Question

How can the informal sector be improved so as to contribute meaningfully to the economy?

Answer 1

Improving the conditions and opportunities for the informal trading sector can lead to overcoming socio-economic hardships associated with unemployment and hunger. 
But, the informal economy can also contribute to growth of the economy.
One way is traders to pay levies and fees for various administration processes, which are ultimately related to the use of public space and amenities. That way the country economy will also have benefit from the informal trading.

Answer 2

The informal sector can include such things as artisanal miners who search for gold in streams and rivers such as in Latinamerica and the co-operative miners in Bolivia. The artisanal miners are being helped by mining engineers to wean them off the use of mercury to separate the gold and introduce a benign type of cyanide to reduce pollution and make the gold they produce more acceptable to the buyers, as an example. They need to form organizations to market their gold and defend their interests. The co-operative miners in Bolivia already have economic assiste eance from the government of Evo Morales such as reduced taxes to help them contribute more to the economy.