Wednesday, 28 August 2019

Measuring the informal economy - stats and impact: the debate continues

GG Alcock's article in BizNews, his interview with Alec Hogg, my response and his riposte, and the Editor's Desk discussion between Alec and Felicity Duncan, have stimulated a lively discussion on how we measure the informal economy and what its impact is on SA's GDP, unemployment and growth.

BizNews has followed this up with a summary of the comments and points made by readers.

Long may this discussion continue, and hopefully it will filter through to the Treasury and Stats SA where the capacity and expertise lies to do the heavy lifting.

It is interesting that the Treasury's economic growth strategy document released yesterday with an accompanying press statement places great emphasis on the role SMEs will and must play in our growth. Many of its recommendations come straight out of work I did with my colleague Henro Kruger in the 5th term of Parliament between 2014 and 2019 - including his Red Tape Impact Assessment Bill, my Small Enterprises Ombud Service Bill, our focus on late payments and early-stage funding for SMEs, the need to exempt SMEs from regulations and bargaining council extensions and focus on exports, amongst others.

One topic it does not dwell on is the role of the informal economy in the broader economy. I will be sending my comments to the Treasury on this and other matters. Send comments to Rita.Coetzee@treasury.gov.za

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