This research note forms part of an on‐going study on the informal sector entitled ‘A quantitative and qualitative assessment of the informal sector’. Attention is directed here at the employment and income generating capacity of informal sector activities in Southern Africa. A need for data revealing this potential contribution of the informal sector exists because no country‐wide study has so far been conducted. The note is published in the expectation that it will generate comments which could provide added insight on an important aspect of development in Southern Africa.