The United Nations Development Programme has called on African governments to seek more creative ways of harnessing the economic potential of the informal sector to deepen resilience.
Chief Economist and Head of Strategy, Analysis and Research at UNDP Africa, Raymond Gilpin, made the call on Tuesday at the ongoing African Economic Conference 2020.
Gilpin said, “For a sector that is daily waged, has to go out daily to earn a living to support families, quarantine is not really an option; we have to think more imaginatively on how we approach this and in a more comprehensive way rather than just thinking about the textbook approach to an epidemiological crisis.
“It is what puts food on the table for millions of Africans every day and they pay more taxes than the formal sector because they pay indirect taxes, council taxes and taxes through extortion.”
According to him, the sector accomplishes “tremendous things against incredible odds,” urging the continent to see it as a part of a lifeline for the economy.
Speaking, AfDB’s Director, Macroeconomic Policy, Forecasting and Research Department, Dr. Hanan Morsy, noted that the agriculture sector was among the most vulnerable sectors affected by the COVID-19 pandemic.
He stated, “We see this as an area that needs particular support, but also an area of opportunity going forward to increase inter-regional integration, to increase resilience against external shocks, for agriculture and food security.”
