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War on Want launches research report on informal economy organisations in Africa

A report highlighting the struggles that informal economy organisations are facing in Africa was launched by War on Want and its partners during a seminar on 3-4 May 2006 in Lilongwe, Malawi.

» Download the report (2.5Mb PDF, or two 450k PDF files part 1 and part 2)

The report, entitiled Forces for Change: Informal Economy Organisations in Africa, focuses on the experiences of informal economy organisations in Ghana, Malawi, Mozambique and Zambia, and is a joint research report between War on Want and the Workers' Education Association Zambia (WEAZ) and the Alliance for Zambia Informal Economy Associations (AZIEA).

It shows the contribution of informal economy workers to the overall economy and the need for wider recognition of the informal economy within the International Labour Organisation (ILO), trade union federations, local and central governments. This is achievable through the formulation of specific policies addressing the needs of these workers. They must also accept informal economy organisations as stakeholders in policy formulation processes.

It highlights how structural adjustment policies in the late 1980s and early 1990s have significantly contributed towards a rapid growth of the informal economy in many African countries. These policies encouraged governments to liberalise trade, to privatise state-owned enterprises and to reduce the size of the public sector. This led to a sharp decrease in employment in the formal sector and forced many to survive in highly precarious and insecure conditions in the informal economy.

Representatives from African informal economy organisations during the launch of the report.

From left to right: William Haji (Malawi Union for the Informal Sector - MUFIS), Mwanda Chiwambala (MUFIS), Mutale Mukasa (WEAZ), Lameck Kashiwa (AZIEA), Wendy Willems (War on Want), Francis Owusu (Ghana Trade Union Congress, Informal Economy Desk), Pat Horn (StreetNet International), Ramos Marrengula (ASSOTSI - Mozambique), Davies Chimombo (MUFIS) and Diana Taulo (MUFIS)

The report shows that in the past decades different organisations have been established with the purpose of representing the views of street traders, market vendors and other informal economy workers. National alliances of different informal economy organisations have been formed in e.g. Ghana and Zambia. Despite these developments, research has shown that these organisations have not been sufficiently consulted by local and central government.

While the informal economy is estimated to contribute between 38 and 49 percent towards the GNP of the four countries included in this study, workers in the informal economy have only gradually been acknowledged as stakeholders in policy formulation processes. Although the informal economy provides employment to between 70 and 90 percent of the labour force in Africa, none of the informal economy organisations part of our research project were involved in the consultation process leading up to the formulation of Poverty Reduction Strategy Papers (PRSP). Furthermore, governments have not adequately addressed the needs of informal economy workers in local and central government policies.

» Download the report (2.5Mb PDF, or two 450k PDF files part 1 and part 2)

» Read more about recent developments around street vending in Malawi

» Read more about War on Want's informal economy programme

» Make a difference - join us

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	Programmes Latest News War on Want launches research report on informal economy organisations in Africa A report highlighting the struggles that informal economy organisations are facing in Africa was launched by War on Want and its partners during a seminar on 3-4 May 2006 in Lilongwe, Malawi. » Download the report (2.5Mb PDF, or two 450k PDF files part 1 and part 2) The report, entitiled Forces for Change: Informal Economy Organisations in Africa, focuses on the experiences of informal economy organisations in Ghana, Malawi, Mozambique and Zambia, and is a joint research report between War on Want and the Workers' Education Association Zambia (WEAZ) and the Alliance for Zambia Informal Economy Associations (AZIEA). It shows the contribution of informal economy workers to the overall economy and the need for wider recognition of the informal economy within the International Labour Organisation (ILO), trade union federations, local and central governments. This is achievable through the formulation of specific policies addressing the needs of these workers. They must also accept informal economy organisations as stakeholders in policy formulation processes. It highlights how structural adjustment policies in the late 1980s and early 1990s have significantly contributed towards a rapid growth of the informal economy in many African countries. These policies encouraged governments to liberalise trade, to privatise state-owned enterprises and to reduce the size of the public sector. This led to a sharp decrease in employment in the formal sector and forced many to survive in highly precarious and insecure conditions in the informal economy. Representatives from African informal economy organisations during the launch of the report. From left to right: William Haji (Malawi Union for the Informal Sector - MUFIS), Mwanda Chiwambala (MUFIS), Mutale Mukasa (WEAZ), Lameck Kashiwa (AZIEA), Wendy Willems (War on Want), Francis Owusu (Ghana Trade Union Congress, Informal Economy Desk), Pat Horn (StreetNet International), Ramos Marrengula (ASSOTSI - Mozambique), Davies Chimombo (MUFIS) and Diana Taulo (MUFIS) The report shows that in the past decades different organisations have been established with the purpose of representing the views of street traders, market vendors and other informal economy workers. National alliances of different informal economy organisations have been formed in e.g. Ghana and Zambia. Despite these developments, research has shown that these organisations have not been sufficiently consulted by local and central government. While the informal economy is estimated to contribute between 38 and 49 percent towards the GNP of the four countries included in this study, workers in the informal economy have only gradually been acknowledged as stakeholders in policy formulation processes. Although the informal economy provides employment to between 70 and 90 percent of the labour force in Africa, none of the informal economy organisations part of our research project were involved in the consultation process leading up to the formulation of Poverty Reduction Strategy Papers (PRSP). Furthermore, governments have not adequately addressed the needs of informal economy workers in local and central government policies. » Download the report (2.5Mb PDF, or two 450k PDF files part 1 and part 2) » Read more about recent developments around street vending in Malawi » Read more about War on Want's informal economy programme » Make a difference - join us « top
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