Glossary term
Informal Economy
Economic activity that is not formally registered or taxed, from street vending to small workshops, which employs a large share of people in many regions. Digital tools can help formalise and grow it.
Why it matters
Informal Economy shapes how funding, policy and infrastructure reach the communities that need them most. In the Global South, where access to compute, devices and training is uneven, getting this vocabulary right is not academic — it is the difference between watching the AI shift and taking part in it.
In context
We use Informal Economy in the global south & development part of our work. Students meet the concept in workshops, mentors reference it while reviewing projects, and partners see it in the reporting we send after every programme. Keeping the definition plain means a first-year student and a ministry official can hold the same conversation.
How Tembi Labs uses it
Informal Economy is not left on a slide. Our AI hackathons put concepts to work within hours: teams pick a local problem, use AI tools to prototype, and present something running by Sunday. It frames how we choose partner campuses and measure whether a programme genuinely helped.
At a Tembi Labs hackathon, understanding Informal Economy means a student can move from asking "what is this?" to shipping a working prototype in a weekend — and walk away with a portfolio piece, a mentor network and a credible path into tech work.
Want to see Informal Economy applied on campus?
Book a call and we will walk you through how a Tembi Labs AI hackathon or computer room works at your university.