Nigeria and South Africa are among countries losing big on forgone tax revenues that could be used to finance developmental projects and boost growth as the nations’ informal economy are largely non-formalised.
More than one in five working-age Africans are engaged in starting a new business, with more than 75 percent of youth planning to launch their own ventures within the next five years, according to the African Development Bank (AfDB).
Yet lack of transitioning into the formal economy is causing the continent with the largest youth population a whopping $125 billion in additional revenue for 46 African countries, funds that could be utilised for development financing, including investment to strengthen business capital.