WhatsApp and Telegram Commerce as an Informal Institution: Trust, Enforcement, and Dispute Resolution in West African Trade Communities
Subtitle
Keywords:
Platform commerce, Informal institutions, WhatsApp markets, Telegram commerce, Digital ethnography, Conversation analysis, Informal economies, West AfricaAbstract
WhatsApp and Telegram have emerged as booming marketplaces across West Africa, surprising many. From fashion and beauty products to food and general goods, thousands of traders are now conducting their business, sometimes entirely, in chat groups. These online marketplaces move huge quantities of goods each day, but they operate informally, with no formal contracts, signed agreements, or even minimal legal protections. This raises the questions: how do people trust each other enough to trade? What do they typically do when disputes arise? This paper aims to resolve these questions. While much of the literature on platform commerce either focuses on how digital tools can expand access to markets or on labour precarity, less attention has been paid to the maintenance of order in areas where formal regulations do not apply. We argue that these WhatsApp and Telegram communities function more like informal institutions, shaping economic behaviour through social norms and practices. Our research employs digital ethnography and conversation analysis to explore trade groups in three categories: general goods and resale; fashion and beauty; food markets and groceries. We looked at how the specific designs of these platforms, including message order, receipts, persistent chat histories, and who can or cannot add and remove members, influence trust-building processes, payment negotiations, and even how rule-breakers are dealt with. The first analysis shows that there are three interwoven mechanisms operating here. First, trust-building practices such as vouching for others and credentialing. Second, enforcement mechanisms, including public shaming, calling out bad actors, and group exclusion. Third, negotiation strategies that allow traders to reconcile finances with social relationships. By showcasing what informal institutions look like in practice, this study contributes to broader dialogues around platform economies, digital livelihoods, and economic life in the Global South. It also directly addresses two of the UN Sustainable Development Goals, SDG 8 (Decent Work and Economic Growth) and SDG 9 (Industry, Innovation and Infrastructure).
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