Innovators are shaping Africa’s ‘informal economy’
The opportunity to develop solutions for Africa’s informal sector remains large and certain entrepreneurs are thriving by serving this market.
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A somewhat common feature of developing market economies, particularly in Latin America and sub-Saharan Africa, is informality.
Africa’s Informal Sector
From street vendors to house-help to traders in open-air markets to subsistence farmers & fishermen, personal drivers, roadside barbers, small-scale manufacturers, and more, the informal economy accounts for over 70% of total employment in sub-Saharan Africa. Moreover, the sector is said to comprise ~38% of the region’s GDP, more than double the figure for OECD countries.
Like the formal economy in high-income OECD countries and elsewhere, the informal economy includes both self- and wage employment. However, the informal sector is …