 has estimated that Africa’s informal sector holds revenue potential of about $125 billion.){kind=link}
Africa’s Informal Sector Holds $125bn Revenue Potential, AfDB Reveals
The African Development Bank (AfDB) has estimated that Africa’s informal sector holds revenue potential of about $125 billion, urging governments to harness this opportunity more effectively.
AfDB Vice President and Chief Economist, Prof. Kevin Chika Urama, made the disclosure at the African Economic Conference 2026 in Abidjan, themed “Strengthening Africa’s Financial Agency in a Multipolar World.”
He noted that Africa has untapped revenue sources, including pension funds with potential additions of $500 billion, natural capital valuation of $66.1 billion, and the formalisation of the informal sector worth $125 billion.
Urama stressed that realizing these potentials requires decisive action to “increase transparency and accountability systems, strengthen institutions, improve public investment efficiency and address corruption and leakages.”
He added that simplified tax administration and fiscal prudence could encourage voluntary compliance. AfDB estimates show that Africa could mobilize $780 billion by improving tax systems and linking taxes to public service delivery.
AfDB President Dr. Sidi Ould Tah emphasized the need for Africa to shift from dependency to resilience and competitiveness, saying, “Africa’s geopolitical autonomy will be measured by its ability to negotiate from a position of strength and influence outcomes.”
UNDP Africa Chief Economist Raymond Gilpin described the conference as a platform to unpack solutions to Africa’s financial and economic challenges.
Speakers agreed that Africa must invest in human capital, infrastructure, renewable energy, and digital technology, while strengthening social contracts to reduce unemployment, inequality, and poverty.