Presenter: Leandro Medina - Economist
African Department
Our research explores the role of the informal economy in sub-Saharan Africa. The informal economy is an important component of most economies in the region, contributing between 25 and 65 percent of GDP, presenting both opportunities and challenges for policymakers. On the positive side, informal activity acts as a safety net, providing employment and income to a large population that may otherwise be unemployed in the absence of sufficient opportunities in the formal sector. At the same time, productivity in the informal sector tends to be much lower than in the formal sector. The authorities thus need to adopt a balanced approach to policies to formalize the informal sector, by focusing on increasing the productivity of the sector, while working on supporting the expansion of formal firms. In particular, policies aimed at improving access to finance and fostering product-market efficiency.
Moderator: Tilla McAntony
Communications Department
