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Africa's gig opportunity

12 0 0
18.06.2019

By Olga Morawczynski and David Porteous

TORONTO ― The growth of digital platforms in Africa could offer new opportunities to bridge the current gap between often-insecure informal work and formal employment. Portable benefits, which move with a freelance worker from gig to gig, could drive this transition.

There are already about 300 active digital platforms in Africa, employing close to five million workers. They include e-commerce company Jumia, which was established in Nigeria and now operates in 14 countries on the continent.

The rise of such platforms has intensified the debate about the demise of the traditional employment contract and the persistence of widespread informal employment in Africa. This shift increases the risk of lower wages and lower-quality work. It also restricts workers' access to critical benefits, including sick leave, health insurance, workers' compensation, and employer-funded retirement savings plans.

Although informal work sometimes provides an adequate income, it often traps workers in a cycle of low productivity and even poverty. In most parts of the world, government policies fail to support and protect the growing number of freelance or gig workers, forcing them to navigate a regulatory grey zone.

Furthermore, informal........

© The Korea Times