Browsing: Informal economy

Having an honest job is one of the most respectable activities a person can be consumed with. As long as one is able to pay bills, sustain their livelihoods, while living a dignified life, and of course pay taxes, should the latter be of grave concern, being employed has a positive social stigma associated to it.  

Regardless, the privilege of having a job, especially today is one that many take for granted. Youth, in particular, those entering the workforce have an even tougher road to trek, when finding employment. The matter is worse in the developing world, where jobs are increasingly becoming scarce, even though politicians consistently campaign about job creation as a means to win voters.  

Over the course of the past decade, labor productivity has become a major issue affecting all corners of the globe, but in Africa, the situation stands in peril.  

The International

Africa’s labour pool is uniquely made up of various sections, the most dominant one being the informal sector—encompassing the most human capital, catering for most young-population livelihoods and it is highly un-attended—in terms of proper management and regulations by governments across the region and there is substantial evidence to back this claim. 

According to a 2018 publication by the World Bank Understanding the informal economy in African cities: Recent evidence from Greater Kampala, the informal sector accounts for huge employment in African cities, marking 86 per cent of total employment in sub-Saharan Africa according to the International Labor Organization estimates (ILO). 

“With a pervasive informal sector, city governments have been struggling with how best to respond. On the one hand, a large informal sector often adds to city congestion, through informal vending and transport services, and does not contribute to city revenue,”