The high cost of digital tools such as basic phones and mobile data plans are often out of their reach, which limits the workforce in the informal economy’s ability to adopt new technology.
Therefore, the informal sector workers end up sticking to manual processes instead of incorporating technology into their operations.
The main contributing factors for low technology adoption were cost, lack of electricity and some informal sector entities indicated they did not require to use ICT in their businesses; and the latter could apply to open-air businesses.
For the wholesale and retail sector which forms the majority of the informal sector, they gave the following reasons; lack of knowledge (78.13 per cent), not needed (82.22 per cent), no electricity (71.23 per cent), not accessible (81.40 per cent), too costly (83.06 per cent) and their main reason for not using is the cost, which is a factor hindering adoption to digitalization.
In agriculture, electricity is the main reason for not using ICT.
Electricity is an enabler of digitalization, and it is necessary to drive adoption in the sector.
