Abstract
This study examines the critical relationship between economic informality and urban planning in Katlehong, South Africa, addressing a significant gap in understanding how informal economic activities interact with and impact formal urban planning processes. The research is crucial for developing more inclusive and effective urban development strategies in rapidly urbanising contexts characterised by high levels of economic informality. The study employs a qualitative case study approach, utilising semi-structured interviews with seven informal traders and one municipal official. The findings reveal a diverse and adaptable informal economy deeply embedded in Katlehong's urban fabric, with activities concentrated around transport hubs and major thoroughfares. The research identified significant economic contributions of informal activities to local livelihoods and community resilience, alongside challenges related to infrastructure strain and regulatory inconsistencies. Significant barriers to integration include outdated by-laws, lack of inter-departmental coordination, and exclusion of informal actors from planning processes. Opportunities for integration include participatory planning approaches, flexible regulatory frameworks, and targeted infrastructure investments. The study recommends implementing participatory mapping initiatives, developing flexible trading spaces, revising local by-laws, and establishing a dedicated informal economic unit within the local sphere of government. The key words from this study are economic informality, urban planning, Katlehong, informal trading, and spatial justice. This study calls for an integrated theory of urban informality that synthesises economic, spatial, and social perspectives. It emphasises the need for a paradigm shift in urban planning approaches to better accommodate and leverage the dynamism of informal economies, promoting more inclusive and resilient urban futures.