Let’s Be Real: The Informal Sector and the Gig Economy are the Future, and the Present, of Work in Africa

16th October 2018

Let’s Be Real: The Informal Sector and the Gig Economy are the Future, and the Present, of Work in Africa

It’s time we recognized the truth about the future of work in Africa: it isn’t in the growth of full-time formal sector jobs. The future of work will be people working multiple gigs with “somewhat formal” entities. This is already true, and it will be for the foreseeable future. When we consider the future of work in Africa the question shouldn’t be whether jobs will be formal or informal, but how digital platforms and new technologies might make this type of work more productive and of a better quality for workers themselves.

When we plan for the future of e-commerce, technology, and employment, we need to improve the working conditions of independent workers, rather than continuing to pretend that regular, formal, contracted employment is the way that people want (or even should want) to earn a living. The informal sector has been the main driver of employment growth in Africa for decades, absorbing rising urban populations. While this sector is unproductive and lacks employee protections, we need to recognize that realistically, it’s where Africa’s youth bulge is going to find their livelihoods. 

African governments face a challenge: finding creative ways for gig workers to gain from the improvements in efficiency and productivity that digital platforms create, and accommodating the progressive inclusion of informal enterprise in the formal economy to generate value for all parties.

Report by Centre for Global Development