Informality is a pervasive and complex issue. The impact of the COVID-19 pandemic on the informal sector has raised the urgency of tackling issues associated with informality. Meanwhile, the advent of digitalisation has expanded the policy options available to governments in overcoming varied challenges, including potentially informality.

This policy brief explores the intersections between informality and digitalisation. It highlights the potential role of digitalisation in addressing issues related to informality, points out the challenges of digitalisation, and offers a set of policy recommendations as policymakers look to better harness digitalisation to tackle informality.