The Informal Sector in Francophone Africa: Firm Size, Productivity, and Institutions (Africa Development Forum)

In West Africa a dynamic informal sector dominates the stagnant formal economy. Small operators coexist with very large and politically well-connected informal enterprises and well-organized networks. To date there have been relatively few systematic studies of this dual feature, and consequently too little is known about it. Determinants and appropriate policy responses are likely to differ between 'large' and 'small' informal operations. This study focuses on the urban informal sector in three capital cities: Dakar (Senegal), Cotonou (Benin) and Ouagadougou (Burkina Faso). These three countries have important differences and as a group, are quite representative of francophone West Africa and to a lesser extent West Africa as a whole. A mix of quantitative and qualitative approaches was used, with data obtained from original surveys of 900 firms in the three cities, interviews with knowledgeable stakeholders and participants, and all available secondary data. The results for West Africa presented in this book corroborate many findings from earlier studies, particularly for small informal firms. In addition, the book breaks new ground by shedding light on the large informal sector and the influence of institutional and socio-cultural factors in shaping the informal sector.