Africa's Informal Sector Valued at $125 Billion, Says AfDB

At the African Economic Conference 2026 held in Abidjan, Côte d'Ivoire, Prof. Kevin Chika Urama, the Chief Economist of the African Development Bank Group, stated that Africa's informal sector is valued at $125 billion.

He highlighted the necessity for decisive actions to increase transparency and accountability, strengthen institutions, and improve public investment efficiency to unlock Africa's economic potential. The conference discussed the importance of enhancing revenue sources, with a focus on the potential of pension funds estimated at $500 billion by 2026-2027.

Prof. Urama pointed out that the African Economic Outlook report indicates that citizens will be more willing to pay taxes if the tax administration system is simplified and linked to public service delivery.

Dr. Sidi Ould Tah, President of the African Development Bank Group, emphasized the need for Africa to rise in global relevance and adapt to geopolitical changes.

The conference aimed to unpack solutions to address Africa's financial and economic challenges.