Informal workers and small businesses play a major role in Africa’s trade but often have little opportunity to influence the trade and labour policies that affect their livelihoods, according to new research by the International Labour Organization (ILO).
The ILO said more than three-quarters of jobs linked to trade and global supply chains are informal in 11 African countries for which data are available. The countries account for 45 per cent of employment in Africa, while more than 85 per cent of employment across the continent is informal, the highest rate of any region.
The findings are contained in a new ILO research brief, *Engaging Informal Economy Actors in Trade and Labour Policy in Africa*, which examines why informal workers and enterprises struggle to participate in policy dialogue and outlines ways to strengthen their voice.
According to the ILO, informal workers and enterprises are often directly affected by trade policy but are poorly represented when such policies are developed. It said formal exporting firms generally have greater access to policymakers, while informal economy actors may struggle to participate in consultations, raise their concerns or learn about measures intended to support them.
The brief builds on stakeholder evidence gathered for the ILO report, *Trade, Investment and Decent Work in Africa: Evidence and Stakeholder Perspectives*, which examined the relationship between trade, investment and employment and highlighted the importance of stronger links between trade and employment policies.
The ILO said a survey and consultations involving more than 70 stakeholders from workers’ and employers’ organisations, government institutions and civil society in Ghana, Kenya, Mozambique, South Africa and Uganda found that established consultation processes often fail to reach informal workers and businesses.
The organisation also said representation can be complicated by the realities of informal employment. Many people operate simultaneously as workers and own-account operators, making conventional distinctions between “worker” and “employer” difficult to apply and creating challenges for representation through traditional organisations.
The issue is particularly important in sectors closely connected to African and global trade. According to the ILO, almost 98 per cent of agricultural workers in Africa are informally employed, with many working at the lower tiers of supply chains and having limited relationships with major suppliers and buyers.
Informal cross-border trade is another major source of employment and livelihoods. The ILO said women make up the majority of informal cross-border traders in many parts of Africa and can face harassment and insecurity at borders, limited access to finance and difficulties navigating regional trade rules.
The brief highlights several ways informal economy actors can gain a stronger collective voice.
According to the ILO, cooperatives and associations can provide one route into established social dialogue structures, particularly when they build links with workers’ and employers’ organisations.
In Ghana, for example, the Ghana National Cocoa Farmers Association, which represents around 680,000 of the country’s estimated 800,000 cocoa farmers, is affiliated with the Ghana Federation of Labour. The ILO said the trade union has advocated on behalf of farmers in discussions with the government, including over adjustments to cocoa farm-gate prices.
The brief also identifies trade agreements as a potential avenue for more inclusive participation.
Under the African Continental Free Trade Area (AfCFTA), National Implementation Committees can provide platforms for governments, workers’ and employers’ organisations and civil society to participate in discussions on trade decisions with labour-market implications.
The ILO said trade union representatives already participate in such committees in several countries, including Ghana, Kenya, Namibia, Nigeria and Rwanda.
The organisation said strengthening links between these mechanisms and organisations representing informal workers and enterprises could help ensure that trade policy better reflects the realities of African labour markets.
The ILO concluded that supporting the transition from informal to formal employment remains essential. However, it said greater participation also matters, as giving informal workers and enterprises a meaningful voice in decisions affecting them can help ensure that opportunities created by expanding trade translate into broader and more inclusive development outcomes.
