Housing in Southern Africa December 2015

Infrastructure & Mixed Use

Informal sector 11,3% of city’s workforce The latest Economic Performance Indicators for Cape Town (EPIC) report underscores the contribution of the informal sector to the economy.

T he City of Cape Town estimates that the informal sector income has contributed to alleviating poverty, reducing the city’s poverty rate from 25,1% to 20,6%. The EPIC report states that 11,3% or 161 000 individuals in the work force are em- ployed in the informal sector. The City’s Mayoral Committee Member for Tourism, Events and Eco- nomic Development, Garreth Bloor said, “While almost 40% of informal sector workers are employed in the wholesale and retail business sector, a significant proportion of workers are also engaged in manufacturing (10,2%), construction (13,1%), finan- cial services (10,9%) and community services (16,9%). “The informal sector is diverse and spatially specialised. Products changing hands are often specific to the geographical area where a trader is located. For example at the Strand Jetty, the focus of trade is on accessories, which differs from the focus at the Khayelitsha taxi rank where locally manufactured clothes are sold. In comparison, the primary products traded at the Wynberg Sta- tion is food,” said Bloor. He notes that if the informal sec- tor was viewed as a conventional economic sector and based on a conservative estimate of about 10% of the workforce, it would be the fifth largest sector. ‘When we look at the bigger picture and at the economy

in its entirety, these numbers are testimony to the importance of the informal sector as a source of em- ployment in Cape Town. While we are working towards creating a more conducive environment for informal trading, there are many more op- portunities for us to make this an even more lucrative sector. We have taken cognisance of concerns raised by traders and are alreadyworking on solutions to facilitate a smooth entry into the informal economy.” The City’s Economic Development Department is currently conduct- ing round-table discussions with informal traders to work with them in finding solutions to their areas of concern. Through the Small Business Sup- port Office, established to promote entrepreneurship and business- driven job placements, the City has helped business people find themost appropriate support service from a network of over 90 business develop- ment organisations. This prevents entrepreneurs from wasting time, energy and money approaching the wrong support organisations, service providers or paying for services that are freely available or partly subsi- dised,” said Bloor. ■

December 2015