The African Development Bank (AfDB) has estimated the potential revenue of Africa's informal sector at $125 billion, urging governments across the continent to harness this economic force more effectively. The figure was cited in a recent AfDB report on economic transformation.
The informal sector accounts for a significant portion of Africa's GDP and employment, yet remains largely untaxed and unregulated. The AfDB's call aims to integrate these activities into formal economies to boost tax revenues and improve working conditions.
No specific date for the report's release was provided in the source article, and the AfDB's official website does not list a 2026 report with this exact figure as of July 13, 2026. The $125 billion estimate appears to be a projection or a cited figure from earlier analysis.
Experts note that formalizing the informal sector is complex, requiring tailored policies that address the needs of small traders and entrepreneurs without stifling their livelihoods.
