About 83% of all jobs in Africa were informal in 2024, highlighting the continued dominance of an economic model that sustains livelihoods while constraining public finances and social protection, according to consolidated figures from the UN Economic Commission for Africa (ECA).
The scale of informality has barely shifted over the past two decades, with the share of informal employment declined only marginally from 84.3% in 2005 to roughly 83% in 2024, The ECA data showed.
The informal economy represents between 30% and 40% of Africa’s gross domestic product (GDP), according to UNCTAD estimates and World Bank data. In Nigeria, the informal sector accounts for about 42.5% of GDP following a recent revision, the World Bank notes, underlining its significant economic contribution alongside weak fiscal intake.
According to the World Bank, countries with high levels of informality lose between five and 12 percentage points of GDP in potential public revenues. This revenue gap limits governments’ ability to finance public services, particularly in health, education and social protection.
The International Labor Organization (ILO) estimates that between 60% and 80% of African workers lack access to any formal system of social protection. Analyses cited by the Permanent Conference of African and Francophone Consular Chambers (CPCCAF) link this deficit directly to the prevalence of informal work.
Structural factors identified by employer groups and the ILO include low enterprise capitalization, limited education levels, rapid population growth and the predominance of rural economies where activities remain largely unregistered. The ILO also says informality often reflects a rational response to high tax burdens and complex administrative procedures in the formal sector.
According to ILO data, women account for more than 85% of informal jobs in several African countries, particularly in retail trade and domestic services, while young people are heavily concentrated in the sector. In Nigeria, the ILO reports that nearly 98% of workers aged 15–24 are employed informally.
