Formalization of the Informal Economy in Africa: The Experience of Angola

Abstract

This paper examines the dynamics and structural transformation of Africa's informal economy through the lens of Angola’s Informal Economy Reconversion Program (PREI) from 2015 to 2024. Transitioning from an initial state-led mapping phase (PREI 1.0) to a sustainable, decentralized framework (PREI 2.0), the initiative successfully formalized over 251,450 operators by late 2022 despite a high baseline informality rate of 79.7 percent. By utilizing microcredit incentives, accelerating social security enrollment, and integrating domestic resource mobilization with financial inclusion, Angola offers a highly replicable roadmap for expanding tax bases and strengthening social safety nets across sub-Saharan Africa.

Keywords: Informal economy, PREI, economic formalization, domestic resource mobilization, Angola, Sub-Saharan Africa.

DOI: 10.7176/JESD/17-4-01

Publication date: June 30^th 2026