A big part of our economy is untouched by registered lenders: the informal economy. That is an unintended consequence of credit regulations that make it impossible to lend to anyone who can’t produce a payslip and three months’ bank statements. If you’re an informal entrepreneur, you either must fund yourself or turn to illegal and often unscrupulous lenders.

The informal economy could be an important driver of jobs and economic growth. It makes up 30% of the national economy and provides 31% of employment. Given the oft-stated policy intention of stimulating small businesses, the informal sector represents a huge opportunity for development.

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