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Africa at a Fork in the Road: Taking Off or Disappointment Once Again?<br />

Table 10.1: Distribution of Employment by Sector in Selected African Countries<br />

Source: Golub and Hayat (2014), from labor market surveys.<br />

10.2 Improvements along a continuum<br />

The informal sector consists of all activities operating outside the official legal and<br />

fiscal system. In Africa this definition encompasses considerable diversity and<br />

complexity of the informal actors. Many firms outside the reach of official industrial<br />

statistics are micro-enterprises, whereas others are very large or part of national<br />

or even international networks. Some enterprises straddle the formal and informal<br />

sectors, and thus the distinction between formal and informal status can be viewed<br />

as a continuum rather than a sharp division (Benjamin and Mbaye 2012a, 2012b;<br />

Steel and Snodgrass, 2008; Henley and others, 2006). Many informal enterprises<br />

have a taxpayer ID number, and some maintain sub-contractual relations with<br />

multinational firms.<br />

In most studies of the informal sector, business registration is used along with size<br />

to determine informal status. However, as Fox and Sohnesen (2013) point out, even<br />

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