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The informal sector: concepts, trends, challenges and opportunities in the Lagos and Cape Town construction industries

Olasunmbo A. Olusanya and Abimbola Windapo

Chapter 9 in Research Companion to Advances in the Construction Industry in the Global South, 2026, pp 199-220 from Edward Elgar Publishing

Abstract: The informal sector is a crucial part of the construction industry due to the involvement of informal labour and the short-term nature of many construction projects. This sector is characterised by low productivity, wages and surplus labour. However, there is limited understanding of the challenges and opportunities faced by informal workers and businesses, as well as the trends and new concepts shaping the industry. This chapter examines the evolving dynamics and the role of government policies in the informal sector within the construction industry in developing countries, specifically in Lagos, Nigeria, and Cape Town, South Africa. It explores the traditional understanding of the informal sector and introduces new conceptual frameworks to capture its complexities and contributions. The chapter also highlights the unique challenges and opportunities for informal workers and businesses, and the implications for policy and practice in the construction sector.

Keywords: Construction industry; Developing countries; Employment; Government policy; Informal sector; Subcontracting (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035349012
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