Informal-formal linkages in market and street trading in Accra

Abstract

This article examines the relationships between informal market and street traders in Accra and the formal economy, focusing on the ways these connections can create both benefits and costs for informal workers.

Drawing on the Informal Economy Monitoring Study, the research analyses data from 15 focus groups and a survey of 150 traders operating in both central and non-central locations in Accra. It considers traders’ relationships with the value chain, government institutions, non-governmental organisations, financial institutions and wider economic conditions.

The findings show that government policies and macroeconomic conditions often have a strong negative effect on informal traders, although support from membership-based organisations and non-governmental organisations can help offset some of these pressures. Access to microfinance also has mixed effects, providing opportunities for some traders while creating challenges for others.

The study further shows that formal and informal economic activities are interconnected through supplier and retail relationships, even when these links are not always immediately visible. The authors argue that stronger benefits could be created if government and other institutions adopted a more supportive approach by improving infrastructure, services and access to adequate trading space for informal workers.