Plan to assist informal traders

Informal trade has long been a crucial component of Africa's economy, with women making up a significant portion of this sector. In Southern Africa, women represent 70 per cent of informal traders, while in other parts of the continent, they make up about 50 per cent. Despite its importance, much of this trade remains undocumented and unrecorded, posing challenges for policymakers and hindering the development of interventions to support these traders. Kanayo Awani, Managing Director of the Intra-African Trade Initiative at Afrexim Bank, emphasizes the need to prioritize formalizing informal trade to drive economic growth. Awani points out that only 60% of Africa's trade is currently recorded, highlighting the significant impact of the informal sector. Afrexim Bank has made it a priority to formalize 40% of informal trade by 2021 through initiatives such as internet-based e-commerce platforms. These platforms aim to leverage the high internet penetration in Africa to capture data and provide a structured trading environment for informal traders. Collaborations with partners are essential to achieving this goal. When it comes to training informal traders for formalization, Awani explains that the approach must be tailored to the diverse needs of traders. Some traders may require education on international trade practices, while others may need support in navigating border issues, customs procedures, and transportation challenges. Awani stresses the importance of not imposing unnecessary burdens on traders and advocates for a facilitative approach to enable seamless transition to formal trade channels. By empowering informal traders and providing them with the necessary tools and support, Africa can unlock the full potential of its informal economy and drive sustainable economic growth. As efforts are made to formalize the sector, collaboration between government entities, regional organizations, and private sector players will be key to ensuring the success of these initiatives. Through collective action and targeted interventions, Africa can harness the entrepreneurial spirit of its informal traders to create a vibrant and inclusive trading ecosystem that benefits all stakeholders. The formalization of informal trade holds the promise of not only expanding economic opportunities for traders but also contributing to overall economic development and prosperity on the continent.