Informal sector development has been receiving an increased emphasis since 1990’s following social economic reforms in the country. As a result of privatization of public enterprises, coupled with the emphasis on Private sector an engine of growth most of the member of public who are unemployed and those who are joining the labor market from Primary and Secondary schools, Training Colleges, Institutions and Universities having extreme difficulties in finding jobs, apart from agriculture, the other options available for the labor market include medium and small-scale enterprises and the Informal sector.
Informal sector activities in Ifakara include Metal works, food processing, manufacturing of building materials (aggregates, burnt bricks and cement blocks), furniture making, bicycle repair, tailoring and handcrafts, selling of second hand clothes, selling of grains and foodstuff and selling of cooked food. In total the informal sector involve more than5960 People.
The government support to the sector includes such activities’ as training the women and Youth who receive credit facilities from women and Youth Development fund Managed by the Council and other economic groups needing capacity development. There are also different support ranging from capacity development and credit facilities that are provided by different stakeholders; NGOs and financial institutions/intermediaries such as Plan international (CODET), Tunajali (SILCK) and VICOBA.
In its efforts to achieve commitment of improving the Informal sector, the Town Council has set aside 26 Hectares of land at Katindiuka, Viwanjasitini and Kibaoni as processing industrial areas to support small scale Industrial development.
Allocation of business sites for small vendors will be integrated with sectoral activities such as livestock markets and agricultural produce such that available business opportunities are exploited.