Across giant African cities, Casablanca, Cairo, Nairobi, Johannesburg, and Lagos, you find busy streets filled with young people. Young people who have moved to surrounding rural areas in search of better opportunities and work. Africa's youths have long been the driving force behind the continent's economic growth and development. In bustling metropolises like Casablanca, Cairo, Nairobi, Johannesburg, and Lagos, these vibrant cities are teeming with aspiring individuals, many of whom are informal workers.     

Informal workers represent a significant portion of the workforce in Sub-Saharan Africa, accounting for 83% of employment in Africa and 85% in Sub-Saharan Africa. They engage in a wide range of activities, including street vending, domestic work, carpentry, hairdressing, and various other forms of small-scale entrepreneurship. While they contribute immensely to the region's economy, informal workers often face numerous challenges that hinder their progress and potential. The informal economy in Sub-Saharan Africa remains among the largest in the world, although this share has been very gradually declining. The pivotal role of the urban informal sector is expected to continue in the foreseeable future in light of Africa’s growing population. However, the (urban) formal wage sector is not creating sufficient jobs to absorb all new entrants and those migrating from rural to urban areas. 

One of the most pressing issues for informal workers is the unstable nature of their income. Unlike formal employment, which offers regular paychecks and benefits, informal workers often experience irregular earnings. Their income fluctuates depending on market conditions, customer demand, and external factors beyond their control. This instability makes it challenging to plan their finances, support their families, and invest in their future.      

Furthermore, the lack of job security adds to the vulnerability of informal workers. They are often subjected to exploitative working conditions, long hours, and a lack of legal protections. Without formal employment contracts or social safety nets, informal workers face the constant risk of losing their livelihoods overnight, leaving them without any means to support themselves and their families

Another significant challenge faced by informal workers is their limited access to benefits. Unlike formal workers who often receive health insurance, retirement plans, and other employment benefits, informal workers are largely excluded from such social protections. This lack of access exacerbates their vulnerability and exposes them to significant risks, especially during emergencies or health crises. The extension of formal social protection coverage to informal workers can reduce poverty and sustain livelihood development, economic growth and employability support, and human capital development 

 According to the International Labor Organization, the informal sector claims almost 90 percent of the economy’s GDP in sub-Saharan Africa, yet financial and economic exclusion are prevalent issues among informal workers in Sub-Saharan Africa. Many of them operate in cash-based economies, with limited access to banking services, credit, and formal financial institutions. This exclusion makes it difficult for them to save, invest, or access affordable financial products and services, hindering their ability to grow their businesses and improve their economic well-being.

At the core of our vision and mission lies the commitment to address challenges and uplift informal workers. We aim to empower 10 million informal workers in Sub-Saharan Africa by 2030 through our comprehensive digital staffing agency. Our aim is simple yet powerful: to offer them stable jobs, establish verifiable career identities, promote financial inclusion, and ensure social protection.

Harnessing the power of technology, our digital staffing agency acts as a bridge, connecting informal workers with dignified and secure work opportunities. Through our platform, they gain access to a wide range of job listings, secure fair wages, and cultivate a reputable professional image. Moreover, we plan to forge partnerships with financial institutions to foster financial inclusion, extending banking services, microloans, and tailored financial products to our network of informal workers.

Furthermore, we actively collaborate with governments, N.G.O.s, and other stakeholders to advocate for comprehensive country-specific policies that recognize and safeguard the rights of informal workers. We also partner with foundations that have research-focused mandates to help push policy. By generating awareness and facilitating dialogue, we aim to drive systemic changes that establish a more equitable and supportive environment for informal workers throughout Sub-Saharan Africa.

The challenges informal workers face in Sub-Saharan Africa are profound and multifaceted, from unstable income and job insecurity to limited access to benefits and financial exclusion. However, our unwavering commitment as a digital staffing agency is to empower 10 million informal workers by 2030, granting them stable jobs, verifiable career identities, economic inclusion, and social protection. Together, we can shape a future where informal workers are esteemed, respected, and equipped with the necessary tools to construct better lives for themselves and their communities.


### References:

1. https://www.africanews.com/2023/04/04/top-10-richest-cities-in-africa/
2. https://www.worldatlas.com/cities/10-largest-cities-in-africa.html
3. https://www.un.org/ohrlls/news/young-people%E2%80%99s-potential-key-africa%E2%80%99s-sustainable-development 
4. https://www.ilo.org/africa/events-and-meetings/WCMS_842674/lang--en/index.htm
5. https://www.imf.org/en/Publications/WP/Issues/2017/07/10/The-Informal-Economy-in-Sub-Saharan-Africa-Size-and-Determinants-45017
6. https://blogs.worldbank.org/africacan/supporting-africas-urban-informal-sector-coordinated-policies-social-protection-core
7. https://www.imf.org/en/News/Articles/2021/07/28/na-072821-five-things-to-know-about-the-informal-economy
8. https://www.imf.org/en/Publications/fandd/issues/2020/12/what-is-the-informal-economy-basics
9. https://www.worldbank.org/en/news/podcast/2021/05/24/as-covid-19-wreaks-havoc-on-service-workers-is-the-informal-sector-increasing-global-inequality-the-development-podcast
10. https://blogs.worldbank.org/developmenttalk/challenges-informality
11. https://www.oecd-ilibrary.org/docserver/2cfd8904-en.pdf?expires=1688100331&id=id&accname=guest&checksum=D724585EADD647A4DBCB997E1219D5C
12. https://www.oecd.org/dev/tackling-vulnerability-informal-economy-workers-still-without-social-protection.htm
13. https://socialprotection.org/discover/blog/designing-social-protection-policy-informal-workers.

Latest Articles

Fixa on Twitter