
17. Entrepreneurship – refers to the capacity and willingness to start, maintain and continuously improve a productive and gainful business venture whilst innovatively managing associated risks. Being involved in a livelihood activity for subsistence purposes is not an act of entrepreneurship
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Part 2
Informal Sector
Skills Development
Strategy
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INFORMAL SECTOR SKILLS DEVELOPMENT STRATEGY
1. Introduction
The proposed strategy represents a milestone in Botswana’s drive towards human centred
sustainable economic development. It shows a new paradigm that recognises the need for
an integrated approach to deliver skills development for an economy that is cross-sectorally
intertwined. The IS has demonstrated potential to contribute to the diversification of the
economy. During periods of low or negative economic growth and rising unemployment
when people are pushed away from the formal economy, they can find sources of livelihood
in the informal sector. This sector should therefore, stand in readiness to accommodate
these people as well as to graduate those that it had already nurtured into successful
entrepreneurs upwards into the formal sector.
The Informal Sector Skills Development Strategy will deliver a coherent and strategic
approach to ensure Botswana invests in the development of competencies needed to drive
sustainable livelihoods for all those who cannot be absorbed in the formal economy. Skills
development is of great importance for the informal sector to maximise its potential as a
means of poverty reduction and mechanism for diversifying the economy of Botswana.
2. Strategic Change Agenda
Stakeholders should have a shared understanding of the current environment and the new
landscape set forth by the proposed strategy. The strategic changes proposed are indicated
as in the IS Skills Development Strategic Agenda presented below.
Table 28: IS Skills Development Strategic Change Agenda
From… To…
Fragmented Vision Integrated approach
Focus on formal sector Mission Focus on high value skills
Low regard for IS skills Priorities Cross-sectoral Skills
retention and growth
Subsistence Outputs Decent work and
sustainable livelihood
Transactional Core processes Transformational
Supply driven Investments Strategic and targeted
Lack of awareness of
strategy
People Aligned to the strategy
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The other main characteristics of the strategy are the vision, mission and strategy themes as
proposed below.
3. Vision
Skills for decent work in a productive informal economy
4. Mission
The informal sector skills strategy will deliver a coherent and strategic approach to ensure
Botswana invests in the development of skills needed to drive sustainable livelihoods for all
those who cannot be absorbed in the formal economy.
5. Strategic Themes
The strategy is driven by three main themes and the attainment of excellece in these will
lead to the realisation of the Vision and Mission of the Strategy:
1. Retention and growth of high value skills to improve productivity of the
informal sector
2. Focus skill development on vulnerable groups such as women and the youth
3. Build partnership with stakeholders to ensure strong link between skills
demand and supply
6. Strategic Objectives
Strategic Theme 1: Retention and growth of high value skills to improve
productivity
i. Increase opportunities for people to enter into decent work
that ensures sustainable livelihoods
ii. Invest in technical and entrepreneurial competencies in
high value activities
iii. Facilitate formalisation of successful ventures to encourage
access to services associated with insurance, medical aid
schemes and loans
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Strategic Theme 2: Focus skill development on vulnerable groups such as
women and the youth
iv. Enhance the contribution of those that formal employment
is not a viable option
v. Mainstream informal sector skills development into
development programmes and projects to advance youth
and women participation in the economy.
Strategic Theme 3: Build partnership with stakeholders to ensure strong link
between skills demand and supply
vi. Harmonise of national education and training policies and
national HRD strategy
vii. Strengthen ability to forge an integrated response to
changing competency needs of the informal and the formal
economy
viii. Strengthen the delivery of technical education, vocational
and entrepreneurial training
ix. Enhance the capacity of BOTA to facilitate skills
development for the informal sector
x. Build a strong partnership between BOTA and
stakeholders to ensure need-oriented and evidence-based
IS skills development
xi. Integrate IS skills development into national and regional
economic development strategies.
Informal Sector Skills
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7. IS Skills Development Strategy Map
Figure 9: IS Skills Development Strategy Map
Skills for decent work in a productive informal economy
The informal sector skills strategy will deliver a coherent and
strategic approach to ensure Botswana invests in the
development of skills needed to drive sustainable livelihoods
for all those who cannot be absorbed in the formal economy
Retention and
growth of high value
skills
Invest in technical and
entrepreneurial
competencies in high
value activities
Build partnerships with
stakeholders to ensure
strong link between skills
demand and supply
Enhance the
capacity of
BOTA in
facilitating
skills
development
for the IS
Build strong
partnership
between BOTA and
stakeholders to
ensure need-
oriented and
evidence based
ISSD
Harmonise
national
education and
training policies
and national
HRD strategy
Integrate IS
skills
development
into economic
development
Mainstream ISSD
to advance youth
and women
participation in
development
Facilitate
formalisation of
successful
ventures
Enhance contribution
of those that formal
employment is not
option
Increase
opportunities for
people to enter
decent work and
ensure sustainable
livelihoods
Invest in high
value technical
and
entrepreneurial competencies
Strengthen
ability to
respond to
changing
competency
needs
Undertake
further
research to
strengthen
delivery of
TEVET
Them
es
Outp
uts
and O
utc
om
es
C
ore
Pro
cess
es
Inoovatio
n E
nable
rs
Informal Sector Skills
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8. IS Competency Development Scorecard
Theme 1: Retention and growth of skill to improve productivity
Strategic Objective Success
Indicator
Initiative or Intervention
Increase opportunities for
people to enter decent work
that ensures sustainable
livelihoods
% of IS employees
enjoying minimum
conditions
Design TEVET programmes
for IS
Define conditions of work for
each sector
Invest in technical and
entrepreneurial
competencies in high value
activities
Number of people
trained per district
Deliver TEVET training
Introduce targeted
scholarships
Facilitate formalisation of
successful ventures to
encourage access to
services associated with
insurance, medical aid
schemes and loans
Number IS
activities
registered as
companies
Explore co-financing for IS
skills development
Design best practice toolkits
for IS skills development
Audit number of companies
emerging from IS that are
registered per district
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Theme 2: Focus skill development on vulnerable groups such as women and the
youth
Strategic Objective Success Indicator Initiative or Intervention
Enhance the contribution
of those that formal
employment is not a
viable option
% increase in
average income
levels
Engage donor
community to fund
training programmes for
vulnerable groups
Mainstream informal
sector skills development
into programmes and
projects to advance
youth and women
participation in economy.
Number of
project/programmes
with IS skills
development
component
Design and implement
programme for building
women and youth skills
for work
Evaluate level of
participation of women
and the youth in local
projects and
programmes
Introduce information
pamphlets
Informal Sector Skills
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Theme 3: Build partnership with stakeholders to ensure strong link between skills
demand and supply
Strategic Objective Success Indicator Initiative or Intervention
Harmonise of national
education and training
policies and national HRD
strategy
Degree of alignment Study of implications of
policies and strategies on
IS skills development
Strengthen ability to
respond to changing
competency needs by the
informal and formal
economy
% skill demand met
by supply
Introduce training
vouchers for high demand
competencies
Devise traditional and
modern apprenticeship
schemes
Undertake research to
strengthen the delivery of
technical education,
vocational and
entrepreneurial training
Research report
Number of unit
standards
developed
Annual survey of
stakeholder satisfaction
with TEVET for informal
sector
Review vocational training
levy to accommodate
informal sector
Strengthen the role of
BOTA in skills
development for the
informal sector
% positive
perception by
beneficiaries
Training programme for
BOTA Executive and
Senior Managers
Build BOTA coordination
and leadership capacity
% increase in BOTA
capacity
Establish BOTA office for
IS development
Integrate IS skills
development into national
and regional economic
development strategies
% integration into
strategies and
programmes
Training with production
Study on IS skills
development interventions
in national and regional
economic development
strategies
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9. Value Propositions and Financial Implications
Value propositions and Financial Implications of implementing different strategic initiatives
Initiatives or Interventions Value Proposition Estimated Cost
1. Design TEVET programmes for informal sector
Programmes that are specifically
targeted at the IS would ensure that
the sector is not overlooked.
P1 000.000.00
For design of the
learning
programmes
2. Define minimum conditions for decent work for informal sector workers
Without any standards it would be
challenging to reach the goal of
decent work for everyone. The
welfare of all workers needs to be
safeguarded.
P250 000.00
For development
of the conditions
3. Deliver TEVET training for informal sector
Learning opportunities for the
informal sector would provide the
required lever for the sector to
become more productive as well as
competitive.
P26 000 000.00
For actual
delivering
learning
programmes
4. Introduce targeted scholarships for high value informal sector skills
Investing in high value skills would
ensure that their supply matches the
demand. If high value indigenous
skills are not promoted they runt eh
risk of disappearing.
P800 000.00
For designing
the scholarship
administrative
criteria
5. Explore cofinancing for high value IS skills development
Co-financing encourages stakeholder
participation and induces positive
mind-set changes.
P350 000.00
For writing
project
document
6. Design best practice toolkits for high value informal sector skills development
Both private and public institutions
need to be encouraged to cater for
the IS and the toolkits would make it
attractive to do so.
P1 200 000.00
For developing
toolkits
7. Audit number of companies from informal sector that are formally registered per district
Formalisation represents graduation
from the informal to the formal
sector. This reflects both current and
potential future success.
P200 000.00
For underaking
the audit
8. Engage donor community to fund training programmes for
The channeling of donor funds
towards promoting sustainable
livelihoods through skills
P100 000.00
For developing
Informal Sector Skills
September 2012 101 | P a g e
vulnerable groups in informal sector
development is an important
contribution to village, district and
national economic development
project
proposals.
9. Design and implement modularised competency-based programmes for building women and youth skills for work
The situation of women and the
youth in the informal sector is
particularly urgent. Skills are the only
passport to prosperity.
P550 000.00
For design of
programmes
10. Evaluate level of participation of women and the youth in local development projects and programmes
The exclusion of women and youth in
development projects being
undertaken in their areas further
marginalises them. Promoting
inclusion advances their welfare.
P400 000.00
For evaluation
study
11. Introduce information pamphlets on IS skills development programmes
To raise the profile of the IS,
information and publicity is required.
This would also raise the awareness
of target group and induce their
interest.
P500 000.00
For promotional
and publicity
materials
12. Study of implications of policies and strategies on IS skills development
The informal sector could be further
marginalised if public policies and
strategies do not integrate the
sector’s skills development.
Equitable development requires
inclusionary and not exclusionary
approaches.
P500 000.00
For study
13. Introduce training vouchers for high value competencies
Promoting demand-driven skills
development ensures that resources
are channeled only to where they
can be benficially utilised.
Covered under
(3) above
14. Design traditional and modern apprenticeship schemes for the IS
National apprenticeship system
should be reviewed to include the IS
and to cover indigenous skills
P500 00.00
For consultancy
fees
15. Annual survey of stakeholder satisfaction with TEVET programmes for informal sector
There is need to foster evidence-
based management of development
to justify investments in different
interventions.
P350 000.00
For annual
survey
16. Review vocational training levy
The levy can go a long way in
promoting skills development for the
IS.
P100 000.00
For levy review
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17. Establish BOTA office for IS skills development
There is a need to create appropriate
structures to be accountable for
ensuring that skills development for
the informal sector is promoted
P300 000.00
For salary and
office materials
18. Train BOTA Executive and Senior Managers on informal sector skills needs
Top management commitment is
important to ensure successful
change. Integrating informal sector
skills development represents
significant change which needs to be
managed effectively.
P90 000.00
For designing
and delivery of
training
programme
19. Design training with production programme
Visibility of results is important for
influencing adult learners to
recognise the benefits of acquiring
skills. It also fosters hope for positive
personal change.
P500 000.00
For programme
development
20. Commission study on mainstreaming of informal sector skills development interventions in national and regional economic development strategies
Including the informal sector in
village or district level as well as
national level strategies would
promote social and economic
inclusion. This is important for
sustainable poverty eradication.
P500 000.00
For study
TOTAL P34 190 000.00
Informal Sector Skills
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1.0 Strategy Implementation Model
Needs Identification
Needs Analysis
INFORMAL/TRADITONAL
FORMAL
IS Livelihood
Activities
Competencies Required
Competencies Possessed
Strategies for Developing
Competencies
Decide on Specific Learning Interventions
Determine Costs of Implementation
Choose
Apprenticeship CBOs & NGOS
Vocational Brigades
Universities
CBOs &
NGOS Private
Institutions
Design and
Implement
(Informal Providers)
Approaches to
informal learning
Approaches to formal
learning
Design & Implement
(Formal Providers)
Informal Sector Skills
September 2012 104 | P a g e
The strategy implementation model that has been provided above is a simple graphic
representation of what can be done to develop competencies for the informal sector. Specific
decisions have to be made regarding different types of training for particular individuals or
groups of IS operators. As has been indicated, training activities should start with an
assessment of the specific competencies people need to perform well in their informal
enterprises. A number of attributes could be targeted, for example, attitudes towards the
trade, educational levels and prior skills an individual possesses. Additionally, the basic
educational background required to learn new skills should be appraised, for example,
problems of illiteracy such as inability to write or basic numeracy required for the job could
be required where formal training is preferred. Care should be taken to use formal training
when an acceptable level of prior basic education has been established.
It should ne noted that no system of competency development could be successful if the
human capital needing skills were excluded from training due to lack of formal education.
Consequently and as emphasised in the National Human Resource Development Strategy,
there is a need for opportunities to be available for everyone to take part in life-long learning.
The process model could also be used to help implementers to decide on appropriate
providers and approaches that could address the needed skills. This should include
carefully selecting the right training tutors, specialists or apprentices as well as materials to
be used. Competency development needs to add value to human capital and to economic
development. There must be evidence-based returns-of-investment from implementing
competency development interventions.
The need for evaluation is critical to the successful implementation of the ISS Development
Strategy. It should be expected that when the informal sector operators utilise the skills
learned in their operations, there would be measurable changes in the productivity of the
operations and in their living standards.
Finally, there is no panacea for successful skills development, so the model should be
viewed as a template that could be modified to suit the situation of each provider or
implementer. Competency development in the informal sector needs to be tackled carefully
as the sector is diverse in terms of nature of operations, activities and demographic factors
such as age, gender, location, education and competency levels etc. It is necessary to align
skills development activities with the characteristics of each group to ensure prosperity for all
as outlined in the National Vision - Vision 2016.