Meeting Cameroon’s Economic Challenges: The Essential Role of the Informal Sector

Cameroon, a Central African country, faces many economic challenges that hinder its development. Despite its abundant natural resources and economic potential, the country must overcome obstacles such as corruption, political instability and social inequality. However, one key element of Cameroon's economy could play a decisive role in solving these problems: the informal sector.

The Weight of the Informal Sector in the Cameroonian Economy

The informal sector represents a significant share of the Cameroonian economy, estimated at nearly 90% of total employment. These self-employed workers, small entrepreneurs and street vendors constitute a considerable, but often unrecognized and underestimated, economic force. They contribute significantly to the country's gross domestic product (GDP), although their activity is rarely counted in official statistics.

The Importance of the Informal Sector for Vulnerable Populations

The informal sector plays a vital role in labour absorption, particularly for the most vulnerable populations. Young people, women and people from disadvantaged backgrounds often find in this sector an opportunity to generate income and meet their needs. These informal activities, although precarious, allow many families to survive in a difficult economic context.

The Challenges of the Informal Sector

Despite its importance, the informal sector faces many challenges that hinder its development and contribution to the Cameroonian economy. These challenges include:

Limited Access to Funding

Workers in the informal sector often have difficulty accessing traditional financial services, such as bank loans or insurance. This situation prevents them from investing in the development of their activities and protecting themselves against economic uncertainties.

Lack of Social Protection

Workers in the informal sector generally do not benefit from social security, paid leave or unemployment benefits. This makes them particularly vulnerable in the event of illness, accident or job loss.

Low Institutional Recognition

The informal sector is often perceived as a marginal, even illegal, activity by public institutions. This distrust of informal sector actors results in a lack of support and recognition of their economic role.

Towards the Integration of the Informal Sector into the Cameroonian Economy

To address Cameroon’s economic challenges, it is essential to recognize and value the role of the informal sector. Appropriate public policies can help to:

Facilitating Access to Financing

The establishment of microfinance programs, loan guarantees and financial management training can help informal sector workers access the resources needed to develop their businesses.

Extending Social Protection

Extending social security systems to informal sector workers, particularly in health and pensions, would help improve their living conditions and strengthen their resilience to economic shocks.

Recognizing and Valorizing the Informal Sector

Governments must recognize the contribution of the informal sector to the Cameroonian economy and put in place measures to facilitate its integration, such as simplifying business registration and formalization procedures.

By valuing the informal sector and integrating it into a comprehensive economic development strategy, Cameroon could unlock immense potential for growth and job creation. This would help address the economic challenges facing the country and improve the living conditions of millions of Cameroonians.

Conclusion

The informal sector represents a key economic force in Cameroon, but one that remains too often marginalized. By recognizing its role and implementing appropriate policies, the Cameroonian government could stimulate entrepreneurship, create jobs, and reduce inequalities. This is a major challenge for the country’s economic future, which cannot be met without integrating the informal sector into the national development strategy.