A new report from the International Labour Organisation outlines a set of propositions on how countries should go about formalising the informal economy. The report provides the basis for negotiations on the subject at the International Labour Conference in Geneva in June 2025.
Formalising the informal economy is a burning issue, particularly for countries in Africa. In some, such as Nigeria and Ghana, more than 80% of the workforce is informal.
According to the ILO report, the informal economy is a “structural barrier” to social justice and decent work. This is so because informal enterprises do not pay tax, therefore governments do not have the public revenue to meet their sustainable development goals.
