Formalisation of the Informal Sector in Zimbabwe, a Key Success Factor to Sustainable Development

The study was meant to establish how the informal sector could be of significance to the socio- economic development of Zimbabwe as well as enhancing sustainable development, given the fact that this sector has become Zimbabwe's largest employer. About 85% are employed by this sector, earning their living together with their families. About $7 billion is alleged to be circulating within the sector but ''outside'' best practice of involving the banking sector as well as contributing towards the fiscus. This sector is largely characterized by stagnation despite lots of potential to develop into commercial SMEs. Its phenomenal growth is attributable to the demise of the formal sector whose big industries have downsized resulting in massive retrenchments. Major findings were; non business registration by the sector operators , non remittance of taxes, non compliance with labour, health and safety laws, lack of business skills, prevalence of unethical conduct, poor technology, inadequate infrastructure and operating under heath hazardous conditions. There is need for key stakeholders such as local authorities and the government to ensure that the players comply with statutory obligations and city by-laws. That would enhance their sustainable development and positive contribution to the economy too. Definition of key terms  Formalisation - legitimising operations of the informal sector by ensuring that they are registered and comply with statutory requirements such as tax remittances.  Informal sector - sector which encompasses jobs which are not recognised as normal income sources and on which taxes are not paid.  Key success factor - one of the most important aspect required to accomplish one or more desirable business outcomes.  Stagnation - No growth of the informal sector as operations are merely intended for mere survival without intending to expand operations.  Sustainable development - growth that should be aimed at reducing poverty and build shared prosperity of today's generation and to continue meeting future generations needs and expectations.