Informal Sector In Sub Saharan Africa

The multiple indicator-multiple cause (MIMIC) method is a well-established tool for measuring informal economic activity. However, it has been criticized because GDP is used both as a cause and indicator variable. To address this issue, this paper applies for the first time the light intensity approach (instead of GDP). It also uses the Predictive Mean Matching (PMM) method to estimate the size of the informal economy for Sub-Saharan African countries over 24 years. Results suggest that informal economy in Sub-Saharan Africa remains among the largest in the world, although this share has been very gradually declining. It also finds significant heterogeneity, with informality ranging from a low of 20 to 25 percent in Mauritius, South Africa and Namibia to a high of 50 to 65 percent in Benin, Tanzania and Nigeria.

The promotion of social protection in Sub-Saharan Africa happens in a context where informal labour markets constitute the norm, and where most workers live uncertain livelihoods with very limited access to official social protection. The dominant social protection agenda and the associated literature come with an almost exclusive focus on donor and state programmes even if their coverage is limited to small parts of the populations – and in no way stands measure to the needs. In these circumstances, people depend on other means of protection and cushioning against risks and vulnerabilities including different forms of collective self-organizing providing alternative forms of social protection. These informal, bottom-up forms of social protection are at a nascent stage of social protection discussions and little is known about the extent or models of these informal mechanisms. This book seeks to fill this gap by focusing on three important sectors of informal work, namely: transport, construction, and micro-trade in Kenya and Tanzania. It explores how the global social protection agenda interacts with informal contexts and how it fits with the actual realities of the informal workers. Consequently, the authors examine and compare the social protection models conceptualized and implemented ‘from above’ by the public authorities in Tanzania and Kenya with social protection mechanisms ‘from below’ by the informal workers own collective associations. The book will be of interest to academics in International Development Studies, Political Economy, and African Studies, as well as development practitioners and policy communities.

This book uses household surveys in five countries of Sub-Saharan Africa to describe employment off the farm in the region s growing informal sector and assesses how different forms of education and training, including apprenticeships, influence choices in employment and earnings.

Africa's Informal Workers is a vigorous examination of the informalization and casualization of work, which is changing livelihoods in Africa and beyond. Gathering cases from nine countries and cities across sub-Saharan Africa, and from a range of sectors, this volume goes beyond the usual focus on household ‘coping strategies’ and individual agency, addressing the growing number of collective organizations through which informal workers make themselves visible and articulate their demands and interests. The emerging picture is that of a highly diverse landscape of organized actors, providing grounds for tension but also opportunities for alliance. The collection examines attempts at organizing across the formal-informal work spheres, and explores the novel trend of transnational organizing by informal workers. Part of the ground-breaking Africa Now series, Africa’s Informal Workers is a timely exploration of deep, ongoing economic, political and social transformations.

In sub-Saharan Africa women work relatively more in the informal sector than men. Many factors could explain this difference, including women’s lower education levels, legal barriers, social norms and demographic characteristics. Cross-country comparisons indicate strong associations between gender gaps and higher female informality. This paper uses microdata from Senegal to assess the probability of a worker being informal, and our main findings are: (i) in urban areas, being a woman increases this probability by 8.5 percent; (ii) education is usually more relevant for women; (iii) having kids reduces men’s probability of being informal but increases women’s.

This publication reviews recent developments within technical and vocational education and training (TVET) in sub-Saharan Africa, as well as future challenges in skills development in the region. Based upon 70 case studies covering 20 countries, it provides a good starting point for the development of country policies and programmes, of relevance to other African regions as well as countries in other regions facing similar challenges. Issues discussed include: the labour market context, reform of public training programmes, regulation of non-government training institutions, enterprise-based training, building skills for the informal economy, balancing cost-effectiveness with growth and equity, and financing.