(Blog) To reimagine social protection, we need to look to African cities

Next week, the second World Summit for Social Development will be underway in Doha, Qatar. Heads of State, governments and other stakeholders will gather to discuss progress made since the Copenhagen Declaration on Social Development and its Programme of Action and renew their commitments towards reducing poverty, unemployment and social exclusion through the draft Doha Political Declaration.

Decent work and social integration, calling for social safety nets and support systems for all workers, is one of the core themes of the draft Doha Political Declaration. Social protection, as a measure of decent work, is largely financed through wages and payroll contributions by employers and employees. What does this mean for Africa, where more than 80 per cent of people are employed in the informal economy[i]?

Evidence points to persistent gaps in coverage, targeting, financing and delivery. Africa's social protection is piecemeal, modestly funded, and ill-suited to fast-growing informal cities, leaving millions vulnerable - undermining inclusive, resilient urban transitions.

While African governments have made efforts to extend national social protection to reach informal workers and some progress has been made on the types of benefits provided to all, coverage hovers at just 17.4 per cent, compared to a global average of 47 per cent.[ii]

A growing informal sector coupled with rapid urbanization poses severe challenges for the social agenda on the continent. Evidence shows that the urban population in Africa is growing an average of 3.5 per cent per year in many countries; a figure that is nearly double the global average.[iii]^,[iv] Whilst urbanization has traditionally been synonymous with opportunity, its benefits have been undermined by systemic and structural barriers in the region.

For example, as cities expand, migrants to urban areas have been met with limited jobs in the formal sector with informal employment absorbing more than 80 per cent of workers.[v]^{, [vi]} Some form of employment may seem like a win, but the quality of employment makes a big difference.

This is exacerbated by advances in technology, the gig economy, and the casualization of labour, all disrupting the financing of and access to social protection. In Africa, the informalization of labour and the impacts a significant number of people who work outside of formal wage employment. Some scholars[vii] speak of the "missing middle", or the non-poor population in informal employment, not poor enough to meet usual means tests for social assistance, but also not formally employed, leaving them unprotected.

Additionally, traditional social protection systems have been designed for rural, agricultural contexts, a new approach is needed to address the reality of a rapidly growing urban population. For example, as reported in 2021 in the aftermath of the COVID-19 pandemic, for every five safety net programs in rural areas, there was only one in urban areas.[viii] Although extreme poverty in rural areas remains a serious concern for the region, a rise in urban poverty tends to deepen social exclusion. Both multidimensional and complex, the extent of urban poverty is difficult to define and measure.[ix] Social protection systems therefore must be reimagined for the realities of Africa's future to consider these urban realities.

While rapid urbanization presents challenges, opportunities to advance social protection are also emerging. In cities, workers associations are innovating. Through informal kinship networks and cooperatives, workers are filling the gaps left by the state into examples of the social and solidarity economy, collectively extending protection while amplifying the workers' voice.

Examples from the region reveal that construction worker associations in Nairobi and Kisumu[x] provide opportunities for savings and loans as well as welfare training and employment information to its members; an alliance of informal economy associations in Zambiaworks to engage informal workers in Lusaka[xi] around social policy processes; and daladala drivers' associations in Dar es Salaam[xii][xiii] pool resources to jointly purchase vehicles. Furthermore, with more than half of urban residents digitally connected in the region, mobile and digital platforms are offering promising means for delivering benefits and expanding coverage beyond traditional banks and financial institutions.

As a way forward, these informal sector, worker-led schemes should be supported and integrated to complement national efforts. The collective agency of informal workers' associations can be transformational if bolstered by public and private efforts. This will require not only investments in better data on urban informality, but also further research on how such informal groups can be supported by innovative financing models, such as levies and taxes on digital platforms, to adapt to a changing world of work and funding models.

To promote sustainable, inclusive and equitable development, a few takeaways are clear: African cities are hubs of innovation, solidarity, and resilience. Reimagining social protection can create flexible and inclusive social protection systems. At the heart of progress will be the social dialogue that will need to take place between government, the private sector, worker associations and civil society. As preparations for the 2025 WSSD advance, the voices and experiences of informal and urban workers must be amplified to have lasting and impactful change.

Findings presented here are included in ECA's forthcoming 2025 State of Urbanization Report.