Africa informal economy employs nearly 83%, ILO says

Africa's informal economy employs nearly 83 percent of workers in recent years, according to the International Labour Organization, making unregulated work both a lifeline for millions and a challenge for governments seeking tax revenue and formal jobs.

Informal work ranges from street vending and motorcycle taxis to garages, small eateries, cleaning, security and restaurant jobs without contracts or social security coverage. In Ivory Coast, Senegal, Mali and Nigeria, the informal sector accounts for more than 90 percent of the active population, the ILO says.

The International Monetary Fund estimates the informal sector accounts for up to 65 percent of Africa's gross domestic product. The UN Development Programme said in a July report that many African countries' development is shaped by the weight of the informal sector, a lack of firms able to grow and too few opportunities for decent jobs.

Workers interviewed by AFP in Abuja, Abidjan and Dakar said informal trade gave them a way to earn money despite poverty, unemployment, limited resources and administrative barriers to formal business.

In Abidjan, mechanic Yacouba Sylla said he had moved his informal garage several times because of demolition operations, but lacked the money or state support to run a fully compliant workshop. In Dakar, street eatery operator Lobe Sarr said selling in the street was difficult but allowed her to cover daily needs.

Governments have responded with measures including demolitions, seizure of merchandise, training programmes and moves to put services online. Yaya Doumbia, first deputy mayor of Yopougon in Abidjan, said occupied pavements and public spaces were a major challenge for local authorities.

Economist Guillaume Liby said many governments were focusing too much on coercion and not enough on tax burdens, administrative hurdles, financing and infrastructure for small entrepreneurs.

Ivory Coast has made reducing the informal sector part of a national development plan unveiled in July, including a status for small entrepreneurs. Benin says policies based on building modern markets and reorganising commercial areas helped cut informal jobs from 97 percent to 85 percent, while raising tax revenue and improving working conditions.