FIMEC 2026: ILO Calls for Stronger Skills Systems to Drive the Transition from the Informal to the Formal Economy

• Facebook
• X
• Linkedin

Content also available in: français

ABIDJAN (ILO News) - While the informal economy remains a major source of employment and livelihoods, sustainable economic transformation requires creating pathways that enable workers and enterprises to progressively transition into the formal economy. This transition is essential not only for improving productivity and competitiveness, but also for expanding access to social protection, labour rights and quality employment.

That challenge faced by many African countries was at the heart of a high-level panel discussion on "Professionalising occupations and structuring economic sectors: supporting the transition from the informal to the formal economy", held from 15 to 16 July 2026 in Abidjan. Organized by the Agence Nationale de la Formation Professionnelle (AGEFOP) under the theme: "Skills, Employment and Economic Transformation in Africa: the Strategic Role of Vocational Training", the forum brought together government representatives, employers' and workers' organisations, training institutions, development partners and private sector actors to explore innovative approaches to skills development and employment creation.

Adame Traore, Technical Officer at the ILO Africa Skills Hub, contributes to the high-level panel discussion on "Professionalising occupations and structuring economic sectors: supporting the transition from the informal to the formal economy at FIMEC"

The ILO highlighted the critical role of skills development in supporting productive employment, enterprise growth and the transition to the formal economy. Across Africa, where many workers are employed in the informal economy, strengthening skills systems is essential for promoting decent work, increasing productivity and fostering inclusive economic transformation.

"Skills development is more than preparing people for jobs. It is a strategic investment in productivity, competitiveness and social inclusion. When workers and entrepreneurs have access to quality training, recognised qualifications and opportunities for lifelong learning, they are better equipped to grow their businesses, improve their livelihoods and participate fully in the formal economy," Adame Traoré noted.

The discussion recognised that millions of workers acquire valuable competencies through work experience, informal apprenticeships and entrepreneurship but often lack formal certification. Without recognised qualifications, many remain excluded from higher-value employment opportunities, financial services, public procurement and social protection.

Drawing on its global experience, the ILO emphasised that facilitating the transition from the informal to the formal economy requires integrated policy responses. Skills development should be complemented by supportive labour market institutions, enterprise development services, social dialogue and regulatory frameworks that encourage business formalisation while protecting workers' rights.

The ILO shared examples of interventions that have helped countries strengthen skills systems and improve labour market outcomes. These include supporting governments to develop competency-based Technical and Vocational Education and Training (TVET) programmes, promoting Recognition of Prior Learning (RPL) to certify skills acquired through work experience, improving the quality of apprenticeship systems, and assisting micro, small and medium-sized enterprises in increasing productivity and strengthening their management practices. Particular emphasis was placed on the importance of recognising existing skills in the informal economy. By validating competencies acquired outside formal education, workers can access further training, improve their employability and pursue new opportunities within the formal labour market.

Panellists of the high-level panel discussion on "Professionalising occupations and structuring economic sectors: supporting the transition from the informal to the formal economy at FIMEC in Abidjan"

The panel also highlighted the value of sector-based approaches that bring together governments, employers, workers' organisations and training providers to identify current and future skills needs. Better alignment between education systems and labour market demand can help address skills shortages while supporting the development of competitive and productive economic sectors.

Referring to the ILO Transition from the Informal to the Formal Economy Recommendation, 2015 (No. 204), ILO reaffirmed its commitment to supporting member States in designing integrated policies that facilitate formalisation while promoting decent work, social justice and sustainable enterprise development.

The discussion concluded with a shared commitment to strengthening partnerships among governments, employers' and workers' organisations, training institutions and development partners. Participants agreed that coordinated investment in skills development and occupational professionalisation will be essential to creating resilient economies, improving productivity and expanding opportunities for workers and enterprises alike.

The ILO reaffirmed that investing in skills is not only a pathway to employment but also a catalyst for formalisation, sustainable economic growth and decent work. Through continued collaboration with its constituents and partners, the ILO remains committed to strengthen skills ecosystems, promote formalisation and support sustainable economic growth across Africa.