Based on research conducted in 1999/2000, this paper examines the vibrant informal sector cross-border trade between South Africa and Mozambique. It provides an overview of the small and medium entrepreneurs involved in this trade as well as the kinds and volumes of goods that they carry across the border. It suggests that the use of the term 'informal' to describe this trade may be misleading as it obscures the multiple linkages between the formal and informal sectors in both countries. Furthermore, it implies a degree of illegality and non-regulation which are not always present. The paper concludes by questioning the policy and regulatory frameworks within which these small, medium and micro enterprises (SMMEs) operate. Copyright Royal Dutch Geographical Society 2000.