Egypt prepares to issue law merging informal economy with legal system

Egypt is preparing to issue a law to merge the informal economy with the legitimate economic system in the coming period, Deputy Minister of Planning, Follow-up and Administrative Reform of Planning Ahmed Kamali said Tuesday.

Kamali added in a statement that the integration of the informal economy into the formal system of the economy helps combat poverty, which contributes significantly to the acceleration of growth.

He clarified that Egypt has two types of economy: official and informal, noting that the proportion of workers in the informal economy represents 50 percent and that this type of economy records 40 percent of GDP.

Vice President of the Federation of Industries Tarek Tawfik said in April that the informal sector represents more than 50 percent of Egypt's economy.

As per the poverty rate, Kamali stated that it recorded 32.5 percent during 2017/2018, compared to 27.8 percent in prior years.