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Informal economic livelihood is an essential defining characteristic of economic relations within and across African countries. The dominant approach towards Africa's growing informal economies has been the formalising of informal economic livelihoods as catalyst for achieving sustainable local development. However, such approach has only pushed informal actors further deep into informality as they were theorised or created based on the experiences of Europe and not those of Africa. Using the desk review method, this paper revealed the historical trajectories and approaches to formalisation of informal economic activities in Egypt and Mozambique, and the need for these approaches to be carefully rethought and reshaped to accommodate informal livelihoods and sustain local development. Egypt and Mozambique's informal sectors are born out of persistent poverty and unemployment, weak governance and unpredictable socio-economic climate. Attempts by governments and development actors to address the persistent challenges confronting their informal sectors should be in line with conditions existing in both countries.