By Yink Adegoke
From the brief:
“Hi, Quartz Africa readers!
SWEET GIG
One of my favorite anecdotes from a few years back, shared here before, is of the Nairobi Uber driver who on learning I had just arrived from New York, asked: “Do they have Uber in the US?” Since then I’ve encountered many drivers from Lagos to Cape Town and noted how quickly ride-sharing has spread in some of the big African cities, although, not without its challenges.
It’s also been interesting to see the rapid rise of Airbnb as a much needed alternative in some of Africa’s largest cities which have a shortage of affordable international standard hotels.
Uber and Airbnb are a big part of discussions about the short-term, freelance work “gig economy“, but in real terms they’re actually a small section of it.
For many African countries, the gig economy could just be called “the economy”. For example, just 17% of Kenyan employment is formal. Many of the economies are driven by the informal nature of the gainful employment that exists. The Center for Global Development addresses this in a paper this month which notes digital platforms help African freelance workers and budding enterprises on the path to formalization. But while this isn’t unique to Africa, it points out the degree to which these services are needed in Africa is what is unique. “Most entrepreneurs have never worked in the formal sector, nor do they have mentors who have created larger businesses.”
CGD’s research found people in African cities tend to like this type of flexible work, be it ride-share drivers, e-commerce sellers or home stay hosts. CGD identifies another category of African e-worker called “digital translators”. In this context it means like when Kenya’s Safaricom employs 5,400 people formally, but has 130,000 mobile money outlets, which typically employ one or two people. Or e-commerce leader, Jumia, which employs 3,000 people across Africa, but has another 100,000 commission-based affiliates who help customers make orders.
Of course, it’s not all plain sailing with gig work in Africa—just like with operating in more advanced economies. Disruption has raised tensions in certain traditional sectors where high unemployment means the stakes are even higher. There are also the same questions of whether gig workers will get a fair share of profits.
There does seem a better opportunity for African governments to raise much needed taxes in the medium to long-term, but for now CGD suggests the best option to make gig work better might be to “recognize it for what it is, neither formal employment not self-employment, and not as one job but a portfolio of different gigs.”
Read the full brief here.