Labour cautions that the rise of automated workers will lead to a shortfall in government income from the gig economy

African governments are being cautioned by Organised Labour that they may face significant revenue losses if the rapidly expanding platform economy on the continent remains largely unorganised and unregulated, with this warning emerging from an ongoing two-day pre-International Labour Conference meeting in Lomé, Togo.

This meeting, held ahead of the 114th Session of the International Labour Conference scheduled for June 1–14 in Geneva, Switzerland, aims to discuss Africa’s position on emerging labour issues, particularly the fast-growing platform economy.

According to Akhator Joel Odigie, General Secretary of the International Trade Union Confederation – Africa, a substantial portion of the formal sector is shifting into the informal economy through digital platforms, potentially weakening labour protections and government tax revenues.

Odigie stressed that the earlier governments and organised labour collaborate to regulate the emerging sector, the better it will be for workers, governments, and national economies, advising governments to view workers as partners in development rather than adversaries.

In the current weak regulatory regime of the digital space in Africa, Odigie noted that artificial intelligence or robots do not pay taxes, and the continued shift of economic activities into the platform economy without proper organisation and regulation would lead to significant tax revenue losses for governments.

He further warned that without clear regulations, platform owners—many of whom are based in advanced economies in Europe and the United States—would continue to reap the benefits of the platform economy while African workers bear the brunt of poor protections and precarious working conditions.

Odigie cautioned that Africa stands at a critical moment in determining the future of work on the continent, stating that Africa is at an existential crossroads and advocating for African trade unions’ strategic collaboration with the state and its functionaries.

Eric Manzi, Deputy General Secretary of the ITUC, emphasised that all workers, including those in the informal and digital economy, deserve adequate protection and recognition of their rights, noting that the global work environment has worsened due to ongoing geopolitical tensions.

Manzi stressed that trade unions must continue to use the mechanisms of the International Labour Organisation to advocate for stronger protections for workers globally, expressing concern that platform workers across Africa remain largely unprotected.

He urged African labour leaders to approach the upcoming International Labour Conference united and focused on securing rights and protections for workers in the platform economy, stating that the continent must speak with one voice at the global labour forum to ensure that the rights of platform workers are recognised and protected.

The meeting forms part of preparations for Africa’s participation in the upcoming International Labour Conference, where labour leaders are expected to push for stronger global frameworks to regulate platform work and protect workers in the evolving digital economy.