The Informal Sector

Overview of the Informal sector in Africa

Challenges of the Informal Sector

While legal frameworks exist, their implementation in the informal sector is hindered by weak governance, lack of resources, and limited technical capacity among food vendors. Institutional oversight is fragmented, with multiple agencies operating without clear coordination. The absence of tailored policies that consider the realities of informal actors further exacerbates food safety risks, including contamination, unhygienic practices, and exposure to foodborne diseases. Other challenges are lack of infrastructure, limited inspection, a high level of informality, inadequate training and education, economic constraints, cultural and social factors, and inefficiency. With regards to infrastructure, the sector often lacks formal structure, record-keeping practices, basic infrastructure and amenities like potable water, waste disposal systems, and unreliable power supply, which make monitoring and enforcement difficult.

In addition, inspection in the informal sector rarely occurs. On the rare occasions that inspections do take place, they tend to be reactive rather than proactive, often triggered by food safety complaints or incidents rather than as part of a regular follow-up process. There is also a high level of informality driven by the lack of proper frameworks for registration and compliance, consequently promoting informal operations by producers and sellers, making it difficult for regulators to meet and enforce standards.

Without proper training, it is difficult to ensure compliance with food safety standards. However, informal market stakeholders largely constitute individuals who lack the training and education in food safety to facilitate interest and compliance with standards. The situation has amalgamated interest in stakeholder sensitization and training to possibly orient and drive mass participation by the informal sector in food safety management. Moreover, complying with food safety regulations can be costly making it challenging for small sellers and producers in the informal sector to meet the cost requirements of becoming or being compliant, ultimately driving a strong disinterest in complying with these standards.

There are diverse cultural and social barriers to food safety compliance. For instance, traditional practices and local customs can sometimes conflict with modern food safety regulations. Thus, enhancing acquaintance and adoption of modern practices would require a behavioural nudge and significant awareness-raising, which is difficult to easily implement among the vast representation of the informal sector in the modern African business ecosystem. There are systemic shortfalls like inefficiency within regulatory agencies which often undermine efforts to effectively enforce food safety standards.

Assessing the Informal Food Sector in African Countries: A Three-Stage Approach

The informal food sector in developing countries supplies 60–90% of food, employing millions through smallholders, traders, and vendors. Assessing its strengths and weaknesses requires a structured approach based on value chain mapping across three critical stages: Pre-Harvest, Production, and Distribution.

Stage I: Pre-Harvest (On-Farm Activities), Assessment Focus on:

Stage II: Production (Harvesting & Initial Processing), Assessment Focus on:

Stage III: Distribution (Transport, Markets, Retail), Assessment Focus on:

Cross-Cutting Assessment Considerations

The systematic assessment across pre-harvest, production, and distribution stages reveals targeted entry points for policy, infrastructure, and capacity-building investments to strengthen the informal food sector sustainably and address its specific needs, whereas in many instances, existing food safety policies and legislation do not differentiate between the formal and informal food sectors—applying uniform regulatory requirements across both. While this regulatory parity aims to ensure food safety and protect public health, it often overlooks the unique characteristics and constraints of the informal food sector.

Given this sector’s informality, limited regulatory reach, and high socio-economic relevance, conventional enforcement mechanisms designed for the formal sector are often impractical. Pilot programs in several African countries have proven the effectiveness of alternative and context-appropriate strategies to enhance food control systems within informal markets. these include:

Illustrative examples of these targeted interventions in the informal sector are presented below at the national level. At the continental level, the African Union’s initiative to support the development of continental/national food safety master plans, grounded in system-wide assessments, offers a promising framework for holistic action.