The Future of Work Capsules: The gig economy in Africa

By Baptista Sarah GEBU

The gig economy developed its name from each piece of work given to independent contractors in informal work, which is similar to an individual ‘gig’. A gig economy is a free market system in which temporary positions are common and organizations hire independent workers for short-term commitments. The term “gig” is a slang word for a job that lasts for a specified period. Research has it that, traditionally the term was used by musicians to define a performance engagement.

Just like in the years gone by, the gig economy is predicted to be exciting but chaotic in 2024 and beyond to some extent.  To keep up, it’s vital that freelancers continuously improve their skills, adapt to new trends and technologies, develop strong relationships with clients and peers, and plan for their financial future. Instead of having permanent employees, businesses can source the talent they need without committing to full-time contracts. The gig economy offers more flexibility for workers because they can work with numerous companies instead of just one employer – a strong benefit it presents to the future of work discourse.

Gig workers often live without the security of a stable job and a regular paycheck. This lack of job security can create anxiety about future income and financial stability. It underscores the need for social safety nets that accommodate the gig economy’s unique challenges. There are many benefits to finding work in the Gig Economy, including greater control of your schedule and the ability to set your work rates. However, the downside to working for an employer that pays in gig hours is poor compensation. Gig workers differ from full-time employees since they typically work for short-term contracts with non-traditional employer-employee arrangements. This presents a new challenge for HR teams regarding talent acquisition, company culture, redefinition of job roles, and performance management. But informal work is work too. Let’s turn our attention to discussing the benefits and challenges, identifying gaps, and looking at the way forward.

Informal work, often referred to as the “gig economy,” is a significant and growing part of the global workforce. While traditional employment may come with benefits and stability, it’s important to recognize that informal work is work embracing the reality of informal work.

Many individuals participate in informal work, such as freelance writing, ride-sharing, or food delivery, to name a few. This type of work offers flexibility and the ability to be your boss, but it also comes with its own set of challenges.

Benefits of embracing informal work & challenges faced by informal workers

Informal work allows individuals to pursue multiple income streams, diversify their skills, and gain valuable experience in various industries. It can also provide a sense of autonomy and independence that may not be present in traditional employment.

Despite the benefits, informal workers often lack job security, and access to benefits such as healthcare and retirement plans, and may face income instability. Additionally, they may not have the same legal protections and rights as traditional employees.

Recognizing the value of informal work is very important. It’s essential to acknowledge the contributions of informal workers to the economy and society as a whole. Their skills and services are in demand, and they play a crucial role in meeting the diverse needs of consumers and businesses.

The question that often comes to mind thereafter is this – how can we support informal workers? Efforts to support informal workers include advocating for fair labor practices, promoting financial literacy, and expanding access to resources such as affordable healthcare and retirement options. Additionally, creating platforms for networking, skill development, and mentorship can empower informal workers to thrive in their chosen fields.

The subject matter of diversity needs some focus as we discuss the gig economy as well. How can businesses, stakeholders, and individuals embrace diversity in their workforce? Embracing the value of informal work contributes to a more inclusive and diverse workforce. It recognizes the unique talents and contributions of individuals who may not fit into traditional employment structures and fosters a culture of innovation and creativity. Informal work is indeed work, and it plays a vital role in the modern economy. By acknowledging its significance, addressing its challenges, and providing support, we can create a more inclusive and equitable environment for all types of workers.

The Gig Economy: Benefits, challenges, identified gaps and way forward

The gig economy has been a hot topic in recent years, with more and more people opting for freelance work over traditional employment. This shift has brought about a range of benefits, and challenges, and identified gaps that need to be addressed for the gig economy to thrive. Let’s explore these aspects and discuss the way forward for both gig workers and businesses in Africa.

As mentioned earlier -one of the key benefits of the gig economy is the flexibility it offers to workers. Freelancers can choose when and where they work, allowing them to create a schedule that fits their lifestyle. This flexibility also benefits businesses, as they can hire freelancers on a project-by-project basis, reducing overhead costs. Refer to my earlier publications and my book (prepare for the Future of Work) addressing the changing nature of work, the workplace, and the workforce to learn more.

While the gig economy offers flexibility, it also comes with its own set of challenges. Gig workers often lack job security and benefits. Additionally, they may struggle to find a consistent stream of work, leading to income instability.

One of the major gaps in the gig economy is the lack of regulation and protections for workers. Many gig workers are classified as independent contractors, which to some schools of thoughts means they are not entitled to the same rights and benefits as traditional employees. This gap has led to calls for better labor laws and protections for gig workers a situation major stakeholders, institutions of higher learning, and research bodies must focus on to help unearth practical solutions to help address this ever-growing economy – the gig economy.

To ensure the sustainability of the gig economy, it is crucial to address the identified gaps and challenges. This can be done through a combination of government regulations, industry standards, and individual initiatives. Businesses can play a role by offering fair wages, benefits, and support to their gig workers this is because; the gig economy has the potential to revolutionize the way we work, offering flexibility and opportunities to both workers and businesses. By addressing the challenges and gaps in the gig economy, we can create a more inclusive and sustainable work environment for all.

The Rise of the Gig Economy in Africa: Challenges and prospects

How is the gig economy rising in Africa? In recent years, the gig economy has gained momentum across Africa, driven by technological advancements and the increasing demand for flexible work arrangements. Platforms like Uber, and others have provided opportunities for individuals to offer their skills and services on a freelance basis.

Despite the opportunities presented by the gig economy, gig workers in Africa face several challenges like their counterparts in other continents. One of the main issues is the lack of job security and benefits that come with traditional employment. Additionally, fluctuating demand and payment delays can make it difficult for gig workers to maintain a stable income, especially in Africa.

Could this have any impact on traditional employment? Research has it that, the rise of the gig economy has also had an impact on traditional employment structures in Africa. Companies are increasingly turning to freelance workers to meet their staffing needs, leading to a shift away from full-time positions with benefits. This trend has raised concerns about job security and the quality of work arrangements.

This offers opportunities for economic growth because, despite the challenges the gig economy presents, research projects the significant opportunities for economic growth in Africa as high and rewarding. By providing a platform for individuals to monetize their skills and talents, the gig economy can contribute to job creation and entrepreneurship development. This can lead to increased economic participation and innovation across various sectors.

Government regulation and support

But can the government and other stakeholders regulate and support this powerful economy emerging as a result of the changing nature of work? Effective government regulation and support are crucial for the sustainable growth of the gig economy in Africa. Policies need to be put in place to protect the rights of gig workers, ensure fair compensation, and promote a level playing field for all participants. Additionally, initiatives to provide training and resources for gig workers can help enhance their skills and employability.

Technological advancements continue to drive innovation in the gig economy in Africa. Mobile payment systems, online platforms, and digital communication tools have made it easier for gig workers to connect with clients and complete projects efficiently. These advancements have the potential to further expand the reach and impact of the gig economy in the region.

For the future outlook, as the gig economy in Africa continues to grow and evolve, stakeholders need to address the challenges and leverage the opportunities presented by this new way of working. By fostering a supportive environment for gig workers and promoting inclusive economic policies, Africa can harness the full potential of the gig economy for sustainable development and prosperity.

Baptista is an Award-winning and vision bearer of innovative ideas and platforms. A global citizen and vocal Advocate for professional and Vocational trades through her agency FoReal HR Services. She is also a researcher, prolific writer, author and humanitarian. Building a team of efficient & effective workforce is her business, and affecting lives is her calling – inspiring the next generation about the changing nature of work the workplace, and the workforce. Call or WhatsApp: +233(0)262213313.  Follow the hashtag #theFutureofWorkCapsules #FoWC