| Overview : In support of its development mandate, UNDP Botswana in 2020 partnered with the government of Botswana to develop and implement the informal sector recovery plan (ISRP) as one of the three recovery plans to assist the country to build back better after the COVID-19 pandemic. The project aims to capacitate the informal economy in particular youth and women within the informal sector and close the gaps identified through assessing the informal economy and through stakeholder consultations. Objectives of the ISRP • Develop the capacity of the informal economy to improve their business skills and give them an opportunity to grow their businesses • Capacity development of the informal economy associations • Advocate for policy changes to ensure the informal economy is included and recognised • Create through collaboration with different stakeholder access to markets for the informal economy • Connect the informal economy to the private/formal sector to facilitate skills transfer • To increase or strengthen the informal economy’s awareness of capacity development programs 2. PROBLEM STATEMENT During the implementation of the ISRP, several findings of the diagnostic review across the collaborative efforts of the informal economy associations, the implementing partners and UNDP, revealed the following challenges faced by the informal economy which hinders their optimum performance: • Lack of utilisation of digital solutions • Inadequate cash flow streams to sustain daily business operations • Inability to access credit facilities, • Lack of financial literacy • Poor business management skills fundamental for efficient business operations, • Market access challenges. • High prices of locally produced goods and services • Poor quality of goods/services. • Lack of entrepreneurial skills to effectively identify business opportunities • Lack of security of tenure as most operate from open spaces • Lack of organisation by the informal economy itself • Lack of capacity by the associations, and in turn are not able to serve their members fully • Limited access to infrastructure; internet, knowledge resources It is against this backdrop that there is a need to carry out training on the two main areas which were predominantly common across the different informal economy associations and informal economy location areas being: • Lack of financial literacy • The need for skills development (business management, networking, digital solutions etc.) Addressing these two major capacity development needs will have a trickle effect on improving the skills of the informal economy and facilitate their efficiency. | 
