Robots don’t pay taxes, Labour warns of revenue loss in platform economy

2026-03-16 - 18:27

...Says Africa’s booming platform economy unorganised, unregulated By Victor Ahiuma-Young LOMÉ, TOGO — Organised Labour has warned African governments of potential revenue losses if the rapidly expanding platform economy across the continent remains largely unorganised and unregulated. The warning came from speakers at an ongoing two-day pre-International Labour Conference, ILC, meeting taking place in Lomé, Togo, ahead of the 114th Session of the ILC scheduled for June 1–14 in Geneva, Switzerland. The meeting also sought to discuss Africa’s position on emerging labour issues, particularly the fast-growing platform economy. Welcoming participants, the General Secretary of the International Trade Union Confederation – Africa, ITUC-Africa, Akhator Joel Odigie, warned that a significant portion of the formal sector is gradually shifting into the informal economy through digital platforms, a development he said could weaken labour protections and government tax revenues. According to him, the earlier governments and organised labour collaborate to regulate the emerging sector, the better it will be for workers, governments and national economies. He advised governments not to see workers as adversaries but as partners in development. “In the current weak regulatory regime of the digital space in Africa, artificial intelligence or robots do not pay taxes,” Odigie said, noting that 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. “Africa is at an existential crossroads. This is why we advocate African trade unions’ strategic collaboration with the state and its functionaries. Where the state is progressive, we must build strategic partnerships driven by pragmatic alternatives rooted in firm logic and science. We must also continue to hold our governments accountable and responsive to their people. It is critical for us as trade unions to understand this,” he said. Also speaking, the Deputy General Secretary of the ITUC, Eric Manzi, stressed that all workers, including those in the informal and digital economy, deserve adequate protection and recognition of their rights. He noted that the global work environment has worsened due to ongoing geopolitical tensions, including crises in the Middle East and the Russia–Ukraine War. Manzi emphasised that trade unions must continue to use the mechanisms of the International Labour Organisation, ILO, to advocate for stronger protections for workers globally. He expressed concern that platform workers across Africa remain largely unprotected and urged African labour leaders to approach the upcoming ILC united and focused on securing rights and protections for workers in the platform economy. “The platform economy is growing rapidly in Africa, but workers are not adequately protected,” he said, adding 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 ILC, where labour leaders are expected to push for stronger global frameworks to regulate platform work and protect workers in the evolving digital economy.