FRIEDRICH-EBERT-STIFTUNG – A majority working in the shadows Figure 7.10 indicates that: – Age does not significantly influence the decision to join a group, with the exception of the 15–24 years cohort, which seems less prone to affiliate with a group than others. – Education levels are a stimulus for group membership, especially in Kenya, where respondents with a university education are nearly twice as likely to join a group than those without any schooling(whereas the opposite is true in Ethiopia). – Income levels do not have a significant impact on organ­izational density, except in Zambia. – Overall, women are just as likely to join a group as men. However, gender influences people’s priorities in group preferences. In Côte d’Ivoire, Senegal and Zambia, women have a significantly higher propensity to join sav­ings clubs: the proportion of female members exceeds that of men by 30 per cent or more. Men are keener to join cooperatives and neighbourhood groups. – Similarly, urban informal economy actors have more or less the same propensity to form a group as those living in rural areas. – Informal economy employers are more prepared to join a group than employees, with own-account workers falling in-between. It appears that the overall effect of socio-demographic and socio-economic variables on group membership is small. This does not mean that income and employment status, for example, do not play any role. It could rather mean that income inequality is not high enough to make a difference in group affiliation. 7.5 CONCLUSIONS The survey confirms that many informal economy operators in sub-Saharan Africa are indeed organized. They have established various types of groups and associations, in particular savings clubs, religious associations, cooperatives and neighbourhood groups. The motivation for organizing and the selection of groups is to a lesser extent influenced by gender, age, location, education, employment status or income levels. Most individuals joined their groups in quest of economic opportunity, social security or shared identity, much less so in search of societal empowerment. Informal sector groups are often multi-functional. Even those groups that focus on the provision of economic or financial services, or are bound by a common faith, frequently assist members facing a social emergency. The uniformity of group members’ socio-demographic profiles indicates that social polarization within informal employment is not a major driver for getting organized. The quest for social security through risk-pooling and mutual assistance is a cross-cutting concern that drives the organizing efforts in the informal economy. As demonstrated above, the organizations exhibit a high degree of formality, which enables them to connect their members(who remain in the informal economy) with en­terprises in the formal economy, and with local authorities. The survey revealed that an overwhelming majority of respondents expressed a high level of satisfaction with the services their group provides, and with the competence and trustworthiness of the groups’ leaders. Informal economy groups seldom experience governance problems because they are based on voluntary membership, active member participation, and democratic management structures. The groups are generally small, and mostly confined to a village, a market or a district of a town. The survey exposed substantial differences between the countries with regard to organizational density – which is twice as high in Senegal as it is Kenya – as well as with regard to the popularity of different types of groups. These differences may stem from the countries’ respective historical backgrounds:(i) the influence of the French or British colonial regimes;(ii) post-independence regimes(various derivates of African Socialism in Benin, Senegal and Zambia, pro-Western policies in Côte d’Ivoire and Kenya); and(iii) the attitudes of more recent governments towards economic informality. To fully grasp the causes of the observed differences the present survey needs to be complemented by historical research into the origins and patterns of group formation in the informal economies of the six countries. The characteristics and operations of informal-economy groups are influenced by the essential features of informal employment: – The majority of informal-economy actors work on their own account; those who work for others, or employ others(including family members), are a minority. More­over, individuals in the informal economy may frequently change their employment status when new economic opportunities arise, when their business falters, or when a social crisis looms. Consequently, labour relations in the informal economy fluctuate as well, which makes groups that draw members from a specific category only (employers, employed workers, own-account workers) less attractive to those who frequently change their employment status. Consequently, informal economy workers and operators rarely organize in accordance with employment relationships. – Informal economy operations take place outside the application of civil, fiscal and labour laws, and outside administrative regulations. Informal economy opera­tors are generally excluded from formal social security schemes, which means that life risks can be minimized only through the establishment of self-help groups and mutual benefit associations. Consequently, social secu­rity emerges as a cross-cutting concern, permeating all types of groups and associations, including those that are set up for economic or financial purposes. 68