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Understanding the informal economy in African cities: Recent evidence from Greater Kampala

Angus Morgan Kathage's picture
Informal metal worker in Katwe, Kampala. Photo: Angus Morgan Kathage/World Bank

The informal sector is a large part of employment in African cities. The International Labour Organization estimates that more than 66% of total employment in Sub-Saharan African is in the informal sector. With a pervasive informal sector, city governments have been struggling with how best to respond. On the one hand, a large informal sector often adds to city congestion, through informal vending and transport services, and does not contribute to city revenue. Furthermore, informal enterprises are typically characterized by low productivity, low wages and non-exportable goods and services. On the other hand, the informal sector provides crucial livelihoods to the most vulnerable of the urban poor. 

Cities for an emerging Senegal

Salim Rouhana's picture
Also available in: Français



With almost half of its population living in urban areas, Senegal is ahead of Sub-Saharan Africa’s average urbanization rate of 40%. Senegal’s urban population has almost doubled in the last few decades, rising from 23% in 1960 to 43% in 2013, and is projected to reach 60% by 2030. This growth comes with immense challenges, but also constitutes an opportunity for Senegalese policymakers to structurally transform the Senegalese economy.

Is living in African cities expensive?

Shohei Nakamura's picture

A comparison of costs of living across major cities in the world regularly intrigues people. The latest annual report by the Economist Intelligence Unit (EIU), for example, points to Singapore as the most expensive city to live in. The cheapest city in the ranking of 133 cities is Lusaka in Zambia, followed by two Indian cities Bangalore and Mumbai.