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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.
■
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.
December 2015
Infrastructure & Mixed Use