GUIDEBOOK: The Efficient Taxation of the Informal Sector in Africa
Informal sector (IS2) economic activities are prevalent in both developing and developed economies. In both economies, the informal sector is not a temporary, marginal, and peripheral phenomenon, but a permanent feature (Medina and Schneider, 2018 and Becker, 2004). It remains the main source of livelihoods to most African citizens since it employs 70% of the labour force in Sub-Saharan Africa (SSA) and 62% in North Africa (AfDB, 2013). Across various regions, International Labour Organisation (ILO)(2018) statistics indicate that informal sector employment in the non-agricultural sector is 78%, 57%, and between 45% and 85% in Africa, Latin America and the Caribbean regions respectively.