The impact of the informal sector on supply chains in Africa
2025
Parrot, Laurent | Biard, Yannick | Klaver, Dieuwke | Kabré, Edit | Vannière, Henri
The informal sector adds a systemic layer of uncertainty and risk for the performance of Food Supply Chains in sub-Saharan Africa. Based on interviews conducted among all the agents directly involved in the FSCs and international statistics, we analysed how the informal sector affects five mango FSCs in Burkina Faso in their economic, social and environmental performance. The informal sector accounts for about 30% of the total FSCs value, 67% of the total production, and 99% of the workforce. The lack of statistics, lack of legal compliance, lack of public infrastructure, increases the probability and severity of any given risk and therefore hinders investments. Firms internalise the risks with horizontal and vertical integration, the support of subsidies, or by avoiding the costs of international standards compliance. As a result, we distinguish subsidised resilience from informal resilience. FSC's resilience in sub-Saharan Africa will depend on how the level of state intervention, legal compliance and law enforcement will affect the informal sector.
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