Although informal trade contributes almost 10% of the country’s GDP, the government does little to support the thousands of South Africans who make a living in this sector, even acting against them in some cases.
It is a sight familiar to the South African commuter. A woman sits behind a salvaged plastic table on the pavement, selling neatly presented single cigarettes, loose sweets and small packets of corn chips to passers-by on foot. Or a lively inner-city market, where traders of fruit and vegetables tout their produce alongside a neighbouring cobbler repairing the worn heels of workers’ shoes who spend hours on their feet.
This is South Africa’s often overlooked informal sector. And, despite it contributing 8% of SA’s GDP, supporting 27% of all working people and providing goods and services to millions of people on a daily basis, the informal sector consistently fails to receive the same degree of local government protection enjoyed by formal businesses.
As a result, an assumption is frequently made that the informal sector is not legally protected, and that informal traders do not have any rights to trade.
“This is simply not true,” states the Socio-Economic Rights Institute of South Africa (Seri). “Informal workers enjoy the same constitutional rights as everybody living in South Africa. They have a right to a local government that works, which provides basic services and which promotes social and economic development.”
Informal importance
Seri researcher Dennis Webster tells finweek that definitions of informal work and the informal sector in SA remain vague and contested.
“Generally speaking, however, an informal street trader is a business person who relies on public space to make their living, and employs very few, if any, people at their business. These businesses, which provide a broad spectrum of goods and services, generally to poor and working-class pedestrians, are characteristically not as regulated or protected by the state as ‘formal’ businesses,” he explains.
هذه القصة مأخوذة من طبعة 4 May 2017 من Finweek English.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة 4 May 2017 من Finweek English.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
THE HEALTH OF SA'S MEDICAL SCHEMES
As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.
The effect of Gilbertson's departure
With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.
Making money from music
Why investors are increasingly drawn to the music industry.
Conviction is key
Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.
The post-pandemic toolkit
How CFOs can use technology to support growth.
Big city living exodus
Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.
Big compact, big value
Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.
On barriers to entry
There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.
Fear and greed in one index
To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.
Africa's largest data centre facility coming soon
Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.