The Role of Informal Economies in Sustainable Livelihoods

Abstract Purpose: The general objective of this study was to investigate the role of economies in sustainable livelihoods. Methodology: The study adopted a desktop research methodology. Desk research refers to secondary data or that which can be collected without fieldwork. Desk research is basically involved in collecting data from existing resources hence it is often considered a low cost technique as compared to field research, as the main cost is involved in executive’s time, telephone charges and directories. Thus, the study relied on already published studies, reports and statistics. This secondary data was easily accessed through the online journals and library. Findings: The findings reveal that there exists a contextual and methodological gap relating to the role of economies in sustainable livelihoods. Preliminary empirical review revealed that informal economies in sub-Saharan Africa play a critical role in sustaining livelihoods but are hindered by limited access to infrastructure and urban services. Informal settlements, often marginalized in urban planning, face challenges such as poor connectivity and regulatory barriers, which limit economic mobility and long-term sustainability. Integrating informal economies into formal urban planning processes, with a focus on infrastructure development, is essential for improving the resilience and sustainability of livelihoods in these areas. Unique Contribution to Theory, Practice and Policy: The Social Capital Theory, Capitals Framework for Sustainable Livelihoods and Dual Labor Market Theory may be used to anchor future studies on the role of informal economies for sustainable livelihoods. The study recommended incorporating informal settlements into urban planning, prioritizing investments in infrastructure like roads, electricity, and water supply. It also suggested involving informal community members in governance, developing flexible policies to support informal businesses, and providing access to financial services and social protections. These strategies would help enhance the economic opportunities and well-being of informal workers, fostering more sustainable urban development.