Region: Southern Africa Regional Economic Communities (REC): SADC

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• SADC

The size of Botswana’s informal economy is estimated at approximately 26.5% of GDP, representing around $18 billion (PPP) and employing approximately 191,000 people.

Botswana operates a dual legal system combining common law and customary law.

Botswana has ratified 17 ILO Conventions, including:

• 8 Fundamental Conventions
  • Equal Remuneration Convention, 1951 (No. 100)
  • Abolition of Forced Labour Convention, 1957 (No. 105)

• 3 Governance (Priority) Conventions
  • Tripartite Consultation Convention, 1976 (No. 144)

• 6 Technical Conventions

Botswana has been a member of the International Labour Organization (ILO) since 1978 and participates in Decent Work Country Programme initiatives.

Workers’ rights are primarily governed by:

• Employment Act (Cap 47:01)
• Constitutional protections

The framework provides for:

• Regulation of working conditions
• Minimum standards of employment
• Protection of workers’ rights

Social protection systems exist but remain limited in coverage, particularly for informal workers.

Botswana adopts a policy-driven approach to regulating and formalising the informal economy.

Key policies and strategies include:

Vision 2036

• Promotes a vibrant micro and small enterprise sector
• Encourages formalisation of informal businesses
• Aims to create sustainable livelihoods and decent work

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Domesticated Sustainable Development Goals (SDGs)

• Goal 8.3:
  • Promotes entrepreneurship
  • Supports MSME growth
  • Encourages formalisation and access to finance

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COVID-19 Pandemic Relief Fund (2020)

• Provided wage subsidies to affected businesses
• Supported informal workers through income relief
• Included food assistance programmes

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National Informal Sector Recovery Plan (2020)

• Focuses on post-COVID recovery of informal sector
• Key proposals:
  • Establishment of an Informal Sector Agency
  • Expansion of social insurance to informal workers

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Economic Recovery and Transformation Plan (2020)

• Supports economic recovery and structural transformation
• Promotes long-term sustainable growth

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National Development Plan 11

• Focuses on inclusive growth
• Aims at employment creation and poverty reduction

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National Social Protection Framework (2018)

• Expands coverage to informal workers
• Includes:
  • Pension system extension
  • Integration with labour market programmes

Employment (Domestic Employees) Regulations, 1984 (SI No. 156)

• Limits working hours to 240 hours over a 4-week period
• Provides for rest periods and public holidays
• Linked to protections under the Employment Act

Hawking and Street-Vending (Model) Bye-Laws, 2001 Central District Council Bye-Laws (2008) Francistown Hawking and Street Vending Bye-Laws, 1972

• Require licensing and registration
• Provide legal recognition of informal traders
• Establish:
  • Application and renewal procedures
  • Operational rules and restrictions

These bye-laws formalise and regulate street trading while maintaining municipal oversight.

Regulated through general legislation:

• Employment Act (Cap 47:01)
• Environmental Management Act (Cap 65:04)
• Public Health Act (Cap 65:01)

No dedicated legal framework exists for waste reclaimers.

Home working is not governed by a specific statutory framework.

Relevant policy reference:

• National Informal Sector Recovery Plan (2020)

Home-based work remains largely informal and unregulated.

No dedicated legal framework exists.

Relevant policy:

• National Informal Sector Recovery Plan (2020)

Gig work is emerging in:

• Ride-hailing services
• Freelance and digital work

Employment Act (Cap 47:01)

• Provides general labour protections
• Applies to agricultural employment relationships

Mining activities are governed by national mining legislation.

Artisanal and small-scale mining exists but is regulated within broader mining frameworks.

Regulated through general transport and licensing systems.

Relevant policy:

• National Informal Sector Recovery Plan (2020)

Includes both formal and informal transport operators.

Cross-border informal trade operates within a combination of national legislation and regional trade frameworks.

Key regulatory instruments include:

• Employment Act (Cap 47:01)
  • Provides general labour protections applicable to informal workers

• Trade and Consumer Protection Act (Cap 46:09)
  • Regulates commercial conduct and consumer protection
  • Applies to informal and small-scale traders

• Southern African Development Community (SADC) Trade Protocol
  • Facilitates regional trade integration
  • Supports movement of goods across member states

• National Employment Policy (NEP)
  • Recognises the informal economy as a source of employment
  • Promotes inclusive economic participation

These frameworks collectively provide a partial regulatory structure, while a significant portion of cross-border trade continues to operate informally.

• IIAG – Botswana: https://iiag.online/locations/bw.html
• Employment Act (Cap 47:01)
• Trade and Consumer Protection Act (Cap 46:09)
• SADC Trade Protocol
• National Employment Policy
• National Informal Sector Recovery Plan (2020)
• National Social Protection Framework (2018)
• Vision 2036
• ILO Conventions