London, UK//- The informal economy accounts for more than 80% of Africa’s workforce, creating significant broadband challenges and opportunities, according to the newly released Broadband and the Informal Economy in Africa report from Omdia.
The report defines the informal economy as all economic activities by workers and economic units that are, in law or in practice, not covered or insufficiently covered by formal arrangements.
It notes that the informal economy often thrives in contexts of high unemployment, underemployment, poverty, gender inequality, and precarious work.
This scale presents significant hurdles for digital transformation efforts by both service providers and government agencies. Traditional broadband deployment and payment models often fail to address the unique needs and circumstances of informal sector workers and businesses. However, the research reveals how mobile broadband and prepaid fibre solutions are gaining ground as viable connectivity options in this complex market landscape.
“Africa’s informal economy represents both a challenge and an opportunity for broadband expansion,” says Thecla Mbongue, Principal Analyst at Omdia. “Understanding the specific connectivity requirements and payment preferences of this demographic is essential for successful digital inclusion.”
Omdia’s Broadband and the Informal Economy in Africa report provides a comprehensive analysis of:
- Broadband infrastructure challenges specific to informal economy environments
- The rise of mobile broadband as a flexible connectivity solution
- Smartphone usage and device financing options
- Prepaid fiber models that accommodate irregular income patterns
- Policy considerations for governments seeking to expand digital access
- Strategic recommendations for service providers targeting informal sector customers
As digital services become increasingly essential for economic participation, bridging the connectivity gap in Africa’s informal economy will be crucial for inclusive growth and development across the continent.
