Global Summit on Economic Formalisation: Innovative Strategies for Inclusive Prosperity

Conference Details

Date: 05 February 2025

Time: To be announced

Duration: 2 days

Location: Abidjan, Côte d'Ivoire

Cost: Register online for more information.

Organiser: IOE - International Organisation of Employers and CGECI - General Confederation of Enterprises of Côte d'Ivoire

Conference Website

Conference Description

This summit is a joint event co-organised by the International Organisation of Employers and the General Confederation of Enterprises of Côte d'Ivoire (CGECI), in partnership with the European Union. It serves as a strategic platform for the Employers’ Group to prepare for the general discussion on informality at the International Labour Conference (ILC) scheduled for June 2025. It offers a unique opportunity for businesses, alongside insights from other stakeholders (multilateral organisations, development institutions, etc.), to contribute to shaping policies that foster a healthier, more sustainable business environment.

The informal economy presents a significant challenge for businesses globally. According to the International Labour Organization (ILO), around 61% of the global workforce - over two billion people - work in informal settings. This issue is particularly pronounced in developing countries, where informality can encompass up to 93% of workers. For formal businesses, informality creates unfair competition as informal entities often bypass tax and regulatory obligations, artificially lowering their operational costs. This disrupts markets, erodes profit margins, and complicates strategic planning for law-abiding companies. Additionally, the lack of social protection for informal workers limits their purchasing power, which in turn affects the overall demand for goods and services.

Informality also impacts essential infrastructure that businesses rely on. Reduced tax revenues due to informality hinder the funding of public services such as transportation, energy, and communications, which are vital for commercial activities. Vulnerable groups - including women, youth, and migrants - are disproportionately affected, depriving businesses of a pool of diverse and skilled talent.

Thus, it is crucial for the private sector to play an active role in the transition to formality. By supporting policies that encourage informal actors to integrate into the formal economy, businesses can help establish a more equitable competitive environment, stimulate economic growth, and open up new markets.