Africa’s economic future hinges on formalising informal sector — Shettima

Abdullateef Fowewe

The Vice President, Kashim Shettima, has emphasised that Africa’s economic success depends critically on integrating the informal sector—home to nearly 90% of the continent’s workforce—into the formal intra-African trade framework, especially through the African Continental Free Trade Area (AfCFTA).

This was obtained in a statement on Monday by the Senior Special Assistant to The President on Media & Communications (Office of The Vice President), Stanley Nkwocha.

The forum’s theme, “Building Resilient MSMEs through Digital Innovation, Market Access & Affordable Financing for Africa,” captures the urgent call for coordinated action to empower Africa’s informal sector and unlock the continent’s full economic potential.

Speaking at the opening of the 4th African Union Micro, Small and Medium Enterprises (MSMEs) Forum in Abuja on Monday, Shettima warned that failure to harness the informal sector’s potential would trap Africa in a “cycle of despair.”

He urged a continental call to action to embed informal businesses into formal trade systems, stating, “There can be no African prosperity without a strong MSME ecosystem. We owe it to ourselves, to our children, and to generations unborn, to integrate our informal economy into the framework of formal intra-African trade.”

Highlighting the critical role of MSMEs, he noted Nigeria’s example, “In Nigeria alone, MSMEs contribute a staggering 48 percent to our national GDP and employ over 84 percent of our workforce.

“They are engines of inclusive growth and effective tools for poverty alleviation.”

Shettima also stressed the importance of digital innovation and affordable financing, identifying limited access to finance as a “recurring nightmare” for MSMEs.

He expressed optimism about fintech’s role in expanding credit access stressing, “With AfCFTA, there is still hope. Technology is achieving what politics has struggled to actualize over the years. Policymakers must invest in digital infrastructure, bridge the digital literacy gap, and create regulatory frameworks that foster innovation.”

Welcoming delegates, the Vice President conveyed President Bola Ahmed Tinubu’s message of Nigeria’s hospitality and commitment to continental collaboration to compete globally.