.What are the main challenges faced by the informal economy in Somalia?

The informal economy in Somalia faces several significant challenges, including:

1 Lack of Regulation: Without formal regulations, businesses operate in a legal gray area, which can lead to exploitation and limited consumer protection.

2 . Access to Finance: Informal businesses often struggle to access credit and financial services, making it difficult for them to grow or invest in improvements.

3 Insecurity: Ongoing conflict and instability can disrupt trade, deter investment, and pose risks to business 

 4. operations.

Limited Market Access: Informal businesses may face barriers in reaching broader markets, limiting their growth potential and profitability.

5  Infrastructure Deficiencies: Poor infrastructure, such as inadequate roads and unreliable utilities, hampers the efficiency of informal enterprises.

6  Taxation Issues: While informal businesses often evade taxes, they also miss out on public services that could support their growth, creating a paradox of dependency and disadvantage.

Competition from Formal

 7. Sector: Formal businesses may have advantages such as better access to resources and legal protections, creating an uneven playing field.

8 Lack of Skills and Training: Many informal workers lack access to training and education, which can limit their productivity and innovation.

9 Economic Vulnerability: Informal workers often lack job security, benefits, and safety nets, making them more vulnerable to economic shocks.

Addressing these challenges is crucial for enhancing the resilience and sustainability of Somalia's informal economy.