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The role of informal settlements in human development remains contested in urban studies literature. For instance, some existing studies view urban informal settlements as hotspots of social unrest, squalor and precarious residential environments (poverty traps); while others perceive them as places where the poor become resourceful, ingenious, and develop necessary skills to navigate urban life (pathways out of poverty). The absence of systematic evidence on the nexus between informal settlements and human progress hinder sound urban policy practices. This paper examines the role of informal settlements in human development focusing on Hopley, Hatcliffe Extension and Epworth Ward 7–Harare’s three largest informal settlements. The study combines surveys, in-depth interviews, and focus group discussions with selected residents from the three neighborhoods. The study reveals that despite feeling ‘trapped’ in conditions of precarious, overcrowded, and insecure housing, coupled with discursive territorial stigmatization, some informal settlement residents are hopeful that their settlements will eventually improve. The ambivalence of Harare’s urban policy toward informal settlements must be replaced by a more positive approach to improve the livelihoods of people living in these neighborhoods.

Trapped or not trapped? An empirical investigation into the lived experiences of the urban poor in Harare’s selected informal settlements