The Informal Sector in Jinja, Uganda: Implications of Formalization and Regulation

Abstract: This article examines two policies targeting the informal open-air market and fishing sectors in Jinja, Uganda. The informal sector has grown to become a significant source of livelihood for people in growing cities such as Jinja. At the same time, development policies have become increasingly concerned with encouraging formalization as well as the participation of local stakeholders in governance and decision-making. While there has been much debate about the potential impacts of formalizing previously informal, unregulated, unpermitted activities, the implications of these policies for informal vendors and fishers have received less attention. Despite their promises of addressing previous marginalization, the patterns of participation and formalization enforced by these two policies in Uganda have reduced the control of these individuals over their own livelihoods, as well as intensifying contestations of local authority and jurisdiction over resources.