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On 21 August 2024, the SOLIFEM project in Algeria, in collaboration with the Ministry of Vocational Training and Education and the National Office for the Development and Promotion of Continuing Training, organized a workshop at the Office’s headquarters to develop frameworks for Recognition of Prior Learning (RPL) for occupations for workers in the informal economy.

The workshop aimed to analyze, identify, and select the main occupations in the informal economy through a participatory approach, relying on several data sources, including studies conducted within the framework of SOLIFEM project and information provided by partners, with the goal of developing frameworks for Recognition of Prior Learning in the identified occupations.

Mr. Slimane Djoudi, Director General of the National Office for the Development and Promotion of Continuing Training, and Ms. Samia Archela, SOLIFEM Technical Project Officer, opened the workshop. The event was attended by over 25 participants from various ministries and social partners.

By the conclusion of the workshop, a list of key occupations was identified based on a range of data sources. The next step will be to develop frameworks for Recognition of Prior Learning for the skills acquired in these occupations, with the overarching goal of facilitating their transition from the informal to the formal economy.

On 29 May 2024, The ILO regional project (Social Dialogue for Formalization and Employability in the Southern Neighbourhood (SOLIFEM) in Algeria, in collaboration with the General Confederation of Algerian Enterprises (CGEA), held a workshop on “Strategic Plan of the CGEA: Enhancing Employer Involvement in the Governance and Development of Skills Systems.”

The workshop aimed to achieve three key objectives:

1.  Analysis and Presentation of CGEA Strategic Plan: Examine and present in detail the strategic plan of CGEA, focusing on the role of governance in skills systems within this strategy.
2. Sharing of Experiences and Best Practices: Promote sharing of experiences and best practices on the engagement of employer organizations in the governance and development of skills systems.
3. Formulation of Recommendations to Strengthen CGEA Strategic Plan: Identify and discuss strategic approaches to increase the impact of CGEA in the development of skills systems. Use the framework of Recognition of Prior Learning System “Validation of Acquired Skills through Experience” (VCAE) as a case study to explore potential roles CGEA could adopt to enhance the effectiveness and relevance of skills systems.

The workshop gathered over 35 participants, including CGEA members and representatives from other institutions. Mrs. Saida Neghza, President of CGEA, opened the event, with Mr. Farid Hegazy, Senior Specialist for Employer Activities at the Decent Work Team for North Africa in Cairo. Mr. Hegazy delivered a presentation on the role of employers in skill development systems. Furthermore, a detailed presentation of the national VCAE system was given, illustrating a potential framework where CGEA could significantly contribute to its development.

During the workshop, group discussions focused on several critical points, including the involvement of CGEA and its members in skill development systems by evaluating current engagement and identifying areas for improvement. Participants discussed strategies to increase CGEA’s role in skill system development and identified ways CGEA could support the development of the Validation of Acquired Skills through Experience (VCAE) system in Algeria.

The outcomes of these discussions will be compiled into a report, which will be presented to CGEA to provide recommendations to strengthen CGEA’s involvement in the development of skills systems and to enrich its strategic plan on this critical theme.

In cooperation with the General Union of Algerian Workers (UGTA), the SOLIFEM Project launched the first training workshop for the members of the Union about freedom of association in the light of national and international standards. The workshop held from 27 to 29 May 2024. It aimed at strengthening the capacity of the working team of the UGTA Workers in the field of freedom of association, in accordance with national and international standards.

Amar Takdjout, Secretary-General of the General Union of Algerian Workers, opened the first day of the workshop, to which 32 Trade Union leaders participated. They will form the core of a working group specialized in the subject of freedom of association.

The workshop addressed several topics such as the introduction to the Labour and the Trade Unions laws, as well as the sources of the Labour law, its hierarchy and the history of development of labour law in Algeria. A comprehensive presentation was also made on international labour standards, in particular the fundamental conventions.

The various workshops held within the framework of the SOLIFEM project in Algeria aim at contributing to the elaboration of a road map for the role of the General Union of Algerian Workers in the movement of workers from the informal to the formal economy, as well as enabling the Union to contribute effectively to the social dialogue on formalization.

This initiative is an important step to strengthen the capacity of the Union’s members and to provide the necessary tools and knowledge to support the rights of workers and trade unions in Algeria. These efforts are part of a broader framework for developing the country’s labour policies, in line with international standards and ensuring workers’ rights in a fair and formal working environment.

As part of the activities of the regional project “Social Dialogue for Formalization and Employability (SOLIFEM),” co-funded by the European Commission, a workshop was organized in Algeria on December 12 and 13, 2023. The workshop was held in partnership with the Center for Research in Applied Economics for Development (CREAD) to present the results of the diagnosis on the informal economy in Algeria. The workshop also provided an opportunity to present the results of a second study on subcontracting and formalization for private companies in the Construction, Public Works, and Hydraulics (BTPH) sector, conducted in collaboration with the General Confederation of Algerian Enterprises (CGEA).

The proceedings of this workshop were a platform to present the results and key recommendations of these two studies to various partners of the SOLIFEM project in Algeria. A distinguished gathering of more than 40 representatives from diverse government institutions and esteemed social partners took part in a noteworthy assembly. They actively engaged in reviewing, providing insightful comments, and proposing improvements to the presented results and recommendations.

Our partner, CREAD, responsible for conducting the diagnosis, will leverage all the work from this workshop to strengthen and enhance the final report on the diagnosis of the informal economy in Algeria.

We would like to express our gratitude to all our partners for their excellent involvement in this important workshop.

On November 27, 2023, the steering committee of the SOLIFEM project in Algeria held its eighth meeting. The main purpose of this meeting was to review the initial results of the project’s mid-term evaluation. The members of the steering committee were connected remotely with partners from the countries involved in the project – Egypt, Lebanon, and the Occupied Palestinian Territories – as well as with the consultant responsible for this evaluation.

Following this presentation, the committee continued its discussion by assessing the progress of ongoing activities and validating planned actions for the year 2024.

Among the key topics addressed, two activities were discussed and validated: the first involves developing a roadmap for formalizing the informal economy, based on the results of a prior diagnostic. The second activity relates to launching an awareness campaign on the importance of this formalization.

The meeting also served as an opportunity to introduce the new head of the SOLIFEM project, Ms. Samia Archella, who succeeds Mr. Daniel Cork.

Over the span of two days, the regional project “Social Dialogue for Formalization and Employability in the Southern Neighbourhood” (SOLIFEM), co-funded by the European Union, hosted an enlightening training workshop in Algiers on 3 and 4 October 2023. The workshop focused on measuring informality.

The overarching goal of the training was to enhance national capacities for collecting and analyzing data related to the informal labor and the informal sector. This, in turn, would provide a better understanding of the diversity within the informal economy, considering various categories of workers and economic units. Furthermore, it aimed to prepare the tripartite constituents of SOLIFEM project to contribute effectively to the process of recovery and verification of the diagnosis of the informal economy in Algeria.

More than 30 executive officials from various ministries, research centers, and representatives of social partners participated in the workshop. They displayed keen interest and significant engagement during the training sessions. The knowledge and information gained by the participants during the training will assist them in gaining a better understanding of the methodology and the results arising from the diagnosis of the informal economy. This will enable them to provide more enlightened commentary and, as a result, contribute effectively to verifying the accuracy of the diagnosis results.

​The regional project “Social Dialogue for Formalization and Employability in the Southern Neighbourhood” (SOLIFEM), co-funded by the European Union, held a workshop in Algeria on 25 September 2023. The workshop, organized in partnership with the General Confederation of Algerian Enterprises, focused on the role of the private sector and employers’ organizations in the transition to the formal economy.

The workshop was launched in the presence of Ms. Rania Bikhazi, the Director of the country office of Algeria, Libya, Mauritania, Morocco, and Tunisia, Mr. El Mahfoudh Megateli, Secretary General of the General Confederation of Enterprises of Algeria, Mr. Amar Takdjout, Secretary-General of the General Union of Algerian Workers and Mr. Roberto Suárez Santos, Secretary-General of the International Organization of Employers. The workshop witnessed the support and participation of Mr. Farid Hegazy, ILO Senior Specialist for Employers’ Activities in Cairo.

The workshop’s main goal was to help the General Confederation of Algerian Enterprises, representing employers’ organizations, develop and outline a strategy to encourage transitioning informal economic units into the formal economy. It also aimed at identifying capacity-building needs and initial activities for the Confederation.

The workshop was attended by more than 40 members of the federation, who actively contributed to the group discussions to enrich their strategy to contribute to the transition to the formal economy.

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The ILO regional project “Social Dialogue for Formalization and Employability in the Southern Neighbourhood” (SOLIFEM), co-funded by the European Union, organized a workshop to promote social dialogue as a tool for moving towards a formal economy to improve employment opportunities in the agricultural and food industries sectors.

The workshop was held in cooperation with the Pro Agro Youth project, and the Ministry of Agriculture, Rural Development, and Fisheries, on 16 and 17 May 2023. Its aim was to identify obstacles facing the formalization of economic units and workers in the agricultural sector and value chains within the food industry. The workshop showcased opportunities for strengthening the formalization process

The workshop was attended by all three stakeholders in the agricultural sector, with the participation from representatives of the Government, employers’ organizations, and workers’ organizations, as well as the participation of research centers on the agricultural sector and experts of the International Bureau of Labour.

At the conclusion of the workshop, participants collaboratively formulated a range of pivotal recommendations. These recommendations are positioned to play a crucial role in driving the transition from the informal to the formal economy within Algeria’s agricultural sector.

In Algeria, the Government officially endorsed the project through a letter in September 2021. Since then, meetings with ILO tripartite constituents, government ministries, and other project partners took place, in order to introduce the SOLIFEM project.

The ILO regional project “Social Dialogue for Formalization and Employability in the Southern Neighbourhood” (SOLIFEM), co-funded by the European Union (EU), held a workshop on May 27, 2024, in collaboration with the Federation of Egyptian Industries (FEI). The workshop presented the main findings of the guidance note “Leveraging sustainability pathways to accelerate formalization and the role of companies in mitigating informality.”

The guidance note came out as a result of a series of workshops that the project organized in 2023 to raise awareness among formal sector entities in selected industries. These workshops highlighted the impact of the informality on the economy, productivity, and working conditions, and addressed the challenges of the transition to the formal economy. They emphasized on how businesses can facilitate this transition through legal compliance and corporate social responsibility.

The recent workshop aimed to present the guidance note’s findings and enhance private sector involvement in this transition. It included expert presentations and interactive discussions, emphasizing sustainability and economic development.

The guidance note explores how private sector companies can play a pivotal role in the transition to the formal economy by formalizing workers and improving working conditions within their enterprise, as well as transitioning informal economic units and their workers in their supply chains to the formal sector.

Representatives from formal companies, with a focus on human resources managers, administrative managers, and procurement officers, alongside professionals from FEI and ILO experts participated in the workshop. They engaged in discussion on the crucial role of the private sector in driving the transition to the formal economy.

It concluded with the unveiling of the “Recognizing Sustainable Champions for Formalization Practices in Egypt” initiative to inspire companies to incorporate formalization and sustainability in their core operations to foster a more sustainable and formal business environment in Egypt.

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In collaboration with the Federation of Egyptian Industries, the ILO regional project “Social Dialogue for Formalization and Employability in the Southern Neighbourhood (SOLIFEM)”, co-funded by the European Union (EU), held a training of trainers (TOT) workshop from 21 to 24 April in Cairo. The workshop focused on the promotion of enterprise and job formalization through the ILO training module “Formalize Your Business” (FYB).

Following the validation of the training manual in a workshop held at November 2023, the final version was prepared. This comprehensive manual addresses the specific needs and challenges of SMEs in Egypt. The validation process involved feedback from diverse stakeholders, ensuring the manual is practical and relevant.

The FYB training module is part of an integrated strategy to facilitate the transition of informal economic units to the formal economy by enhancing the capacity of small and medium enterprises (SMEs) and empowering them to comply with national regulations and transition to the formal economy.

The TOT program’s primary goal was to create a pool of national trainers capable of delivering the FYB training to the informal economic units in Egypt and guiding them through the formalization process.

With the completion of the FYB training of trainers, a national team of 20 enthusiastic trainers is ready to embark on their journey of enabling informal economic units to transition to a formal economy all over Egypt.

In a significant step towards promoting enterprises formalization and supporting small and medium-sized enterprises (SMEs) in Egypt, the Federation of Egyptian Industries (FEI) and the ILO’s SOLIFEM project, co-funded by the European Union (EU), conducted a workshop in Cairo on November 14, 2023, to address SMEs registration procedures in Egypt.

The workshop aimed to present gathered data on registration and compliance procedures for SMEs in Egypt, pinpoint any information gaps, errors, or inconsistencies, and involve pertinent stakeholders for subsequent support. The overarching aim was to rectify these information gaps and create a training manual that guides the formalization of enterprises and jobs in Egypt, adapting the ILO “Formalize Your Business” training tool.

A diverse group of over 50 participants actively engaged in the workshop. This included individuals from entities interviewed in the information collection phase, other national stakeholders, entrepreneurship development experts, and representatives from both formal and informal businesses

During the workshop, a significant highlight was shed on the “Formalize Your Business” tool and how it’s implemented in different countries. The tool is designed to enhance the capabilities of SMEs through Employers Organizations. Divided into two parts, the manual provides a comprehensive overview of the formalization process. The first part delves into generalities surrounding the topic, emphasizing its importance, while the second part outlines specific procedures for registering an economic unit in Egypt and ensuring compliance with national requirements.

Participants gained valuable insights around the effective utilization of the tool, emphasizing its role in guiding enterprises toward Formalization. Top of FormThe workshop was highly interactive; participants were grouped, each focusing on a specific section of the manual. These diverse groups shared their experiences and provided valuable commentary on the gathered information, in addition to a group of representatives from both formal and informal enterprises who brought their unique perspectives, engaged in a meaningful dialogue and offered crucial feedback on the manual.

Through the engagement of various stakeholders, the workshop encouraged dynamic discussions, laying the groundwork for a training manual aimed at guiding SMEs towards formalization. The manual is scheduled for release following verification and the presentation of results to pertinent authorities.

The SOLIFEM project in Egypt crowned its trade unions’ capacity-building program, with a “Training of Trainers” program for workers’ educators. It aimed to build the capacity of trade unions’ members to support the transition to the formal economy. The program targeted 20 workers’ educators from different sectors including transportation, textiles, food industries, agriculture, small farmers, and fisheries workers.

The training program consisted of two levels. During the basic level, which took place from 30 July to 3 August 2023, participants reviewed the basic information on the ILO approach on the transition from the informal to the formal economy. They also discussed the basic concepts of informal employment, its causes and outcomes, and the role of trade unions in facilitating the transition to the formal economy and in social dialogue. Participants also acquired skills in designing and delivering training sessions.

After completing the basic level, each participant conducted a training session for workers they represent on one of the topics covered. The advanced level, held from 20 to 24 August 2023, delved deeper into refining trainees’ practical skills in preparing session plans, materials, and activities, along with an exploration of trainer and trainee types, with a review of the theoretical part.

Both program levels embraced a participatory approach, using in-depth discussions, brainstorming sessions, case studies, and role-playing, as well as training games to break the ice and engage the trainees in line with the program’s objectives. Participants were able to practice presenting and delivering content during the training.

Upon completing the advanced level, 17 certified trainers, are expected to lead the implementation of the trade union outreach plan to informal workers and to support their transition to formal jobs.

In collaboration with the Federation of Egyptian Industries, SOLIFEM organized three rounds of awareness-raising workshops for companies on the role of private sector companies in facilitating the transition to a formal economy in Cairo, Alexandria, and Damietta during June and July 2023.

These workshops aimed to enhance the awareness among private sector companies operating in specific sectors (food industries, engineering industries, and ready-made garments) regarding the repercussions of informality on the economy, corporate productivity, and working conditions. Additionally, the workshops focused on addressing the obstacles associated with the transition to the formal economy and outlined how companies can make valuable contributions through compliance with regulations and the implementation of corporate social responsibility initiatives.

The workshops had more than 70 representatives from more than 50 medium/large companies situated in Greater Cairo, Alexandria, Damietta, and the cities along the Canal.

Through the course of the three workshops, participants engaged in comprehensive discussions covering a range of subjects linked to informality. These included the importance of the transition to a formal economy from the perspectives of governments, employers, and workers. Moreover, the participants examined ILO Recommendation No. 204 on the transition from the informal to the formal economy.

Participants also explored topics like corporate social responsibility, the pivotal role of the private sector in facilitating the transition, potential incentives for employers and companies, and the advantages of social protection.

By the end of each of the three workshops, participants put forth recommendations to enhance the role of private sector enterprises in facilitating the transition to the formal economy. These suggestions included the establishment of comprehensive insurance coverage for both workers and employers, alongside tax and insurance incentives to encourage a seamless transition into formal economic structures. Additionally, there was a strong emphasis on preventing the multiplication of official papers for formalization and unifying the requirements; providing factories with a grace period to align conditions, and supporting suppliers in harmonizing their status. Stimulus policies and activities were also proposed to facilitate this journey.

Furthermore, participants underscored the significance of empowering workers by increasing wages in line with minimum wages requirements, fostering awareness of their rights and the advantages of formalization, and highlighting the importance of social insurance. A new guidance note has emerged from three workshops for formal enterprises on the vital role of the private sector in facilitating the transition to the formal economy. Finally, there was a call for sustained social dialogues between employers and workers as a cornerstone for progress on the subject.

The ILO project “Social Dialogue for Formalization and Employability in the Southern Neighbourhood (SOLIFEM)”, co-funded by the European Union (EU), organized a training workshop for trade unions in Alexandria on 19 and 20 June 2023, on the pivotal role of social dialogue in facilitating the transition to the formal economy.

The workshop was designed to enhance the capacities and knowledge of select trade unions, emphasizing the significance of social dialogue as an integral component of decent work and the collective bargaining process. The workshop was attended by 20 trade unions leaders and representatives from sectors such as ground transport, fishing, small farmers and agriculture, irrigation, and textile.

As part of SOLIFEM’s comprehensive capacity-building program, the workshop aimed to strengthen the knowledge of trade unions on the social dialogue and its instrumental role in the transition towards the formal economy.

Over the course of two days, participants delved into a range of topics related to social dialogue. These included the ILO’s role in fostering social dialogue, and promoting the Fundamental Principles and Rights at Work, as well as pertinent national legislation, norms, and mechanisms for social dialogue. The workshop also shed light on the crucial role of social dialogue in promoting the transition to the formal economy, the role of trade unions in social dialogue and collective bargaining, and international best practices in social dialogue, as outlined by ILO Recommendation No. 204.

The workshop adopted an engaging and interactive approach, ensuring participants actively took part in role-playing discussions. They explored the challenges faced by informal employment and learned how to effectively engage in tripartite and bipartite social dialogue. Together, the participants explored strategies to develop participatory solutions for the problems encountered by workers and employers during the transition to the formal economy.

The ILO regional project, “Social Dialogue for Regularity and Employability in the Southern Neighborhood” (SOLIFEM), co-funded by the European Union, conducted a workshop in Cairo from 6 to 8 June 2023. The purpose of the workshop was to allow worker representatives to discuss extending social protection to informal workers.

The primary objective of the workshop was to enhance the knowledge of targeted trade unions regarding the significance of social protection, its connection with Decent Work and Formalization. It discussed the relevant international instruments from the ILO including ILO Convention 102, ILO Social Protection Floors Recommendation (202), and ILO Recommendation No. (204) on the transition from the informal to the formal economy, the national legislation related to social protection, and the role of trade unions in expanding social protection for workers in the informal economy.

Over 30 worker representatives from the targeted sectors such as transportation, textiles, agrifood, agriculture, small farmers, and fishing workers participated in the workshop. They engaged in discussions on Social Protection programs and benefits, barriers hindering the extension of social protection to the informal economy, the ILO’s two-track approach, and the role of trade unions in this process.

The workshop offered a valuable platform for the exchange of knowledge and collaboration among workers’ representatives. The participants put forward numerous propositions aimed at expanding social protection for informal workers. They emphasized the necessity of empowering trade unions to actively participate in the formulation of laws and regulations concerning labour matters. Furthermore, they highlighted the significance of media outreach, specifically in raising workers’ awareness about the pivotal role of trade unions in protecting their rights and advocating for their needs. Additionally, they called for launching educational courses at various trade union centers.

The participants emphasized the necessity of establishing a comprehensive database of informal employment across various sectors, which should be compiled through local entities. They placed significant importance on making amendments to the Social Security and Pensions Act No. 148 of 2019, with the specific objective of incorporating marginalized groups. Furthermore, they highlighted the imperative of expanding the social protection framework to encompass all workers, encompassing provisions for adequate pension schemes and comprehensive health insurance. They called for expediting the implementation of a nationwide comprehensive health insurance system to cover the entire country, while also advocating for the provision of benefits to address disabilities, unemployment, old age, and death. Additionally, they suggested that enrollment in social insurance programs should be contingent upon obtaining national identification cards.

With the conclusion of the workshop, the participants initiated the process of developing a joint position paper on the topic of social protection available to informal workers in Egypt. This paper will serve as a comprehensive document outlining their collective views, recommendations, and proposed actions to address the pressing issues faced by informal workers in the country.

The ILO regional project “Social Dialogue for Formalization and Employability in the Southern Neighbourhood” (SOLIFEM), co-funded by the European Union, organized two workshops in Cairo from 26 to 30 March 2023. The primary objective of these workshops was to enhance capacity and exchange knowledge regarding the ILO methodology for formalization and the role of trade unions in enabling the transition to a formal economy.

The workshops aimed to raise participants’ awareness on the concept of formalization and highlight the importance of transitioning to a formal economy. Participants were also familiarized with the international framework on the transition from the informal to the formal economy, as outlined in ILO Recommendation 204, issued in 2015. Furthermore, the role of trade unions in facilitating this transition as a means to achieve formalization was emphasized.

Approximately 40 individuals participated in the workshops and engaged in discussions regarding the challenges and opportunities encountered by workers, employers, and the government when transitioning from the informal to the formal economy. Participants delved into topics such as the ILO’s Fundamental Principles and Rights at Work, the national context of Egypt’s informal economy, relevant legislation, obstacles to the transition process, the legal framework governing trade union organizations, as well as the components and preparation of an action plan at the union level to shift from the informal to the formal economy.

At the conclusion of the two workshops, participants put forth several recommendations to facilitate the transition from the informal to the formal economy. They emphasized the significance of dialogue between employers and workers to integrate the latter into formal employment. Additionally, they highlighted the need to include informal employment within the national insurance system. The establishment of a standing committee was proposed to streamline the transition process from the informal to the formal economy.

Regarding the role of trade unions in the transition, participants advocated for the expansion of the trade union base to encompass wider areas and larger governorates, thereby forming a more extensive trade union level. They stressed the importance of raising employers’ awareness regarding the benefits and necessity of transitioning to the formal economy. Furthermore, they suggested offering incentives to employers to facilitate this transition. It was also proposed that stakeholders should be invited to engage in negotiations to develop a joint action plan, ensuring a seamless transition to a formal economy without imposing costs on workers.

From 19 to 21 March 2023, the ILO regional project “Social Dialogue for Formalization and Employability in the Southern Neighborhood” (SOLIFEM) co-funded by the European Union, hosted a workshop in Cairo, to strengthen capacity and exchange experiences on the ILO methodology for formalization and the role of employers in facilitating the transition to the formal economy.

Over three days, 20 participants gathered to discuss the ILO approach to formalization aligned with ILO Recommendation No. 204 on the transition from the informal to the formal economy. The discussions focused on various aspects of the informal economy, including the challenges faced by employers, workers, and the national economy as a whole. The workshop explored the international framework outlined in Recommendation 204 for transitioning from the informal to the formal economy. Additionally, participants delved into Egypt’s specific context regarding the informal economy, identified obstacles hindering the transition to the formal economy in Egypt, and examined the formalization methodology proposed by the ILO for informal workers and enterprises.

The workshop also featured a presentation on the ILO’s study on the opportunities and challenges associated with formalizing small and medium-sized enterprises (SMEs) in Egypt.

Participants examined the role of employers’ organizations in facilitating this transition and put forth several recommendations to achieve it. They highlighted the importance of awareness-raising campaigns targeting workers and organizations to showcase the benefits and opportunities associated with formalization. They also advocated for the streamlining of complex procedures involved in transitioning to the formal economy, aiming to reduce barriers.

Furthermore, participants stressed the significance of incentivizing participation in the formal economy by offering a comprehensive package of benefits. Lastly, participants recognized the need to strengthen institutional capabilities among industrial chambers, with a focus on leveraging digital transformation and fostering networking opportunities to support and guide employers in their formalization efforts.

The workshop concluded with a discussion and advice on designing and implementing project activities with the Federation of Egyptian Industries.

The regional ILO project (Social Dialogue for Formalization and Employability in the Southern Neighbourhood (SOLIFEM), co-funded by the European Union, organized a one-day knowledge exchange workshop for independent national experts on the informal economy in Egypt, on 15 February2023 to identify the current pressing challenges in the ecosystem including regulations, existing practices, past projects, and capacity building needs.

The workshop also aimed at enabling participants to exchange knowledge and experiences on informality in Egypt, identifying employment and enterprise formalization barriers and challenges, analyze the guidelines provided by the ILO Recommendation 204 on the transition from the informal to the formal economy, propose actions for the project implementation, and form a pool of national experts familiar with the ILO formalization approach as described in the said Recommendation 204.

More than 23 participants, with 19 individuals representing a diverse range of backgrounds and expertise, attended the workshop. These national independent experts brought valuable experience in fields such as enterprise development and formalization, legal affairs, research, capacity building, private sector development, social protection, skills development, and workers’ rights, among others.

After engaging in intensive discussions and sharing their diverse perspectives, the attendees successfully formulated a set of comprehensive recommendations that spanned across three axes; women and youth skills development, policies, and institutional development.

In order to enhance capacity building, with a particular focus on women and youth skills, participants recommended embarking on new partnerships, and building on existing ones with organizations to enrich social dialogue and build the capacity of youth and women. They also proposed the establishment of centers to assess informal labour skills and support their education as per the needs of specific industries or sectors and launching services to provide technical, logistical, and legal support to institutions interested in initiating the formalization process.

Regarding policies, participants recommended creating a digital system or service that can shorten and facilitate the registration process online, offering an incentive package for enterprises to consider formalization, re-examining and evaluating potential solutions and revisions to regulations and laws in order to address uncertainties and loopholes that may impede the formalization of businesses.

In the context of institutional development, various strategies may be implemented to promote formalization. One approach is to explore the role of cooperatives and highlight successful practices, emphasizing how these models contribute to formalization. Additionally, it is crucial to plan activities that enhance the capacity of cooperatives, Furthermore, considering membership-based organizations like trade-unions, cooperatives, and associations as initial steps for both employment and enterprise formalization can be beneficial. Lastly, facilitating enterprise registrations plays a crucial role in streamlining the formalization process for informal economic units.