Drivers of informal economy in Uganda
nformality in Uganda accounted for 55 percent of the country’s economy. This 4 percent increase in informality partly explains the persistent low tax-to-GDP ratio registered over the years. Additionally, the share of informal employment in total employment increased from 90.7 percent in FY 2016/17 to 92 percent in FY2020/21 (NLFS, 2021).
This policy brief presents the key drivers of informality in Uganda among informal businesses, household activities,