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AI Alone Can't Formalise Africa's Informal Economy

Africa Finance Corporation's Samaila Zubairu says digital tools need physical infrastructure to bring the informal sector into the formal economy.

Updated on Nov. 3, 2026 in Finance — General

Screen-print poster illustration of a stacked shipping container and a lone utility pole on a flat plain beneath a warm sun, evoking infrastructure beneath digital tools.
Africa Finance Corporation chief Samaila Zubairu told a Luanda summit on Tuesday that AI and apps cannot formalise the continent's informal economy without physical infrastructure. AI Illustration. Upload story photo >

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At the Africa Financial Industry Summit in Luanda, Angola, Samaila Zubairu, chief executive of Africa Finance Corporation, warned that artificial intelligence and digital apps cannot formalise the continent's informal economy without investment in physical infrastructure. He spoke on the panel 'Capital Architecture: A New Age for African Finance' on Tuesday, November 3, 2026.

Why it matters

The informal sector accounts for about 83% of total employment in Africa, so how it is brought into formal systems shapes economic inclusion across the continent. Zubairu argued that software is ineffective where businesses lack electricity, storage and transport networks.

The informal sector accounts for about 83% of total employment in Africa, a share that remains outside formal financial and tax systems. The source does not report a comparator figure or a timeline for formalisation efforts.

The players

Samaila Zubairu

Samaila Zubairu is chief executive officer of Africa Finance Corporation, a multilateral development finance institution focused on infrastructure investment across Africa.

The details

Zubairu said China formalised vast informal sectors by building physical infrastructure that lowers the cost of doing business. He listed supporting elements needed for AI to drive formalisation, including digital service provision, land titles, tax systems, training, digital government access and business infrastructure.

Timeline

  1. Tuesday, November 3, 2026: Zubairu delivers panel remarks at the Africa Financial Industry Summit (AFIS 2026) in Luanda, Angola.

Market Dynamics

Zubairu cited China's build-out of physical infrastructure to formalise its vast informal sectors as the model for African economies. The argument frames infrastructure investment as a precondition for the digital and financial tools now being promoted.

For investors and development finance stakeholders, the argument points toward infrastructure projects as a route to expanding formal business activity and tax bases. The source does not describe specific investment vehicles or returns.

The takeaway

Zubairu's core point is that digital tools only work where the basics are in place, so physical infrastructure should come before or alongside technology investment. Stakeholders evaluating African growth should weigh infrastructure readiness as heavily as software adoption.

Further reading

For broader context on how markets and development finance shape economic policy, see Finance — General.

Source note: This article includes information reported by TechCabal.

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