Afridigest

Share this post

Innovators are shaping Africa’s ‘informal economy’

afridigest.substack.com

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.

Emeka Ajene
Aug 16, 2020
5
Share this post

Innovators are shaping Africa’s ‘informal economy’

afridigest.substack.com
Afridigest provides ideas & analysis for startup founders, operators, and investors across Africa and beyond. 

If you’re new, welcome 🙌 — you’ll generally receive 2 weekly Afridigest emails: an original essay 
(on Saturdays) and the weekly digest (every Monday). For past essays and digests, visit the archive.
Spreading The Greens flower seller plants indian gif aftereffects character animation illustration 2d animation

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 …

Keep reading with a 7-day free trial

Subscribe to Afridigest to keep reading this post and get 7 days of free access to the full post archives.

Already a paid subscriber? Sign in
© 2023 Emeka Ajene
Privacy ∙ Terms ∙ Collection notice
Start WritingGet the app
Substack is the home for great writing