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This study examines the relationship between informal sector practices and people's socio-economic status inMagharibi District-Zanzibar. Through a descriptive correlational design, data were collected from 230respondents across five sheihas. The findings reveal a significant relationship between informal sector practicesand socio-economic status, with the majority of respondents earning their livelihood through informal sectors.Recommendations include formal training for participants and government collaboration to strengthen informalbusinesses, integrate them into formal sectors, and provide policy support for socio-economic development.Keywords: Economic empowerment, formal sector, informal sector, social protection, socioeconomic status.