Summary Report, West African Employers Association/Employers’ National Council of Guinea/BizClim/BKP, May 2012
This study was initiated by the Federation of West African Employers Associations (FOPAO / FWAEA), in partnership with the Employers’ National Council of Guinea (CNPG / ENCG), and prepared with the support of the ACP Business Climate Facility (BizClim), a programme of the ACP Secretariat funded by the European Union (EU) through the 10th European Development Fund (EDF). The objective of the study is "the Elaboration of an Action Plan for the Implementation of Measures and Actions in Favour of the Reduction of the Informal Economy in Guinea"
With a relative importance varying from 20% of Gross Domestic Product (GDP) in advanced economies to 70% in developing countries, the informal sector is a shelter for the population: survival shelter for the poorest, shelter against taxation for the richest. This disparity in the actors' motivations to confine themselves to the informal sector makes it not only difficult to define the sector, but also to measure its relative size, since it is, by definition, hidden/underground.
Based on the analysis, an action plan is developed. It is based on two strategic components: The first one, referring to the informal sector framework,
proposes initiatives to establish a political, fiscal, legal, institutional, financial and organisational framework that will encourage the emergence of a structured private sector through a progressive formalisation of the informal sector. The second component, which proposes sector initiatives for the informal economy, will allow its operators to transform their unorganized structures into modern ones.