“The informal economy is not a flaw, it is an untapped strength.” – Kwame Owino, Institute of Economic Affairs, Kenya
Across Africa, the informal sector drives employment and commerce. Lying outside of traditional structures, it is dynamism, a testament to resilience and innovation in the face of limited capital and formal opportunities.
Rather than replacing or suppressing it, policy and capital markets should focus on structuring support for the sector through simplified finance, legal protections and accessible pathways to scale.
When given recognition, access to structured capital and policies that lower barriers, informal enterprises can transition from survival to scalable businesses as they are already tested by demand, what they lack is growth capital.
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