M PRA

Munich Personal RePEc Archive

Gig Sector in the African Economy:

Frameworks, Challenges and Prospects

Nwaobi, Godwin

QUANTITATIVE ECONOMIC RESEARCH BUREAU, NIGERIA

BRITISH UNIVERSITY

23 March 2024

Online at https://mpra.ub.uni-muenchen.de/120532/
MPRA Paper No. 120532, posted 27 Mar 2024 15:03 UTC
 GIG SECTOR IN THE AFRICAN ECONOMY:
FRAMEWORKS, CHALLENGES AND PROSPECTS

GODWIN CHUKWUDUM NWAOBI

PROFESSOR OF ECONOMETRICS
[email protected]
[email protected]
+234 8035 9250 21

QUANTITATIVE ECONOMIC RESEARCH BUREAU

ABIA STATE NIGERIA, WEST AFRICA
www.quanterb.org
AND
VISITING PROFESSOR OF ECONOMICS
NIGERIA BRITISH UNIVERSITY ABIA STATE,
NIGERIA WEST AFRICA.

MARCH, 2024.

1
 ABSTRACT
Notably, Africa countries have enjoyed relatively strong economic growth for the past
years (decade) mainly because of impressive global demand for primary commodities.
Unfortunately, Africa’s economic growth had failed to generate many good jobs and
thus postponing the benefits of the demographic divided of a large working-age
population. Consequently, digital (online) gig work is rapidly increasing new form of
work that poses tough challenges and tradeoffs for African governments. Essentially,
these gig jobs could be a stepping stone to better-quality jobs for young or low-skilled
workers by way of assisting them to learn critical digital skills that closes the digital
divide. However, gig workers are not usually protected by labor regulations against
unfair practices or abuse or injuries at work. Therefore, this paper argues that given
the low levels of implementation of labor laws in African countries, future polices
should consider various stakeholders in the gig ecosystem (from both supply and
demand sides) as well as digital platforms operation. In other words, as several
continents have made the transition to technology-enabled platforms for services;
Africa should not be left out of the digital boom for the sake of prosperity and
sustainable development.

KEY WORDS: GIG WORK, DIGITAL WORK, AFRICA, DIGITAL PLATFORMS,

MICROTASK, LABOUR POLICIES, REGULATIONS, AFRICAN GOVERNMENTS, LABOUR
MARKET, DIGITAL CURRENCY, GIG SUPPLY, GIG DEMAND GIG SERVICES, POLICY
MAKERS, LABOUR LAWS DEVELOPMENT, ECONOMIC GROWTH, ONLINE WORK.

JEL: E20, E24, E26, E61, E62, G23, H24, H80, H55, I30, I31, J80, J65, J45, J40, J01,
JO8, J21, J24, K31, M13, O30, O38, O15.

1.0 INTRODUCTION:

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As the second largest of the earth’s seven continents, Africa had high hopes of
rapid development at independence. In fact, as at 1961, the overall economic
growth in sub-Saharan Africa were impressive and the pace quickened after
1967. But as the 1970s advanced, Countries began to stumble while as by the
1980s output actually declined. However, aggregate annual growth initially rose
but generally declined within these periods (excluding oil economics).
Specifically, Africa’s poor performance were reflected in weak growth in the
productive sectors, poor export performance, mounting debt, deteriorating
social conditions, environmental degradation as well as increasing decay of
institutional capacity. Notably, both domestic and external factors contributed
to the disappointing overall performance. However, all Countries in the region
were confronted with deep-rooted developmental constraints (such as rapid
population growth, low human capital development and inadequate
infrastructures (world bank, 1989).

Furthermore, ethnic conflicts, political instability, adverse security conditions

and protracted civil wars aggravated the economic performance of several
Countries. Structurally, inappropriate policies which resulted in relative price
distortions in most of the key sectors adversely affected economic incentives
and production.

Therefore, these price distortions combined with the severe external shocks of
the 1970s/1980s including declining terms of trade, drying up of foreign capital
inflows and rising world interest rates weakened many economics of sub-
Saharan Africa (Elbadawi, Ghura and Uwujaren, 1992; Gura and Hadji Michael,
1996). However, the failure of many Countries throughout these periods to
accommodate the adverse effects of negative external shocks compounded the
negative impact of the observed shocks.

Consequently, as at early 1980’s, many African Countries realized the urgent

need for economic policy reforms to address their short terms balance of
payment crisis as well as long term productivity improvement. Thus, the World

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 Bank structural adjustment programs were designed to enable countries
reforms their policies in order to boost the structure of incentives and raise the
profitability of the various sectors without unduly high reductions in
consumption per capital. Even though many African Countries vigorously
pushed through their adjustment programs, economic growth declined.

Therefore, scholars have argued that adjustment programs placed Africa on a

slow growth path, undermined efforts to diversity economically as well as
eroding the continents industrial base. Clearly, by the end of the 1990s, the
international financial institutions started to reconsider their approaches while
the United Nations System was setting the Millennium Development Goals
(MDG) targets. As was indicated, for Africa to be a global growth pole, its
economy should have been large and its growth high and sustainable for a
reasonable long period unfortunately, the size and consistency of growth
required for significant poverty reduction were not fully realized. Specifically,
for the years 2000 – 2010, average growth (aggregate and per capital) fell
short of the required rate in each African sub-region as shown in table 1.1
(UNECA, 2012; World Bank, 2011; United Nations, 2012).

However, as at 2013, Africa was the world’s fastest growing continent and
G.D.P. was expected to rise in the subsequent years. Yet, for many economics
across the African continent, the widespread and rapid increase in inflation
which prompted monetary policy tightening around the world; meant slowing
external demand, higher domestic interest rates, elevated sovereign spreads
and massive exchange rate pressures. In addition to high debt levels and deep
structural challenges, these factors have combined to reduce access to external
funding.

Consequently, growth in Africa is expected to continue to decline since COVID-

19 pandemic as shown in table 1.2 and 1.3 (IMF, 2023; ADB, 2023).

TABLE 1.1 AFRICAN REGIONAL GDP GROWTH RATES: ACTUAL VS

REQURED
A B C D E F

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S/N. SUBREGIONAL PERCAPITA PER CAPITA AGGREGATE AGGREGATE
AFRICA GROWTH GROWTH REQUIRED GROWTH GROWTH
REQUIRED (%) (%) (2000-2012) REQUIRED (%) ACTUAL 2000
(2000 - 2010) (2000-2010) – 2010 (%)

1. NORTH 3.60 3.09 5.60 4.91

AFRICA

2. WEST 4.71 2.66 7.61 5.31

AFRICA

3. CENTRAL 3.90 2.15 6.70 4.67

AFRICA

4. EAST AFRICA 5.40 2.89 8.1`2 5.72

5. SOUTHERN 3.80 2.58 6.20 4.58

AFRICAN

TABLE 1.2 AFRICAN COUNTRIES: COMPARATIVE REAL GDP

GROWTH RATES
A B C D E F G H I

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S/N. COUNTRY SUB- 2011-2019 2020 2021 2022 2023 2024
REGIONS (%) (%) (%) (%) (%) (%)
1. ALGERIA NORTH 2.6 - 5.1 3.4 3.2 3.8 3.1
AFRICA
2. ANGOLA SOUTHERN 2.0 - 5.6 1.2 3.0 1.3 3.3
AFRICA
3. BENIN WEST AFRICA 5.1 3.8 7.2 6.3 5.5 6.3
4. BASWANA SOUTHERN 4.1 - 8.7 11.9 5.8 3.8 4.1
AFRICA
5. BURKINA WEST AFRICA 5.7 1.9 6.9 1.5 4.4 6.4
FAJO
6. BURUNDI EAST AFRICA 1.9 0.3 3.2 1.8 3.3 6.0
7. CAPE VERDE WEST AFRICA 3.0 - 19.6 6.4 17.0 4.4 4.5
8. CAMEROON CENTRAL 4.4 05 3.6 3.8 4.0 4.2
AFRICA
9. CENTRAL CENTRAL - 0.7 1.0 1.0 0.5 1.0 2.5
AFRICAN AFRICA
10. CAHD WEST AFRICA 2.4 - 2.1 - 1.2 3.4 4.0 3.7
11. COMORUS EAST AFFICA 3.1 - 0.2 2.1 2.6 3.0 3.5
12. CONGO DEMO CENTRAL 5.9 1.7 6.2 8.9 6.7 4.7
REP. AFRICA
13. CONGO REP. CENTRAL 0.3 - 6.3 1.1 1.7 4.0 4.4
OF AFRICA
14. COTE WESTA 6.5 1.7 7.0 6.7 6.2 6.6
D’IVOIRE AFRICA
15. DJIBOUTI NORTHA 6.1 1.3 4.5 3.2 5.0 6.0
FRICA
16. EYPT NORTH 3.8 3.6 3.3 6.7 4.2 3.6
AFRICA
17. EQUATORIAL CENTRAL - 2.7R - 4.8 - 0.4 3.2 - 6.2 - 5.5
GUINEA AFRICA
18. ERITREA EAST AFRICA 4.6 - - - - -
19. ESWATINI SOUTHERN 2.5 - 1.6 7.0 3.6 3.1 3.3
AFRICA
20. ETHIOPIA EAST AFRICA 9.5 6.1 6.3 6.4 6.1 6.2
21. GABON CENTRAL 3.7 - 1.8 1.5 3.0 2.8 2.6
AFRICA
22. GAMBIA WEST AFRICA 2.5 0.6 5.3 4.9 5.6 6.2
23. GHANA WEST AFRICA 6.5 0.5 5.1 3.1 0.2 2.7
24. GUINEA WEST AFRICA 6.2 4.7 5.0 4.3 5.7 5.6
25. GUINEA WEST AFRICA 3.4 1.5 6.4 4.2 4.5 5.0
BISSAU

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26. KENYA EAST AFRICA 4.7 - 0.3 7.6 4.8 5.0 5.3
27. LESOTHO SOUTHERN 1.5 - 3.9 1.8 2.1 2.1 2.3
AFRICA
28. LIBERIA WEST AFRICA 2.8 - 3.0 5.0 4.8 4.6 5.3
29. LIBYA NORTH 2.5 - 29.5 28.3 - 9.6 12.5 7.5
AFRICA
30. MADAGASCAR SOUTHERN 3.2 - 7.1 5.7 4.0 4.0 4.8
AFRICA
31. MALAWI SOUTHERN 4.1 0.9 4.6 0.8 1.7 3.3
AFRICA
32. MALI WEST AFRICA 4.3 - 1.2 3.1 3.7 4.5 4.8
33. MAURITANIA NORTH 4.5 - 0.9 2.4 6.5 4.5 5.3
AFRICA
34. MAURTIUS SOUTHERN 3.7 - 14.6 3.4 8.7 5.1 3.8
AFRICA
35. MOROCCO NORTH 3.5 - 7.2 8.0 1.3 2.4 3.6
AFRICA
36. MOZAMBIDUE SOUTHERN 5.5 - 1.2 2.4 4.2 7.0 5.0
AFRICA
37. NAMIBIA SOUTHERN 2.8 - 8.1 3.5 4.6 2.8 2.7
AFRICA
38. NIGER WEST AFRICA 5.9 2.5 1.4 11.9 4.1 11.1
39. NIGERIA WEST AFRICA 3.0 - 1.9 3.6 3.3 2.9 3.1
40. RWANDA EASTA FRICA 7.1 - 3.4 10.9 8.2 6.2 7.0
41. SAO TOME SOUTH 3.6 2.6 1.9 0.1 0.5 2.4
AND PRINCIPE AFRICA
42. SENEGAL WEST AFRICA 5.0 1.3 6.5 4.0 4.1 8.5
43. SEYCHELES EAST AFRICA 6.8 - 8.5 2.5 8.7 4.2 3.3
44. SIERRA WEST AFRICA 5.0 - 2.0 4.1 4.0 2.7 4.7
LEONE
45. SOMOLIA NORTH 3.2 - 2.6 3.3 2.4 2.8 3.7
AFRICA
46. SOUTH SOUTHERN 1.6 - 6.0 4.7 1.9 0.9 1.8
AFRICA AFRICA
47. SOUTH JUDAN EAST AFRICA - 5.3 - 6.5 5.3 0.5 3.5 4.2
48. SUDAN NORTH - 0.9 - 3.6 0.5 - 2.5 - 18.3 0.3
AFRICA
49. TANZANIA EAST AFRICA 6.7 4.8 4.9 4.7 5.2 6.1
50. TOGO WEST AFRICA 5.5 2.0 6.0 5.8 5.4 5.3
51. TUNISIA NORTH 1.8 - 8.8 4.4 2.5 `1.3 1.9
AFRICA

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52. UGANDA EAST AFRICA 5.3 - 1.2 5.7 6.4 4.6 5.7
53. ZAMBIA SOUTHERN 4.3 - 2.8 4.6 4.7 3.6 4.3
AFRICA
54. ZIMBABWE SOUTHERN 4.6 - 7.8 8.4 6.2 4.1 3.6
AFRICA

TABLE 1.3 AFRICAN REGIONS: COMPARATIVE REAL GDP GROWTH RATES

S/N. CALSSIFICATIONS 2011-2019 2020 2021 2022 2023 2024

(%) (%) (%) (%) (%) (%)
(A) AFRICA (GENERAL) 3.6 - 1.7 4.8 3.9 3.2 3.8

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(B) AFRICA (NORTHERN) 3.3 - 1.9 5.0 3.8 3.0 3.5
(C) AFRICA (SUB-SAHARAN) 3.8 - 1.6 4.7 4.0 3.3 4.0
(D) AFRICA (RESOURCE 3.0 - 3.6 4.7 2.7 2.4 3.3
INTENSIVE)
(E) AFRICA (NON- 4.4 0.9 5.0 5.5 4.34 4.4
RESOURCE INTENSIVE)

In fact, the African continent still faces a range of dauting challenges to economic
stability over the near term while the continent’s future resilience and longer-term
prosperity depend critically on certain difficult structural reforms. Again, recent
environmental challenges in some parts of Africa are stark reminders of the

9
devastation that can ensure from sudden natural disasters and weather-related
events. Yet, a number of other risks could materialize and these include commodity
price volatility as well as slowdown in African’s trading partner countries which reduces
world demand with adverse consequences for the continent.

Notably, inflation is still too high and subject to risk. Although these rates are trending
down for most Africa’s economics, inflation is still double digit and thereby adding to
the cost-of-living challenge faced by the continent’s most vulnerable. Furthermore,
public debt vulnerabilities remain elevated. Therefore, many African counties are
expected to continue struggling to generate the sustained inclusive and job rich
growth needed to recover lost ground from the recent multi-year crisis or keep pace
with the continent’s expanding population. Again, the recent examples of political
instability with several coups or attempted coups in the Sahel region underscore the
worrying implication of persistent fragility in the continent.

Consequently, two dynamics are central for Africa’s future development:

(1) The region’s on-going demographic shift and

(2) The globally unfolding fourth industrial revolution clearly the first digital
technologies have positively swept across Africa. In other words, mobile
phones, text-based applications and early stages of internet penetration had
profound effects on African jobs. Yet, these initial information and
communication technologies (ICTs) are just a small precursor to the newer
types of fourth industrial revolution technologies (FIRTs) that have just began
to emerge. Essentially, FIRTs are the board confluence of new innovations that
reinforce one another. Basically, some are powered by machine learning and
artificial intelligence, based on big data sets.

Similarly, others are3 the result of a tipping point at which increased global
connectivity and platform economics change the face of societies. Structurally,
these innovations may change some sectors of a given economy more than
others (Melia, 2019; Diamardis and Kotler, 2020). Again, these influences may
go far beyond production processes given the capacity to change all facets of
life. Specifically, many of Africa’s menial jobs in the informal and rural economy

10
 may initially remain less affected. But globally, these new tools are changing
the factor compositions of every sector by way of augmenting or automating
most existing job tasked as well as creating new openings for more productive
(and more fulfilling) jobs in areas that are non-existing.

Therefore, this situation poses both threats and opportunities for Africa’s future
labor markets. In other works, this brings a distinct angle to the question of
how new and better jobs could be created in Africa Even though exporting
agricultural commodities or extractive resources and serving domestic markets
will all remain important, this paper focuses on establishing critical sectors that
are particularly promising for Africa (as entry barriers are low and employment
effects potentially large). Specifically, the growing digitization of all aspects of
life as well as the growing connectivity across continents are creating more
work tasks in IT-enabled services. And as the spectrum of digital work task will
continue to grow over the course of emerging revolutions this research paper
examines the relevance of digital services exports as a particular avenue for
creating future-oriented jobs in Africa. Therefore, the rest of the paper is
structured as follows:
After the introductory section, section two provides an overview of the
emergence of the digital economies section three examines the digital labor
market Networks while section four explores the gig sector performance in
Africa as well as the challenges of the African gig sector. The future prospects
with policy options are presented in section five and section six concluded the
paper as appropriate.

2.0 DIGITAL ECONOMY EMERGENCE

Historically, modern computing began in 1945 with the commercialization of
technologies developed during World War II. Over time, storage technology,
software and hardware improved so that information processing and
reproduction became widespread.
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Thus, software and hardware industries also grew rapidly (Ceruzz, 2003, Gold
ford and Tucker, 2019). However, limited communication between computers
limited their effect on the economy. Subsequently, with the rise of the internet,
the representation of information in bits began to have a measurable effect on
multiple markets. Technically, this rise was built on key inventions that define
internet communication: Transmission Control Protocol (TCP) and Internet
Protocol (IP). Essentially, these technologies have enabled increased collection
and data usage (Greenstein, 2015).

Therefore, as data transmission became a key aspect of digital technology, the

question of net neutrality becomes a central research and policy focus. In other
words, research on digital economics examines whether and how digital
technology changes economic activity. More fundamentally, digital economics
explores how standard economic models change as certain cost full
substantially and even approaches zero.

Basically, this shift in cost can be divided into five categories: lower search
costs, lower replication costs, lower transportation costs, lower tracking costs
as well as lower verification costs.

Indeed, search costs are lower in digital environment and thus enlarging the
potential scope and search quality. Again, digital goods can be replicated at
zero cost which implies that they are often non-rival. Similarly, the role of
geographic distance changes as the cost of transportation for digital and
information is approximately zero. And while digital technologies can make it
easier to track any individual’s behavior; digital verification can also make it
easy to verify the reputation and trustworthiness of any individual firm or
organization in the digital economy clearly each of these cost changes draws
on a different set of well-established economic models (such as search models,
non-rival goods models, transportation cost models, price discrimination models
and reputation models).

However, recent studies have emerged that found some inconsistencies with
the simple models, and have the emergence of richer models of cost reductions
developed to take account of the subtleties of the digital context (Smith et al.

12
 2001; Ellison, 2005) as well as the implications of these lower search and
transportation costs for industrial organization with respect to increasing return,
distance and two – sided markets (Ellison and Ellison, 2009). Consequently,
digitization has become one of the most important economic themes of the
future (affecting both the economy and society as a whole). Thus, digitization
can be defined as the conversion of signals and media objects (such as
documents, images or sounds) into digital form that are processed stored and
transmitted via digital devices and networks due to the adoption of digital
technologies with the use of systems built on them. On the other hand,
digitalization is the organizational process or business process of the
technologically-induced change within industries, organizations, markets and
branches.

Specifically, the following effects are observed:

• Digitalization of industries has enabled new production processes such as the

internet of things, industrial internet, industry 4.0, machine to machine
communication, artificial intelligence and machine vision.
• Digitalization of business and organizations has induced new business models such
as freemium, new e-government services, electronic payment office automation
and paperless office processes (using technologies such as smart phones, web
application, cloud services, electronic identification, block chain, smart contracts,
crypto currencies) as well as business intelligence using Big Data.
• Digitalization of education has also induced e-learning and MOOC courses.

However, digital transformation is described as the total and overall societal effect of
digitalization. In other words, digitization has enabled the process of digitalization
which resulted in opportunities to transform and change existing business models,
consumption pattern, socio-economic structures, legal and policy measures,
organizational patterns, cultural barriers as well as the whole society digitality.
Therefore, it is anticipated that digitization (technical conversion), digitalization
(business process) and digital transformation (effect) will accelerate and illuminate the
various observed horizontal and global processes of change in the society.

13
Specifically, many digital businesses or services are using a platform or two-sided
market model which match buyers with sellers or a service user with a provider. As
shown in figure 2.1, in a ride sharing service, the platform automatically matches
drivers and passengers (innovation) while the driver takes advantage of a flexible
income earning activity not otherwise accessible (inclusion).

Similarly, the passenger benefits from greater convenience and often however prices
(efficiency) while crowd funding, job matching, room sharing operates in the same
manner (World Bank, 2016).

Consequently, the benefit of digital technologies filter throughout the

economy as shown below:

(A) For businesses, the new technologies promote inclusion of firms in the world
economy by expanding trade, raises the productivity of capital; and intensities
competition in the market place (which in turn induces innovation).
(B) For households, it brings opportunities by creating jobs, leverages human
capital and produces consumer surplus.
(C) For governments, it enables citizens to access public services, strengthens
government capability as well as serving as a platform for citizens to tackle
collective action problems.

However, these benefits are neither automatic nor assured, but in several instances
or cases, emerging digital technologies can bring significant gains as illustrated in
figure 2.2 below:

FIGURE 2.1 DIGITAL TRANSACTIONS: TWO SIDE D MARKET MECHANISMS

INNOVATION

PLATFORMS

14
 INCLUSION EFFICIENCY

SELLERS BUYERS

DRIVERS HOSTS ON OBM AND RIDERS, QUESTS AND

AND FREE LANCERS SHARING ECONOMYU SMALL BUSINESSES

JOB SEEKERS, TRAVELERS

MATCHING EMPLOYERS, AIRLINES
ENTREPRENEURS AND AND HOTELS INVESTORS
PLATFORMS
ARTISTS AND CONSUMERS

JOB SEEKERS, TRAVELERS

MATCHING EMPLOYERS, AIRRUNES
ENTREPRENEURS AND AND HOTELS INVESTORS
PLATFORMS
ARTISTS AND CONSUMERS

FIGURE 2.2 DIGITAL TECHNOLOGIES: POTENTIAL BENEFITS

DIGITAL
TECHNOLOGIES

15
 INCLUSION EFFICIENCY INNOVATION

CAPIAL
BUSINESSES TRADE COMPETITION
UTILIZATION

JOB LABOR CONSUMER

PEOPLE PRODUCTIVITY
OPPORTUNITIES WELFARE

PUBLIC SECTOR
GOVERNMENTS PARTICIPATION VOICE
CAPABILITY

3.0 DIGITAL LABOR MARKET NETWORKS

Traditionally, firms have operated within business. However, physical presence
is no longer a prerequisite to doing business in a given market (especially in
the digital economy) where intangible product is replicable at little or no cost.
In other words, the confluence of two digital forces may dramatically reshape

16
 tomorrow’s workplace; leading to a sharp reduction in the traditional employer-
employee relationship as identified below:
I) New platform, allow economic activity to be organized in ways that shift much
of what was traditionally accomplished by full-time workers within an
organization to a crowd of individual entrepreneurs and on-demand workers.
II) Emerging economy that increasingly relies on short term freelance relationships
rather than on full-time employment.
III) Artificial Intelligence and robotics-enabled technologies are getting increasingly
better at the cognitive and physical tasks that comprise much of today’s work:
presaging the automation of complex human activities and disrupting a range
of occupation.

Therefore, the confluence of these factors may lead to a labor market in which full-
time jobs may be broken-up into tasks and projects. In other words, this was making
it easier to substitute capital in the form automation technologies for human labor and
talent. Yet, despite the importance of large firms in driving economic growth the
advent of digital platform has changed the scenario specifically, digital platform is
replacing the brick-and-mortar malls; connecting shoppers with different brand stores;
creating efficiencies for brands as well as generating revenue for platform owners.
Again, some platform expands the supply of labor by increasing opportunities for new
(flexible types of work that complement traditional forms of employment in the gig
economy). However, the additional income may reduce income fluctuations for
secondary earners. Yet, the flexibility inherent in platform work also enables more
women to participate in the labor force. Although flexibility is a benefit in some cases;
this raise concerns around income instability as well as protections connected with
standard employer employee relationships (such as person plans, health insurance
and paid leave).

Notably, the rise of digital platform firm (existing principally in the cloud and
generating income from external capital base) marks a shift in the potential nature of
firms. In fact, most regulations are not yet adapted to these changes. Thus, platform
firms often operate in regulatory gray areas. Yet, minimum standards of quality,

17
prudence and safety (as well as other policy goals) should be upheld by digital
businesses.

Essentially, the rise of platform marketplaces allows the effects of technology to reach
more people more quickly than ever before. Here, individuals and firms need only a
broadband connection to trade goods and services on online platform. Clearly, this
scale without mass brings economic opportunity to millions of people (beyond their
geographical residency) as well as experiencing changing demand for skills. Basically,
some of the observed changes are numerous as highlighted below:

(A) With technology blurring the boundaries of the firm, platform companies often
generate value by creating a network effect that connects customers, produces
while facilitating interactions in a multisided model.
(B) While the demand and for less advanced skills that can be replaced by
technology is declining; the demand for advanced cognitive skills, socio-
behavioral skills as well as skill combinations associated with greater
adaptability is rising.
(C) The idea of robots replacing workers is striking a nerve and thus, the threat to
jobs from technology may be exaggerated. Notably several forces are
increasing the demand for industrial products and hence the demand for labor
in the industrial sector.
(D) In some developing countries, informality has remained remarkably stable
despite economic growth or the changing hg nature of work.

Practically, online outsourcing or freelancing platforms match firms and workers to

perform work online. Essentially, they can reduce contracting costs and the time it
takes to match employers are employees. With interest and innovations in monitoring
and feedback systems, online labor markets are becoming global. Notably, there online
job platforms increase the pool of talent for firms (especially for smaller enterprises)
and provides the opportunity to monetize skills that may not be in sufficient demand
in local economy. In other words, digital labor market networks make labor markets
more efficient by connecting a larger pool of individuals and firms at lower cost.
Specifically, platforms like. Indee.com, Monster.com and elempleo.com are
international platforms that aggregate job vacancies from different sources and allows
18
firms to post job openings. On the other hand, workers apply for jobs and post
resumes in the same platforms as designed and posted.

Similarly, online job boards, social media and matching platforms can improve labor
market efficiency especially in the informal sector (where information failures are
large). Notably, online job matching is cheaper and faster than traditional methods.
In fact, online tools and platforms has the capacity to address many labor market
frictions even though their potential remains unrealized. Again, digital labor networks
can bring women and new entrants into the labor market (such as in white-collar
occupations) and thereby allowing people to work on different schedules or from
different locations.

Although digital labor networks can generate new opportunities for employment and
earnings; these are some associated risks. Perhaps, a major risk is related to the speed
of labor market changer and destruction of jobs. Here, nonstandard forms of work
and shorter job tenures are likely to become more common among youth. However
large-scale automation can also accelerate job destruction as well as automation of
logistics and processing digitalization and self-service. Eventually, these changes are
good for aggregate productivity but can create challenges for individuals in the
transition to new jobs. And beyond skill up-grading, the main challenge is to ensure
that labor regulations facilitate and do not impede those transitions while social
protection systems support workers when they are between jobs or not working
regularly. Yet, another risk relates to the changing nature of work and the quality of
internet enabled jobs such as micro work or jobs in the on-demand economy. Basically,
these new forms of work provide workers and firms with flexibility as well as improve
efficiency in the use of resources. However, it may also come with a possible erosion
of workers bargaining power and lack of benefits such as unemployment, health
insurance or severance pay perhaps, the biggest risk from technological change is that
of widening income inequality. Even though technologies are becoming widespread,
the economic pay off, are not. Here, the poor almost exclusively use only mobile
phones not connected to the internet. And even where they had access to the internet;
some may lack the skills to use them productively.

19
Consequently, the import of digital technologies on jobs depends on the type of tasks
and how technology either complements or substitutes workers in those tasks.
Practically, a job comprises many tasks and each characterized by the skills most used
to perform it (such as cognitive, socio emotional or manual) as well as by how
amenable it is to automation or codification. Therefore, the fundamental question is
to what extent are different occupation and countries labor markets affected by skill-
biased and labor-saving digital technologies?

Critically, beyond foundational cognitive skills (such as basic literacy and math) a well-
educated worker in a modern (digital) economy needs to develop the following
working skills as identified below:

(I) NON-ROUTINE AND HIGHER ORDER COGNITIVE SKILLS: This is the

ability to understand complex ideas deal with complex information processing
adapt effectively to the work environment, learn from experience, engage in
various forms of reasoning as well as overcoming obstacles by critical thought.
Practically, this cluster include skills such as unstructured problem solving,
critical thinking, learning and reasoning.
(II) TECHNICAL SKILLS PLUS INFORMATION AND COMMUNICATION
TECHNOLOGY (ICT) SKILLS essentially, technical skills are those abilities
needed to carry out one’s job. These include the knowledge to operate a
machine for a worker at a factory or the knowledge to work with a software for
a person at a bank. Technically, ICT skills refer to the effective application of
ICT systems and devices ranging from ICT socialist (who have the ability to
develop operate and maintains ICT system) to ICT users (who are competent
users of the mainstream tools needed in their working place such as emails,
excel, outlook, power point, word, etc.).
(III) NON-ROUTINE INTERPERSONAL AND SOCLOEMOTIONAL SKILLS:
Often, these are called soft or noncognitive skills which encompass a broad
range of malleable skills, behaviors attitudes and personality traits that enable
individuals to navigate interpersonal and social situations effectively.
Operationally, these include grit or the perseverance to finish a job or achieve

20
 a long-term goal working in teams, punctuality organization, commitment,
creativity as well as honesty.

4.0 AFRICAN GIG SECTOR: PERFORMANCE AND CHALLENGES:

Indeed, jobs are crucial for individual wellbeing as they provide a livelihood and a
sense of dignity. Again, they are crucial for collective wellbeing and economic growth.
However, over the past years, technology has fundamentally shifted traditional work

21
patterns by creating new ways in which work is contracted, performed, managed,
scheduled and remunerated. Consequently, new business models (known as digital
platform firms) are allowing the effects of technology to reach more people more
quickly and hence bringing economic opportunity to millions of people who do not live
in industrialized countries or even industrial areas.

In other words, technologically, they are provided access to broad band with digital
device (World Bank, 2019, 2023).

Essentially, digital labor platforms are anticipated to play a role in the process of
structural transformation by way of triggering organizational and occupational
transformation. That is by enhancing labor productivity and formalization in service
sectors (Nayyar, et.al 2021, Eurobound, 2020).

Conceptually, the term gig can be understood as a one-off job for which a worker is
paid for a particular task or for a defined period. Here, the type of gig work considered
is that mediated through interest platforms in which the worker is not an employee of
the enterprise that operates the platform. Rather, the platform acts as an intermediary
between the gig worker and the person or business that needs the work done.
Specifically, the paid tasks (or gigs) could be food delivery, care work, photo tagging,
data entry, translation, design, software development, etc.

Technologically, the supply (gig worker) and the demand (business or person seeking
for job done) are matched through either a mobile app or website. Here, the platform
provides a participative infrastructure for such interactions that includes governance
structures and rules for the work to be carried out (which is enabled by an algorithm).

Essentially, a gig worker is usually paid on a project, piece rate or hourly basis and
basically there are various types of platform-based gig jobs as identified below:

(A) LOCATION BASED GIG JOBS: Digital platform allocate work that is tangible
and delivered to a client in a physical location such as transport, delivery,
domestic care and home services.

22
(B) ONLINE GIG JOBS: This include tasks or work assignments such as image
tagging, data entry, website design or software development that are
performed and delivered online by workers.
(C) ONLINE FREE LANCING: Often called e-lancing tends to involve larger
projects that are performed over longer times; which typically includes complex
tasks targeting more intermediate or high-skilled workers such as software
development graphic design and digital marketing.
(D) MICROWORK: This involves projects and tasks that are broken down into
small subtasks that can be completed in seconds or minutes by remote workers
through online platforms. Practically micro workers are usually paid small
amounts of money for each completed tasks which can often be performed with
basic numeracy and literary skills. Notably, these tasks include image tagging,
text transcription and data entry.

Comparatively, micro work has lower barriers to entry them online freelancing and
thereby making it on attractive income generating opportunity for unemployed and
underemployed individuals with few or no specialized skills. Table 4.1 shows task
classifications of different online gig works similarly, table 4.2 shows the overview of
operational platforms found in African region.

TABLE 4.1 GENERAL ONLINE GIG WORKS: TASKS CLASSIFICATIONS

23
S/N. TASK CATEGORY TASKS TASK
DESCRIPTION.
(1) BUSINESS AND (A) MANAGEMENT CONSULTING MANAGEMENT AND
PROFESSIONAL ORGANIZATION
MANAGEMENT ANALYSTS
(B) PROFESSIONAL ACCOUNTING SUCH AS ACCOUNTANT
PREPARING AND ORGANIZING
FINANCIAL STATEMENTS FOR AN
ORGANIZATION
(C) HUMAN RESOURCE MANAGEMENT PERSONNEL AND
CAREERS
PROFESSIONALS
(D) PROTECT MANAGEMENT MANAGEMENT AND
ORGANIZATIONS
ANALYST

(E) LAWYER LAWYERS

(F) TEACHING, TRAINING AND TUTORING OFFICE TEACHING

PROFESSIONALS

(G) QUANTITATIVE ANALYSTS MATHEMATICIANS

ACTUARIES AND
STATISTICIANS
ADVERTISING AND
MARKET
(H) MARKETING STRATEGY PROFESSIONALS
(2) BUSINESS AND (A) ACCOUNTING SUPPORT AND ACCOUNTING
PROFESSIONAL BOOKKEEPING ASSOCIATE
SUPPORT PROFESSIONALS
ILLEGAL AND
(B) PARALEGAL SERVICES
RELATED
ASSOCIATE
PROFESSIONALS

(C) MARKET AND CUSTOMER RESEARCH SURVEY AND

MARKET RESEARCH
INTERVIEWERS

(D) LEAD GENERATION INFORMATION

AND

24
 COMMUNICATION
TECHNOLOGY
USER SUPPORT
TECHNICIANS

WEB TECHNICIANS
(E) DISPLAY ADVERTISING

(F) EMAIL AND MARKETING AUTOMATION INFORMATION

AND
COMMUNICATION
TECHNOLOGY
OPERATIONS
TECHNICIANS
(3) DATA ENTRY (A) COMPLETING SURVEYS GENERAL OFFICE
ADMINISTRATIVE CLERKS
AND CLERICAL
(B) DATA ENTRY AND CLEANING DATA ENTRY
TASKS
CLERKS

(C) CUSTOMER SUPPORT AND SERVICE CONTACT CENTER

INFORMATION

(D) VIRTUAL ASSISTANT SECRETARIES

(E) DATABASE ADMINISTRATION COMPUTER

NETWORK AND
SYSTEMS
TECHNICIANS

(4) DESIGN (A) ARCHITECTURE BUILDING

MULTIMEDIA AND ARCHITECTS
CREATIVE WORK (B) ART AND ILLUSTRATION VISUAL ARTISTS

(C) GRAPHIC DESIGN: LOGO DESIGN OR GRAPHIC AND

UI/UX DESIGN OR OTHER MULTIMEDIA MULTIMEDIA
DESIGNS DESIGNERS

(D) PRODUCT DESIGN PRODUCT AND

GARMENT
DESIGNERS

(E) VIDEO AND ANIMATION

25
 GRAPHIC AND
MULTIMEDIA
(F) VOICE TALENT DESIGNERS

(G) VOICE OVER(READING ALOUD ACTORS

SENTENCES)
ACTORS
(H) AUDIO PRODUCTION

BROADCASTING
AND AUDIO
VISUAL
TECHNICIANS
(5) SALES AND (A) INFLUENCER MARKETING SUCH AS ARTISTIC,
MARKETING ADVERTISING A PRODUCT ON YOUR CULTURAL AND
SOCIAL MEDIA ACCOUNT. COUNTRY
ASSOCIATE
PROFESSIONALS
(B) SEO, SEM AND SOCIAL MEDIA ADVERTISING AND
MARKETING SUCH AS MONITORING, MARKETING
SOCIAL, MEDIA PLATFORMS, WRITING PROFESSIONALS
SOCIAL MEDIA POSTS
(C) BRAND IDENTITY AND STRATEGY ADVERTISING AND
MARKETING
PROFESSIONALS
(D) PUBLIC RELATIONS PUBLIC RELATIONS
PROFESSIONALS
(E) COPYWRITING (REVIEW BLUG POSTS OR ADVERTISING AND
OTHER WRITING). MARKETING
PROFESSIONALS
(F) MARKETING CONSULTING ADVERTISING AND
MARKETING
PROFESSIONALS.
(6) IT SOFTWARE (A) DESKTOP SOFTWARE DEVELOPMENT SOFTWARE
DEVELOPMENT AND DEVELOPER
TECHNOLOGY
(B) GAME DEVELOPMENT WEB AND
MULTIMEDIA
DEVELOPERS
(C) MACHINE LEARNING APPLICATIONS
PROGRAMMERS

26
 (D) NETWORK AND SYSTEM SYSTEM
ADMINISTRATION ADMINISTRATORS
(E) PRODUCT MANAGEMENT INFORMATION
AND
COMMUNICATION
TECHNOLOGY
OPERATIONS
TECHNICIANS
(F) SCRIPTS AND UTILITIES APPLICATIONS
PROGRAMMERS
(G) TESTING APPS, WEBSITES AND SYSTEM ANALYSTS
SOFTWARES
(H) WEBSITE AND APP DEVELOPMENT WEB AND
MULTIMEDIA
DEVELOPMENT
(I) E-COMMERCE DEVELOPMENT INFORMATION
AND
COMMUNICATIONS
TECHNOLOGY
OPERATIONS
TECHNICIANS
(J) WEB SCRAPING/GATHERING DATA FROM APPLICATIONS
WEBSITES PROGRAMMERS
(7) WRITING AND (A) ACADEMIC WRITING AND RESEARCH AUTHORS AND
TRANSLATION RELATED WRITERS
(B) ARTICLE AND BLOG BWRITING AUTHORS AND
RELATED WRITERS
(C) CREATIVE WRITING AUTHORS AND
RELATED WRITERS
(D) EDITING AND PROOFREADING GENERAL OFFICE
CLERKS
(E) GRANT WRITING AUTHORS AND
RELATED WRITERS
` (F) OTHER WRITING AUTHORS AND
RELATED WRITERS
(G) RESUMES AND COVER LETTERS AUTHORS AND
RELATED WRITERS
(H) TECHNICAL WRITING AUTHORS AND
RELATED WRITERS
(I) TRANSLATION TRANSLATORS
INTERPRETERS

27
 AND OTHER
LINGUISTICS
(8) ONLINE (A) VOICE TRANSCRIPTION DATA ENTRY
MICROTASKS CLERKS
(B) IMAGE TAGGING DATA ENTRY
CLERKS
(C) IMAGE TRANSCRIPTION DATA ENTRY
CLERKS
(D) GEOLOCATION TAGGING DATA ENTRY
CLERKS
(E) OBJECT CLASSIFICATION DATA ENTRY
CLERKS
(F) TEXT ANNOTATION DATA ENTRY
CLERKS

28
 TABLE 4.2 AFRICAN GIG SECTOR: OPERATIONAL PLATFORMS

S/N PLATFORM LOCATION DESCRIPTION

(1) ASUQU NIGERIA This is an online freelancing platform
aiming to connect online free lance
professionals offering creative and
professional services with customers in
Africa.
(2) BOOKING AFRICA NIGERIA This is a gig work platform featuring
both location-based and web-based
tasks. Currently active in Nigeria, Kenya
and South Africa
(3) ECHAREFA EGYPT THIS IS AN ONLINE FREELANCING
PLATFORM CONNECTING ONLINE GIG
WORKERS AND CLIENTS IN THE
MIDDLE EAST and North Africa region
(4) FINDWORKA NIGERIA This is an online freelancing platform
connecting online gig workers with
client’s overtime, it has also evolved into
a recruitment and placement company
that manages a pool of qualified
workers
(5) JOLANCER NIGERIA This is a dedicated market place for
skilled African freelancers to register
their profiles; post the services offered
and did for projects in their line of
expertise. Operationally, the platform
has evolved beyond Nigeria and now
being used by workers and clients in
other countries.
(6) M4JAM SOUTH AFRICA This is a gig technology company
enabling a variety of clients such as
startups, MIMEs and large enterprises,
to connect with millions of gig workers,
on this platform, the tasks featured are
predominantly location based but also
have tasks that can be remotely
conducted such as online surveys.

29
(7) ONE SHA KENYA This is a local platform for online
freelancing. Operationally, the platform
aims to enable African freelancers to
access work opportunities from
anywhere in the worlds.
(8) WOWZI KENYA This is an Online Gig Work Platform
Specialized in Influencer Marketing. It Is
Active in Several Other African
Countries Such as Ghana Nigeria, South
Africa, Tanzania and Uganda.
(9) MICROWORKERS GLOBAL This is a global micro work platform for
online freelancing activities.
(10) TERRA WORK NIGERIA This is a local platform (gig) for online
freelancing activities.
(11) PEPEWORK NIGERIA This is a freelance platform to reduce
unemployment Burden in Africa.
(12) UPWORK GLOBAL This is a general market place platform
for all categories of online workers.
(13) KENYA AJIRA DIGITAL KENYA This is government initiative driven by
PROGRAM the ministry of ICT innovations and
youth affairs to empower millions of
young people to access digital job
opportunities. Basically, the main
objectives are to raise the profile of
digital work, promote a mentorship and
collaborative learning approach to
finding digital work; providing access to
digital work as well as promoting Kenya
as a distinction for online workers.
(14) CLICK-ON KADUNA PILOT NIGERIA World Bank’s (Digital Jobs in Nigeria)
pilot project team adopted various
strategically to help vulnerable youth in
conflict-affected area) to leverage
employment opportunities in a digital
economy. Basically, the pilot provided
training for employed youths in Kaduna
State to pursue digital jobs including
online freelancing and digital
entrepreneurship.
(15) KENYA DIGITAL FREELANCING KENYA This is a platform that prepares
CURRICULUM unemployed or underemployed young

30
 persons to entry level middle skill jobs
that feature either high scarcity or high
turnover. Also, there is a pilot project or
online freelancing that focused on
transcription and virtual assistant skills
with a target of large number of youths
to be reached.
(16) SKILLS FOR VIRTUAL GIGS KENYA This is collaborated pilot research
initiative that focused on equipping
youth with the skills needed to succeed
in virtual gigs as well as leveraging their
new skills for future professional
opportunities.
(17) STABLE CON MICROPAYMENTS KENYA This is a platform that accelerates
FOR DIGITAL WORKERS financial inclusion and de-risking the
adoption of new technological
innovations by conducting real world
pilots. Basically, the pilot was testing
whether digital stable coins as crypto
currency type of mobile wallets could
use frictions and reduce in cross-border
payments for unemployed and
underemployed youth completing micro
works.

31
Operationally, these online gig work platforms usually rely on a combination of fees
and subscription plans to generate revenue. This revenue usually comes from the fees
charged on the demand side or supply side or both. It may also come from subscription
plans that grant additional features to the online gig workers or clients who subscribed
to them. Notably, these plans can attract more workers and clients. Basically, the
commissions charged to the workers generally range from a minimum flat fee to
twenty percent. However global platforms tend to charge progressive commissions
based on the lifetime earnings of the worker as well as additional fees like transaction
or withdrawal fees (associated with certain payment mechanisms) and optional fees.
Essentially, the optional fees can enable freelancers to access special features such as
the ability to promote their offer or bid featured offers, or the ability to pass tests on
the platform to prove competencies. On the client side, the service varies and the
charged fee is usually less than five percent of the transaction value. Again, the
subscription plan offered by some platform enhances the visibility of subscribed
workers on the platform; provides them with more information about projects that are
biddable as well as allowing them to keep information on their earnings privately.

For the purpose of digital work payments (online services) STABLECOINS are form of
crypto currency which remains stable in value. Essentially, these coin work for peer-
to-peer transactions, cross-border payments and savings. In fact, they do not require
an intermediary for transactions Rather, they can be linked to smart contracts which
are self-executing contracts that use block chain technology to carry out agreements
given that operational term is met without the need for a human intermediary. In
other words, these contracts automatically make payments related to completing a
job such as micro work task. Specifically, these tasks might involve image labeling,
receipt, transcription and product categorization that contributes to artificial
intelligence training (AI) data for private companies.

Consequently, the participants or micro workers can receive stable coins crypto
currency and cash-out earnings using M-PESA. In other words, on task completion,
gig workers can decide whether to keep their money in a mobile crypto wallet (Volora)
or off-ramp their earnings to their M-PESA accounts. Indeed, the adoption of stable
32
coins payment mechanism has the capacity to reduce the cost and frictions of sending
and receiving cross-border micropayments as well as increasing take-home earning
potential. Therefore, in order to link program beneficiaries to international online gig
opportunities, teams (facilitators) can explore direct partnership agreements with
platforms. Essentially, these agreements can be structured to include platforms
involvement in project outreach and curriculum design as well as collecting beneficiary
data to monitor projects impact.

Again, operational platforms might provide project beneficiaries with preferential

profiles to increase their visibility. Even though the online platforms may not directly
give work opportunities to program beneficiaries; they are often able to identify
prospective beneficiaries of such partnerships on their platforms (via badges and
certificates of completion). Essentially, these can give the beneficiaries an edge during
their bids for online jobs. In fact, this action is critical for the young (first time) online
gig workers who may not have work history on the online gig job platforms (as
applicable to most African workers).

Indeed, the surprising size and diversity of online labor in Africa suggest that it could
become a viable sector for future-oriented job creation across the continent in the
coming decades. However, if the online labor (gig sector) is to become a driver of
African country’s export-led growth strategy; the two foundational pillars are literacy
levels and widespread access to the internet. Unfortunately, on both accounts, most
African countries are far behind. In fact, without a laptop or reliable internet
connection or basic communication skills, online work or gig works or micro works
remains out of reach for most African youths (population). However, these two pillars
(skills and connectivity) are so important and foundational for development. Thus,
most African governments are working hard to enhance them. And with the
emergence of low-earth satellite internet connections; real breakthrough progress
seems possible.

Operationally, there are growing pains within the online labor industry that need to be
tackled from various sides as appropriate:

33
(A) Even though platforms have the strongest incentive to regulate the supply side
of online labor, most participants reports that it is imperative to buy accounts
given that some platforms have regional restrictions as well as client having
biases against African online workers. Again, several participants have
experienced fraudulent sellers such as cases of buying an account only to found
that the login password was changed after concluded transactions. Regrettably,
much of these illegalities takes place on ghostwriting platforms which facilitates
transactions that cannot be held accountable for their treatment of online (gig)
workers in Africa.
(B) Similarly, on the demand side of online labor, explicit discrimination exists in
terms of not accessing certain popular platforms from African countries.
Furthermore, on certain platforms, online workers with accounts registered in
non-native English-speaking countries often have difficulty in receiving their
first platform tasks. Specifically, many participants have warned of some
platforms with a reputation for fraudulent requests such as where completed
works are often not paid for.
(C) Again, in terms of intermediation, some participants have lamented that
arduously built-up reputation via positive ratings are platform-bound which
implies that they are not transferable to other platforms which might be lost if
a given platform ceases to exist. Therefore, labor arbitrage can pit online
workers (account holders) against one another in a virtual bidding race to the
bottom as well as harsh timelines (such as work posted late at night that needs
to be completed by morning) or disturbing tasks (such as reviewing graphic
footage) can cause workers’ undue strain.

Unfortunately, of the many young job seekers in Africa; only a small minority
possesses the skills needed to be competitive or even to get started as online (gig)
workers. Perhaps, this observed situation is clearly worse in some African countries
where education levels are very low. In other word, the main banner for African
counties to complete with other developed or developing countries, is that African skill
levels are (on average) not high enough to compete. Therefore, whether online labor

34
can spur a period of rapid growth in Africa compared to emerging economies will
depend on several critical factors as follows:

(1) Need of lowering entry barriers to the sector. That is, a critical mass of young
Africans needs to be trained to enter digital services. In other words, the sector
cannot be only available to tertiary educated youths.
(2) Need to secure global demand. That is the critical mass of global demand (even
though steadily growing) should be made accessible to Africans.
(3) Need to stimulate upward mobility within the online labor subsector so as to
engage in more complex and creative tasks.
(4) Need to have elite services so that African innovation can be generated at the
highest rungs of the value ladder.
(5) And need to address gender equity if the sector is to take off as planned.

Notably, across various online platforms, micro, small and median enterprises drive
the demand for gig workers. In fact, not only are smaller businesses more likely to
hire gig workers, they usually outsource a large share of work through platform than
larger firms. Again, not only firms but governments generate local demand.

However, regarding tasks, firms hiring through regional platforms are more likely to
outsource information technology, writing, business and sales tasks than those hiring
through global platforms and by looking at historical trends overtime, the demand for
clerical and data entry tasks have very much increased compared to other types of
tasks (World Bank, 2023). Yet, the growing adoption of artificial intelligence (AI) in
different industries (sectors) is increasing the demand for micro (gig) workers.
Technically, artificial intelligence producers create machine learning algorithms to
develop applications ranging from chat bots and hands-free vocal assistants to
automated medical image technologies, self-driving vehicles and drones. Indeed,
developing these algorithms requires the preparation of quality big data.
Consequently, it generates demand for micro tasks such as TAGGING PHOTOGRAPHS,
SORTING ITEMS IN A LIST, ADDING LABELS, PROVIDING SAMPLE AUDIOS, A1
PREDICTIONS VERIFICAITON, ETC.

35
Basically, these tasks could be confirming the correctness of image classifications or
checking that a virtual assistant understand users communications as appropriate
(Tubaro and Casilli, 2019). Again, developments in big team are playing important role
in creating new types of micro tasks. In other words, as companies work to create
more-accurate VOIP systems; nuances such as country specific accents are very
critical in creating a trend toward inclusive tech. This has therefore created demand
for simple micro tasks such as READING, TRANSLATING or TRANSCRIBING a sentence
in a particular language which is clearly an important avenue of regional platforms
demand. Appendix A shows the various productive tools of artificial intelligence
applications.

Perhaps, access to a wide range of talent may be the key reason that firms turn to
platform networks. In other words, in a knowledge-based economy, companies usually
create value from ideas, innovation, research and expertise; and thus, finding the right
talent is crucial. Yet, firms often find it challenging to nurture and keep the best talent
in highly specialized and professional services. Therefore, digital platforms can
potentially bridge the gap by eliminating several geographical barriers. Specifically,
online freelancing platforms can allow firms to access workers with diverse skill sets,
cultural backgrounds and work histories. Certainly, this will act as an important enabler
for knowledge exchange, innovation and peer learning.

Here, instead of seeing knowledge flows across organizations as a threat; firms now
make strategic use of it. Clearly, this allows them to accumulate knowledge, innovate
and adopt faster to environmental challenges (Manika, et.al. 2015; Corporal, et.al
2017).

Operationally, gig workers offer flexibility to firms which may take various forms:

(A) FUNCTIONAL FLEXIBILITY: That is, to allocate different types of tasks across
the available workforce.
(B) NUMERICAL FLEXIBILITY: That is, to employ varying numbers of workers to
meet the fluctuating demand for labor.
(C) FINANCIAL FLEXIBILITY: That is, to allow businesses to easily adjust wages.

36
Indeed, the short-term assignments (while not providing job security for the gig
workers) allow companies the flexibility to easily meet the changing demand for labor.
Again, the majority of firms hire gig workers once a month or less which indicates that
gig workers may be hired for ad hoc tasks (ILO, 2021).

Financially, given the growing supply of gig workers using online platforms, the pay
rates vary and thus allowing firms to choose less or more expensive services. However,
it is important regarding how much firms pay as well as how they pay. In other words,
many firms are hiring gig workers because online platforms provide more flexible
costing options such as ability to pay per task, per hour of work or per image tagged
than traditional employment. Even where it was more expensive to hire through online
platforms; some firms have argued that the extra cost was offset by the value
platforms. Yet, regional platforms seem to be most attractive to firms that are looking
for gig workers with similar cultural backgrounds or in the same time zone. This implies
that some of the demand for online gig work is usually driven locally. Essentially, this
might be as important engine for development. Here, platformization may serve as a
vehicle to pull informal workers into formal or semiformal work arrangements.

And yet, other ways in which platforms may have contributed to African development
include reducing the time required to hire a person for a task or project because of
the use of sophisticated algorithms. Again, it reduces the time spent searching by
individuals between jobs as well as matching tasks with the right talent. Therefore,
gig works will improve labor productivity and serve as a tool for knowledge creation
and innovation in Africa.

Empirically, table 4.3 shows the online labor index 2020 (OLI, 2020) as an economic
indicator that provides an online gig economy which measures the supply of online
freelance labor across African countries (Stephany, et.al, 2021; Kassi, et.al. 2018). As
an experimental economic indicator that approximates the conventional labour market
statistics, (online labour index (OLI) measures the utilization of online labour across
countries and occupations by tracking the number of projects and tasks posted on
major online gig platforms in near-real time so as to provide a solid evidence base for
future policy and research. As presented here, the online labour platforms are
platforms through which buyers and sellers of labor or services transact fully digitally.
37
In other words, we require that the worker and employer are matched digitally.
Similarly, the payment is conducted digitally via the platform and the result of the
work delivered digitally. Basically, the index is based on tracking all projects and tasks
posted on a sample of platforms (using API access and web scraping).

However, occupational classification is a difficult process that can be subjected to

criticisms of its reliability. Nevertheless, it is evident that some operational
classification is required to facilitate comparisons across countries, companies, time or
online labour market platforms. Thus, the classifications are outlined below as follows:

A: professional services

A1 = accounting; A2 = consulting; A3 = financial planning; A4 = legal services A5 =

human resources.

TABLE 4.3 ONLINE LABOUR INDEX: AFRICAN COUNTRIES

38
S/N. COUNTRIES OCCUPATION SHARE INDEX
1. ALGERIA CREATIVE AND MULTIMEDIA 0.56
2. ANGOLA SOFTWARE DEVELOPMENT AND TECHNOLOGY 0.84
3. BENIN CLERICAL AND DATA ENTRY 0.48
4. BOTSWANA CREATIVE AND MULTIMEDIA 0.50
5. BURKINA FASO WRITING AND TRANSLATION 0.54
6. BURUNDI CREATIVE AND MULTIMEDIA 0.99
7. CAMEROON SOFTWARE DEVELOPMENT AND TECHNOLOGY 0.53
8. CAPEVERDE SOFTWARE DEVELOPMENT AND TECHNOLOGY 0.82
9. CENTRAL AFRICA REPUBLIC
10. CHAD SOFTWARE DEVELOPMENT AND TECHNOLOGY 0.91
11. COMOROS
12. CONGO (DEMO) SOFTWARE DEVELOPMENT AND TECHNOLOGY 0.65
13. CONGO (REP)
14. COTE DIVOIRE SOFTWARE DEVELOPMENT AND TECHNOLOGY 0.61
15. DJIBOUTI WRING AND TRANSLATION 0.85
16. EGYPT CREATIVE AND MULTIMEDIA 0.52
17. EQUATORIAL GUINEA
18. ERITREA WRITING AND TRANSLATION 0.44
19. ESWANTINI
20. ETHIOPIA SOFTWARE DEVELOPMENT AND TECHNOLOGY 0.48
21. GABON CREATIVE AND MULTIMEDIA 0.89
22. GAMBIA SALES AND MARKETING SUPPORT 0.58
23. GHANA CREATIVE AND MULTIMEDIA 0.36
24. GUINEA SALES AND MARKETING SUPPORT 1.00
25. GUINEA BISSAU
26. KENYA WRITING AND TRANSLATION .0.69
27. LESOTHO CREATIVE AND MULTIMEDIA 0.98
28. LIBERIA WRITING AND TRANSLATION 0.80
29. LIBYA CREATIVE AND MULTIMEDIA 0.78
30. MADAGASCAR CREATIVE ND MULTIMEDIA 0.35

39
31. MALAWI SOFTWARE DEVELOPMENT TECHNOLOGY 0.80
32. MALI CREATIVE AND MULTIMEDIA 0.98
33. MAURITANIA WRITING AND TRANSLATION 0.37
34. MAURITIUS WRITING AND TRANSLATION 0.82
35. MOROCCO CREATIVE AND MULTIMEDIA 0.41
36. MOZAMBIQUE SOFTWARE DEVELOPMENT /TECHNOLOGY 0.52
37. NAMIBIA CREATIVE AND MULTIMEDIA 0.28
38. NIGER SOFTWARE DEVELOPMENT AND TECHNOLOGY 0.84
39. NIGERIA WRITING AND TRANSLATION 0.26
40. RWANDA CREATIVE AND MULTIMEDIA 0.38
41. SAO TOME AND PRINCIPE
42. SENEGAL CREATIVE AND MULTIMEDIA 0.94
43. SEYCHELLES CREATIVE AND MULTIMEDIA 0.51
44. SIERRA LEONE SOFTWARE DEVELOPMENT AND TECHNOLOGY 0.94
45. SOMALIA PROFESSIONAL SERVICES 0.45
46. SOUTH AFRICA CREATIVE AND MULTIMEDIA 0.34
47. SOUTH SUDAN SOFTWARE DEVELOPMENT AND TECHNOLOGY 0.76
48. SUDAN SOFTWARE DEVELOPMENT / TECHNOLOGY 0.65
49. TANZANIA SALES AND MARKETING SUPPORT 0.30
50. TOGO SOFTWARE DEVELOPMENT/TECHNOLOGY 0.96
51. TUNISIA CREATIVE AND MULTIMEDIA 0.40
52. UGANDA SOFTWARE TECHNOLOGY DEVELOPMENT 0.22
53. ZAMBIA CREATIVE AND MULTIMEDIA 0.85
54. ZIMBABWE SOFTWARE TECHNOLOGY7 DEVELOPMENT 0.757

B: CLERICAL AND DATA ENTRY

40
B1 = PROJECT MANAGEMENT; B2 = CUSTOME SERVICES; B3 = DATA ENTRY

C: CREATIVE AND MULTIMEDIA

C1 = ANIMATION; C2 = ARCHITECTURE; C3 = AUDIO; C4 = LOGO DESIGN; C5 =

PHOTOGRAPHY; C6 = PRESENTATIONS; C7 = VOICE ACTING

D: SALES AND MARKETING SUPPORT

D1 = AD POSTING; D2 = LEAD GENERATION D3 = SEARCH ENGINE OPTIMIZATION

D4 = TELEMARKETING.

E: SOFTWARE DEVELOPMENT AND TECHNOLOGY

E1 = DATA SCIENCE; E2 = GAME DEVELOPMENT; E3 = MOBILE DEVELOPMENT; E4

= QA AND TESTING; E5 = SERVER MAINTENANCE; E6 = WEB DEVELOPMENT; E7 =
WEB SCRAPING

E: WRITING AND TRANSLATION

F1 = ACADEMIC WRITING; F2 = ARTICLE WRITING; F3 = COPY WRITING; F4 =

CREATIVE WRITING; F5 = TECHNICAL WRITING; F6 = TRANSLATION

Clearly, the above table revealed that the main continental supply is in the software
development and technology skills as well as creative and multimedia works, other
areas of continental supply include clerical and data entry as well as writing and
translation. Perhaps, the relative prominence of software development and technology
supplies in the online labor market can be explained by the relative long history of the
outsourcing and off shoring of information technology services (ICT) as well as the
standardized processes associated with it. However, the use of online labor services
for repetitive clerical tasks such as data entry similarly follows on the footsteps of

41
conventional business process outsourcing (BPO) practices. But here, the work is being
sent directly to individual online workers rather than to BPO firms with conventional
offices and employees. Yet as observed, the relatively small number of professional
services being contracted on the gig platforms could be explained by the fact that
those services often require a high level of trust and taut communication that may not
be as easily achieved through online communication. Again, they may require
familiarity with the client’s local institutional environment that distant online service
providers may not possess. In fact, unlike other tasks, professional tasks may not be
as easy codified in rule-based proceedings.

Indeed, as presented, the OLIK will be a useful tool for policy markets, researchers
and investors trying to make sense of how the African platform economy is developing
as well as where its effects are being felt.

42
5.0 AFRICAN GIG SECTOR: POLICY OPTIONS AND PROSPECTS

Clearly, in addition to acting as a market place to hire gig workers, online labor
platforms have started playing as active role in recruiting and staffing online workers
for medium to long term projects for client companies. In fact, some real sector firms
have hired gig workers for longer than three months in recent times. Here, platforms
firms play a project management role in which they vet freelancers for the job, ensure
quality control and manage client-freelancer relationship. Notably, the main reason for
the observed shift is that the flexibility and speed offered by platform in acting as
staffing agencies for exceed those of conventional staffing and sourcing channels. Yet,
some platforms also help manage the projects themselves (which is a related but
different business model). Therefore, we expect the demand for gig work to continue
to rise in the future. Even though demand was generated largely by micro, small and
medium enterprises in developed countries; majority firms in the developing world
(such as Africa) have started to use digital labor platforms recently. Essentially,
awareness of the local context is a necessary prerequisite for some tasks outsourced
through online platforms. Therefore, rising demand in developing countries (such as
Africa) implies that more people will benefit from work opportunities generated
through online platforms. Specifically, the growing demand for transparency in
government (as well as provision of digital services and information by government)
can be a source of demand for digital and gig work for African growths. In other
words, digitalization of government records can offer micro work opportunities to
relatively low-skilled people from African countries. However, the role of government
in contributory and noncontributory social insurance (S1) programs and other forms
of social protection for gig workers such as cases of private innovations and market
making approaches remain critical.

Basically, social insurance (SI) systems seek to smooth consumption and prevent
poverty through two instruments: risk-pooling mechanisms and saving arrangements
(Winker, et.al. 2017). Here, risk pooling mechanisms allow individuals and employers
to contribute to collective fund to finance transfers to those who face a negative shock.
On the other hand, saving arrangement enable individuals to save money in individual
savings account to pay their expenses during periods of negative shock. Notably, the

43
nontraditional nature of the GIG economy implies that gig workers (usually treated as
self-employed or independent contractor) lacks employer to co finance insurance
contributions. Therefore, to the extent that gig workers are classified as self-
employed, the application of social insurance (SI) provisions to gig workers is clearly
part of a larger challenge of extending SI in African countries (where self-employment
and informality predominates). Currently, most online gig workers do not receive any
insurance coverage from platforms. In other words, there is usually no contractual
employer-employee relationship between gig workers and the platforms where they
obtain tasks. Consequently, gig workers have to contribute to public or private social
insurance programs outside their operational platforms.

Again, the question of how platform workers could be classified has attracted critical
debates and triggered several count cases. However, classification is not yet an issue
in Africa. In fact, unlike the application of gig work in developed economies, the
dialogue on gig work in many African countries are yet to focus on classification
challenges. Specifically in Kenya, Ethiopia and Tanzania; there is no operational
legislation in place that mandates platforms to provide digital gig workers with welfare
or social security protections (Aventimi, et.al, 2022). Furthermore, mercy corps (2020)
found that under Kenyan law; there was no specific employment legislation for digital
gig workers. Here, platforms engaged digital gig worker as independent contractors
through a contract for service.

Consequently, gig workers under such a contract were not entitled to protection such
as paid sick leave, annual leave, health insurance or pension protections (Mercy Corps,
2020) indeed, the classification of gig workers has implications for labor laws, taxes
and social welfare programs. Although this poses challenge for gig workers to access
social insurance; the labor market realities in African countries are characterized by
high degrees of informality and diverse nonstandard forms of work with large
populations not covered by labor regulations. In other words, in African countries
(where informal self-employment is the standard) the more significant challenge to
social insurance coverage is the general lack of programs for self-employed
individuals. Even at the country level, there are no clear patterns in how gig workers
self-classify. Yet, there may be some evidence to suggest that welfare status and labor

44
market experience plays a role. However, the bigger issue in the context of African
countries is the under coverage of social insurance for genuinely self-employed and
informal workers.

As a policy response, the gig platforms can be leveraged to extend coverage to the
informal economy. Specifically, digital technologies can enable formalization of
informal gig work. In other words, by capturing identifying information gig-enabling
platforms can serve as intermediaries for social registries. This in turn, link eligible
individuals to existing social protection programs.

Again, collective action by gig workers can be an important pathway to better working
conditions for geographically dispersed workforce. But like most self-employed
workers, gig workers typically lack collective bargaining rights because they tend to
work informally or that such bargaining would entail; a violation of competition law.
Therefore, as the platforms economy evolves, the peculiar nature of platform topology
may have engendered new ways and structures for workers representation and
collectivization. Operationally, attempts to develop union-inspired structures and
activities are beginning to manifest across the economy with predominating initiatives
in all types of gig work (ILO, 2019). These actions to support organized workforce are
shown below:

(I) clearly, using the very mechanism of ratings used by platforms to rate workers
reporting on the platforms could be an effective way to incentivize platforms to
protect workers.

(II) Leveraging of technology to scale access and impact. As an operational

illustration, Amazon mechanical Turk (AMT) is a website and service operated
by Amazon as a meeting place for clients requesting help with large volumes
of micro tasks as well as workers wanting to do those tasks (for monetary
payments). Basically, AMT brings stopgap, short terms jobs to potential
workers. Unfortunately, many workers still find themselves working in a system
with little remedy when faced with wage theft or clients disciplining
Consequently, TURKOPTICON came out of engagements with workers to
articulate hypothetical Bill of Rights with the following themes: uncertainty

45
 about payment, unaccountable and seemingly arbitrary rejections (or non-
payments), fraudulent tasks, prohibitive time limits, pay delays,
uncommunicative clients and administrators costs of employer errors borne by
workers as well as low (poor) pay, Strategically, Turkopticon functions
alongside crucial worker forums to bridge the worlds of workers and employers
(given the convenient distance between them).

Essentially, Turkopticon interrupts the dynamic of human computation on

demand by offering workers, evaluation support and work request refusal
capability. In this regard, Turkopticon has become a stable and sustainable gig
worker-tool.

(III) Notably, self-initiated groups on Facebook, Reddit, We Chat or WhatsApp are

bringing gig workers together from different continents of the world. Therefore,
isolation and anonymity can be addressed through social media platforms that
bring gig workers together to share information develop a collective identity as
well as providing collective support.

(IV) Again, platform cooperatives can be seen as alternate option to address the
precarity and economic dependence of gig workers. Technically, platform co-
ops combine the online infrastructure of a platform to mediate social and
economic interaction with the collective ownership and democratic governance
of a cooperative enterprise. Here, as owners of platform co-op, gig workers can
create the conditions for better pay and job security (Bunders, et.al. 2022).

Notably, they decide on commission rates and surplus value while legal issues
concerning their self-employed status could also be solved equally. Yet, in principle,
gig workers can either continue to do their work as self-employed workers in a
producer cooperative) or as employees (in a worker cooperative). Clearly, table 5.1
shows an overview of cooperative types as applicable. As presented and whichever
way, the issues that arise in the regular platform economy about employment
conditions and social protection benefits; would still be in the hands of the platform
co-op members. However, free lancers could be motivated to join co-ops because of
the additional services provided such as filing taxes and acquiring social security

46
benefits, training programs mentorship programs, etc. consequently, the following
reforms should be activated:

(1) Workers must identify compelling common cause that will sustain their interest
in participating in a collective effort.

(2) Governments and collective bargaining organizations need to reform labor

market governance institutions such as giving online gig workers a participatory
role since they have different interests but one voice.

(3) Need to continue to modernize institutions that acknowledges new forms of

work.

Yet, beyond traditional benefits that accompany formal employ6ment; gig workers
desire access to training as well as access to credit or loans to buy operational
equipment (such as laptops and internet access)

However, policies adopted in advanced countries cannot be transplanted to developing

countries such as Africa. Therefore, some possible policy options for African economies
include the following:

(A) That a more concerted effort to extend social protection coverage such as social
assistance and active labor market programming to self-employed workers in
the informal sector is the more effective policy to ensure that gig workers are
protected.
(B) Since gig workers in African countries typically fall in the missing middle of
social protection; government efforts to close the coverage gap for all informal
and vulnerable workers will certainly benefit gig workers.
(C) And by establishing a foundation floor, African countries will avoid the risk of
segmenting the labor market and adopting policies for those diverse set of
workers outside labor regulation

TABLE 5.1 PLATFORM OWNERSHIP ND MEMBER EMPLOYMENT:

COOPERATIVE TYPES

47
S/N. TOPOLOGY SELF EMPLOYED EMPLOYEES
MEMBERS MEMBERS
(A) COOPERATIVE NON-OWNED Producer cooperative that does Worker cooperative that
not provide gig worker with does provide gig workers
labor rights and does not own a with labor rights but does
matchmaking platform not own a matchmaking
platform
(B) COOPERATIVE OWNED Producer cooperative that does Worker cooperative that
not provide gig workers with does provide gig workers
labor rights but does own a with labor right and does
matchmaking platform own a matchmaking
platform

(D) African governments should adopt a regulatory sandbox to test and experiment
with different models that paperless regulate but apply to the labor market
realities of their economies. Specifically, these governments can experiment

48
 with behavioral interventions to encourage uptake of pensions and social
insurance programs that are available to self-employed workers as well as
leveraging innovations in behavioral science to design micro products that are
best suited for the gig worker profile.
(E) Again, African governments could explore models of possible partnership with
digital platforms. Perhaps by generating a digital record of transactions (that
is, gig platforms document information that was previously informal and
unrecorded).
Essentially, this offers the possibility of augmenting social registries through
which safety net system can be accessed by gig workers.
(F) Similarly, African governments can partner with platforms in outreach efforts
to increase enrollment and contributions to government social security plans.
Here, short-term social insurance programs such as savings plans could serve
as a crucial entry point to link with workers as well as broadening their scope
(G) Since digital gig work is rapidly changing African governments need to develop
their capacity to collect vast amounts of data being generated. This will enable
then to systematically track and understand the emerging (new) form work. In
this regard, labor force surveys can greatly assist.
(H) As partnership engagement, African countries can leverage platforms to work
toward the expansion of social registries so as to facilitate gig worker access to
social programs for which they are eligible.
(I) As training for low-skilled disadvantaged workers and women, platforms and
their partner service providers can work with governments to provide financial
inclusion services and skills upgrading.
(J) African governments can leverage the platform work model of digital gigs which
offers an opportunity to augment the social protecting toolbox via digital public
works that leverage digital platforms, providing income-earning opportunities
as well as building digital skills among the poor.
(K) Indeed, to ensure that gig workers are protected, collective bargaining is critical
to fill the regulatory vacuum that exists for such workers. Therefore, new
models of collective bargaining (such as those using third-party ratings and

49
 crowd ratings to align platform incentives with worker and policy incentives)
should be promoted.

Clearly, new ways to stimulate digital jobs is critical for low-skilled, vulnerable youth
(often with limited schooling and in countries with limited opportunities in formal
private sector jobs), jobs for women as well as people with disabilities facing mobility
constraints. Therefore, online gig platforms constitute a growing source of work
opportunities for African countries. Consequently, programs enabling vulnerable
population to access online gig jobs can support social and economic inclusion in a
rapidly changing world of work which contributes to closing the digital divide across
continents and countries. Essentially, such programs could be used as short-term
instruments and need to be designed along with adequate measures to address the
risks associated with online gig work. Illustratively table 5.2 presents the design and
implementation phases of a prototype. Online gig project as shown below (World
Bank, 2023). However, the following recommendations are suggestion on ways to
maximize the benefits as well as addressing the risks (downsides) of the online gig
work in Africa countries.

A DIGITAL SKILLS BUILDING WITH PEOPLE SUPPORT FOR EXTRA

INCOME

Policy makers should use the emerging new form of flexible work to increase access
to a wider variety of income-earning opportunities for a wider variety of people
(especially the disadvantaged) so that they can equally build critical digital skills in the
process.

TABLE 5.2 ONLINE GIG PROJECTS: DESIGN AND IMPLEMENTATION PHASE

D POLICY

S/N. PHASES TASKS

50
(1) PROGRAM STRATEGY (i) Aiming to accelerate digital adoption or
DEVELOPMENT addressing lack of domestic jobs or respond to
crisis.
(ii) Identifying local supply and demand challenges
as well as competitive advantage of the country
(iii) Involving eco system stakeholders during
implementation as trainers, job providers, etc.
(iv) Identifying a reliable government agency to
initiate, sustain and scale the program.
(v) Collaborating with online platform to identify
potential demand.
(vi) Starting with a pilot project as a phases strategy
(2) GIG WORKERS DEVELOPMENT (I) Identifying demographic target that determines
PIPELINE relevant online task as well as accessing the need
for access to devices and internet
(II) Designing well-defined preassessment and
scoring strategy so as to build participant trusts.
(III) designing clear (transparent) communication
strategy so as to increase awareness about the
program as well as the potentiality of gig work
using appropriate methods
(3) TRAINING PROGRAM DESIGN (I) Consideration of skill types during training:
PERFORMANCE Technical, socio-emotional and freelancing skills
(II) Checking whether short-term or longer-term
training is more suitable.
(III) Providing hands-on training for new gig workers
(4) INFRASTRUCTURAL ACCESS (I) Leveraging existing public infrastructure to lower
AND PAYMENT OPTIONS costs as well as providing access to the internet
using data stipends.
(II) Increasing access to payment options as well as
exploring appropriate payment options such as
P2P payment channels mobile money accounts,
bank account and crypto currency.
(5) DEMAND OPPORTUNITIES AND (I) Linking beneficiaries with opportunities by working
PROGRAM BENEFICIARIES’ closely with platforms
LINKAGES (II) Stimulating local demand for online gig workers
(III) Digital public works exploration
B: DIGITAL INFRASTRUCTURE INVESTMENT AND DEVICES ACCESS

51
Operationally, affordable access to digital information and communication
technologies (such as internet, mobile phones, mobile money, etc.) for all citizens
including disadvantaged groups (such as youth and women) is urgently critical. As
policy response, internet cost should be reduced as well as bringing broadband
connectivity to rural areas, poor neighborhoods and groups in need. Notably a
potential gig worker requires access to three basic working tools: reliable internet
connection (mobile or fixed broad band); internet enabled device (smart phone, tablet
or computer) as well as reliable energy source (electricity)

C: JOBS AND INFRASTRUCTURAL AGENDA INTEGRATION

While access to infrastructure and digital connectivity is critical; policymakers should

be intentional about integrating a jobs agenda into the digital infrastructure expansion
agenda. In fact, integrating a jobs lens into digital infrastructure projects will maximize
the economic impact on local livelihoods as well as creating job opportunities closer
to home for vulnerable youths and others.

D: PLATFORMS ENGAGEMENT TO ENHANCE SOCIAL PROTECTION

COVERAGE FOR INFORMAL WORKERS.

African governments should work with digital platforms to promote coverage of

informal workers in social security programs. By offering some level of organization to
the unorganized sector, the digital platforms have the technological capacity to
conduct massive outreach activities (even individually tailored framing and messaging)
through automatic enrollment payment reminders as well as enabling small frequent
contribution deductions. In other words, innovative partnership models with platforms
could help create win-win solutions. Therefore, policy makers should find innovative
ways of partnering with platforms to provide support and training for persons from
vulnerable and disadvantaged backgrounds. And by requiring mobile payments and
identify information, platforms could be important partners to African policy makers
to increase uptake of government social insurance plans.
E: INNOTIVE SOCIAL INSURANCE EXPERIMENTAL MOLDELS

52
Notably, online gig jobs are often project bused and exhibit more income volatility
than traditional jobs overtime. And by building consensus for an international
governance system to ensure minimum rights and social protection for platform work
might take several years. Therefore, experimenting with different pilots and methods
(depending on the local context) is highly relevant.

Consequently, current pilots and interventions initiated by African governments and

platforms as well as their collaboration should continue with encouragement.
Specifically, these governments should establish social protection floors to ensure that
platform workers are protected in the event of covariate and idiosyncratic shocks.
Other actions should include the following:

(I) Expanding social registries in partnership with gig work platforms to facilitate
gig workers access to social programs for which they are eligible.
(II) Facilitating the accreditation of gig workers as well as creating a regulatory
sandbox to test how behavioral tools that promote pension savings can be
successfully deployed at scale.
(III) Supplementing social protection programming with digital public works
interventions that leverage digital platforms on a pilot basis and given the
nascent nature of digital public works.
(IV) Exploring partnership with private insurers to offer benefits to freelancers or
linking gig workers to existing, publicly provided social security programs
(V) Subsidization (in the form of either matching contributions or direct contribution
subsidy) as well as allowing more frequent payment of contributions in smaller
amounts can make retirement program more appealing to gig workers in Africa.

F: CREATING NEW DIGITAL WORK OPPORTUNITIES VIA E-GOVERNMENT

MODEL

Notably, many African countries are digitizing records and putting them online as e-
governance strategy. Therefore, ways in which governance can drive demand include
programs to digitize achieves, public records, court files and to transcribe public health
information and government services. Certainly, all these tasks will require digitally
trained workers. Again, there are growing opportunities for tele health for public

53
hospitals, transcription of public health information and government communications
as well as digital cultural preservation.

In this way, big government contracts can create substantial demand for online gig
workers and digital platforms in Africa.

G: CREATING NEW DIGITAL WORK OPPORTUNITIES VIA E-GOVERNMENT

MODEL

Need for government programs that work on increasing the capacity of local micro,
small and medium enterprises (MSMES) and start-ups so as to encourage them to use
digital tools for productivity, improve quality as well as overcoming constraints in
accessing skilled talent. However, most regional and local platforms struggle to
establish themselves as a profitable business. Hence, the need for interventions from
development organizations that works to promote entrepreneurship, start-up
ecosystems and firm growth (that are vital for the creation of good jobs in African
economies)

Generally, African countries and governments need to establish data safeguard

standards as well as ensuring transparency in how platforms use data to match tasks
in order to address discrimination embedded in the algorithms (such as geo fencing).
Furthermore, there should be documented due process for decisions affecting gig
workers so that they can be able to appeal decisions affecting themselves as well as
being clearly informed. However, for African governments to address any risks
associated with the emerging gig works; there is critical need to understand the size,
scale and scope of gig work before regulatory designs in African countries. Yet, to be
able to understand the emerging nature of gig work in Africa, their governments need
reliable data and capacity or ability to monitor trends in real time. Consequently, labor
force surveys need to adapt to as well as measuring these new forms of work. In other
words, given the non-negligible and increasing share of online gig workers, standard
labor force surveys need to adapt the questionnaires as well as agreeing on the
standard ways to define digital gig works while collecting relevant labor market
information. Despite International labor organization initiatives, African governments
should frame appropriate measures to enforce standards of data sharing by platforms.

54
Finally, figure 5.1 summarizes those policies that can reap the benefits and avoid the
risks of digital gig work in African countries (World Bank, 2023; Nwaobi, 2019)

FIGURE 5.1 DIGITAL GIG WORKS: BENEFITS AND RISK AVOIDANCE

POLICIES

55
DIGITAL GIG DIGITAL GIG DIGITAL PLATFORM DIGITAL GI
ECONOMY WORKERS SUPPLY WORKERS DEMAND
BUILDING DIGITAL PROMOTE CROWD LEVERAGE E-
SKILLS RATINGS AND THIRD- GOVERNANCE
PARTY ACCREDITATION REFORMS TO CREATE
DEMAND
PROMOTE LABOUR STRENGTHEN CAPACITY PROMOTE GROWTH OF
MARKET INCLUSION TO COLLECT SYSTEMATIC LOCAL PRIVATE
DATA FROM PLATFORMS SOCIAL ECOSYSTEM
ENHANCE SOCIAL EXPERIMENT WITH
PROTECTION INNOVATIVE SOCIAL
COVERAGE PROTECTION MODELS
POLCY AND SUPPORT NEW MODELS
REGULATORY OF COLLECTIVE
ENVIRONMENT BARGAINING
AVOID ALGORITHMIC
BIASES AND ENSURE
TRANSPARENCY
IMPROVE DIGITAL
CONNECTIVITY
EMBEDDING JOB AGENDA
INTO THE
INFRASTRUCTURE
AGENDA

6.0 CONCLUSION

56
Indeed, the African Union and the rest of the world has been experiencing disruptions
that were once considered to be at the edge of plausibility. Notably, the COVID-19
pandemic disrupted the normality of life as we know it. Again, the Russian invasion of
Ukraine, the Israel–Gaza war, the military aggression and hybrid threats raise
geopolitical questions about the post-World War II economic order. Similarly, several
continents have experienced multiple extreme weather events such as devastating
floods, wildfires and violent storms at an unprecedented scale. Therefore, the global
economy is currently showing its vulnerabilities (Muench, et.al. 2022).

Consequently, digital transition has the potential to transform dominant practices in

the economy and in society. Specifically, digitalization can change how people
communicate, receive information or learn. In other words, it can change how
businesses create value as well as how supply chains are managed. Essentially, it is
driven by the vast new opportunities that can be created as well as helping to solve
crucial challenges of today’s society. In other word, the digital transition is an ongoing
process that is shaping the future of societies and economies such as Africa. Here,
these changes trigged by the digital transition have the potential to increase prosperity
as well as solving many societal challenges. Yet, at the same time, increasing
digitalization entails many risks as observed.

However, as the transitions progress, increasing return from economies of scale and
scope for digital technologies could create new markets. And with digital technologies
becoming more widespread; they can open up new development paths that lead to
more innovation industry networks which can expand activities around a digital
solution via supply chains, infrastructure and complementary technologies. Essentially,
platforms play a critical role in the digital economy (with data emerging as an
exceptionally valuable asset for them). Similarly, technology companies (along with
the availability of open source and software service solutions) have played a crucial
role in the widespread adoption of smart devices. As innovative development, it has
facilitated the development of digital platforms that have penetrated various sectors
of the economy as well as offering diverse uses and services. Operationally, these
platforms can be categorized into three groups: search engines or social media
platforms, business to business platforms and digital labor platforms.

57
Typically, the digital labor platforms act as intermediaries connecting gig workers with
consumer clients (ILO, 2021; Cook and Rani, 2023). Based on where labor transactions
take place digital platforms can be categorized into two main types: Online labor
platforms (comprising freelance, micro task and talent platforms) and location-based
platforms (comprising tax, delivery, care and domestic services) clearly, the distinct
characteristic of the digital economy lies in its ability to outsource tasks or projects
globally through online labor platforms as well as facilitating work through digital
applications. Therefore, this trend holds the potential to bring about a structural and
productive transformation within African economies. However, the implication of the
ongoing platformization of work for the development process of African countries are
numerous. In fact, the availability of cheap labor has attracted some venture capital
investments that has led to the emergence of some platforms in Africa country
markets. While this has led to some job creation, it is usually concentrated in low-
skilled and low-paid tasks. Perhaps, this could lead to limited skill development.
Therefore, it is imperative for African countries to regain control over the digital
economy and shape them according to their specific development goals. Basically, this
calls for a proactive exploration of how emerging technologies can be harnessed to
drive productive transformations through leveraging a highly skilled and qualified
workforce that contributes to economic development as well as enhancing ranking on
the human development index.

In other words, by reclaiming agency in the digital economy, African countries can
forge a path towards inclusive and sustainable development while ensuring that the
benefits of technological advancements are distributed equitably as well as
contributing to long term prosperity. Thus, in order to develop a strategy for an online
gig jobs program in any country or local context, some important preconditions are
essential. Here, practitioners need to possess clear motivation; assess readiness in the
local context (including stakeholder); identify a reliable government agency for
implementation and sustainability as well as developing a phased strategy that will
enable pilots, learning and scale. Since access to digital infrastructure is key, African
policymakers should find innovative ways to partner with platforms and other sector
players so as to provide support and training fort the vulnerable populations. However,

58
these programs should ensure that appropriate protections are in place as well as
informing potential beneficiaries of the short term and volatile nature of gig jobs. Yet,
for African policymakers, regulating the gig work is a complex task. In other words,
overregulation or poor regulation is risky. In fact, while there have several regulatory
and legal initiatives in advanced economies, those efforts have limited relevance in
African countries context which cannot be simply transplanted. Therefore, it is
important to African governments to build the capacity to collect and monitor data
through labor force surveys.

Operationally, the governments of African countries can use the potential of digital gig
work to build human capital, develop African digital skills as well as providing
opportunities to supplement household income of Africans. Again, promoting access
to digital infrastructure is critical while digital devices such as laptops, smart phones
and tablets can open new doors to work. Essentially, under social protection coverage
for all types of informal workers is the best way to protect African gig workers without
segmenting the labor market.

Therefore, African countries should experiment with different pilots and methods to
establish effective social protection and insurance for emerging African digital (online)
gig workers. Clearly, the time to act is now.

REFERENCE

ADB (2023) African economic outlook Abdijan: African Development Bank (ADB).

59
Acemoglu, D. (2002) “Technical change, Inequality and the labor Market”, Journal of
Economic literature, 10(1) PP7.22

Anwar, M.A and M. Graham (2002), The Digital Continent: Placing Africa in Planetary
Networks of Work, Oxford: Oxford University Press.

Ayentimi, D. et.al. (2022), “Decent Gig Work in Sub Sahara Africa”, Journal of
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APPENDIX A: ARTIFICIAL INTELLIGENCE APPLICATIONS: PRODUCTIVITY

TOOLS

S/N. TOPOLOGIES CHARACTERISTICS APPLICATION AREAS

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(1) FLAIR AI A Natural language pressing tool that An open-source tool that
offers a friendly interface for researcher packs amazing features and
and practitioners fixes such as prototyping
design system optimization,
integration with other tools
as well as work flow
automation.
(2) Auto draw An artificial intelligence supported design Several application features
and drawing dashboard which does not such as multimedia
need prior knowledge or drawing skills to functionality, intuitive user
use the tool in other to simplify the process interface as well as AI
of creating images, AI design engine driven guessing.
processes the work.
(3) IOWEB Website builder created with AI assistant. Optimizes website with
It provides hosting services for World pages peed Booster to
Press Websites that are AI powered by receive high speed score
Google cloud. and improved website
performance.
(4) AKKIO An automated machine learning tool that It facilitates rapid
facilitates rapid development of AI development, training and
models by developers deployment of machine
learning model without
need for users to write
code. It includes several
capabilities such as the
ability to quickly generate
dashboard, report and
generative visualizations.
(5) REPLIT Cloud-bused platform for software By making suggestions and
creation that enables programmers to use automating repetitive
the power of AI to create websites from processes REPLIT AI
anywhere on any device ASSISTANT enables
engineers to produce better
code more quickly. It also
has the capacity to quickly
generate reports and
visualizations.
(6) .DEEPCOD An AI driven code review tools and Using deep code platform
software startup to improve developers and without generating
coding by making suggestions and codes, customers can ask
automating tedious activities questions, change their

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 code and obtain insights
quickly.
(7) CONTENT Assist in creating long-form website Using the GPT-3 language
EDGE content that is mainly centered on model to generate human
marketing copy written to convert. text that truly interest
readers as well as helping
to elevate content
marketing strategy by
writing website copy deal
for audience and niche.
(8) COPY AI Copywriting tool that produces excellent Offers a variety of
marketing content for businesses. It uses capabilities such as
machine learning to produce a variety of generative artificial
content types such as emails, social intelligence which enables
media posts, web copy blog headlines, users to work more quickly
etc. and intelligently.
(9) MUTINY Assist marketers in turning their top-of- It employs-pre-built data
funnel demand into income without need connectors to categorize
for programmers. It provides on AI web users based on their web
conversion platform that may assist in activity, organization size,
attracting and converting more B2B industry and funnel stage.
visitors to your website.
(10) LAVENDER An email coaching site that we can use to It is made of three main
write effective emails father. It works by components which include
combining broad learning or email data an email coaching portal,
with behavioral psychology personal assistant and email
intelligence. Automatically,
generate insights to work
with ongoing email thread.
(11) WARMER AI powered innovate email writing tool Sales person can site
that can help you generate productive appealing emails for
emails and get replies in no time. outreach and ameliorate
their communication skills
for better results
(12) OCTANE AI-powered platform that provides data Octane tool are used by
collection, engagement quizzes, SMS merchants to convert,
automation and personalized Facebook connect and retain current
messenger. customers by personalizing
the customers journey and
giving them confidence to
purchase.

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(13) KAIZON AI powered platform that offers insights It provides a browser-based
and crucial steps to support client successplug in that allows for
as well as assisting businesses in keeping effortless CRM system
and expanding client base. integration as well as
integrates with sales force,
service \now, MS Dynamics
and other systems.
(14) TASKADE An AI-automation productivity tool that Automate activities; create
combines several potent features to boost dynamic work flows; create
team collaboration and productivity. mind maps for
brainstorming;
communicate with AI
assistant as well as
visualizing notes and
documents using the start-
up.
(15) TLVD An AI automated meeting recorder that Operationally, With Speaker
summarizes and translate calls with team Recognition, The AI Meeting
members, clients and prospects. Transcription Function from
Technically, it includes capabilities like TLVD can digitally record
automatic call recording and transcription meetings in various
for zoom and Google meet, high – quality different languages. And
videos will audio capture as well as using TLDS’s AI meeting
access to recordings note taker, one can quickly
and easily search every
word at any meeting,
timestamp important
meeting moments as well as
summarizing important
moments.
(16) NOTION AI A productivity and note taking tool that Operationally, numerous
provides administrative capabilities capabilities available
including bookmarking, task management includes text creation,
project monitoring, etc. Technically, it automation of routine
provides more offline function that is operations, as well as
available as app on Android, MACOS, creation of fresh materials
WINDOWS and IOS. for linked workspace.

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