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September 10, 2025Review of Development Economics

Navigating the Governance Gap: Is Africa's Informal Sector Holding Back Economic Transformation?

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Authors

EHEmmanuel Umoru HarunaUAUsman AlhassanPEPrecious Muhammed Emmanuel

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Overview

Analysis reveals that informality negatively affects economic transformation in Africa, suggesting governance can mitigate these effects.

Key Points

  • Informality significantly hampers economic transformation in Africa, indicating a crucial barrier to progress.
  • When effective governance is in place, informality's negative impact can transform into a positive influence on economic advancement.
  • The analysis utilized novel datasets on African economic transformation over 18 years for robust findings.
  • Highlighting governance effectiveness is vital for facilitating structural transformation amidst high informality.

Cite This Study

Haruna et al. (2025) studied this question.

synapsesocial.com/papers/68c23e4fb210217d647912d2https://doi.org/10.1111/rode.70029
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Also Consider

Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context:

  1. 1nformality, Governance Institutions and Tax Revenue Performance in Africa2025
  2. 2Informal Economy, Governance, and Corruption2007
  3. 3Analysis of the Effects of Industrialization on the Shadow Economy in Africa2026 · 1 citations
  4. 4Financial Inclusion, Women Empowerment, and Informal Economy in Africa2025 · 8 citations
  5. 5Rethinking African in the Global Development Agenda: Pathway to Economic Transformation2025