This study examines the dynamics of the informal sector in urban Uganda within the legal framework. The study employs qualitative research methods, including interviews with stakeholders from various sectors, legal experts, and government officials. Comparative case studies are used to analyse laws and policies affecting the informal economy. A notable finding is the significant role played by local ordinances in regulating small-scale businesses, often operating outside formal legal structures but critical for their survival. The analysis reveals a complex interplay between formal law and informal sector practices, with some laws providing essential support while others create barriers to growth. Policy recommendations include the need for clearer legal frameworks that accommodate both formal and informal sectors and encourage more inclusive business environments.
Kakwunyi et al. (2002) studied this question.