Informal Sector in West Africa: Overcoming the Challenge of Formalization for a Better Contribution to Sustainable Development and its Financing

Abstract

The document examines the significant role of the informal sector in West African economies, which accounts for a substantial portion of GDP and employment. It highlights the challenges of formalizing this sector, such as high costs, complex regulations, and limited access to financing. The report also explores the potential benefits of formalization, including increased tax revenues and improved economic integration within the African Continental Free Trade Area. The study provides recommendations for policy reforms to facilitate the transition of informal businesses to the formal sector, thereby enhancing their contribution to sustainable development and resource mobilization.