The South African informal sector’s socio-economic exclusion from basic service provisions: A critique of Buffalo City Metropolitan Municipality’s approach to the informal sector

Abstract

This study explores the exclusion of informal micro-enterprises from the provision of basic urban infrastructure services in Duncan Village in East London, South Africa. It focuses on the informal food sector, which is dominated by women who are often held back from participating in economic activities that are more productive, as well as from social and political functions. Basic urban infrastructures, such as trading shelters with water and electricity connections provided by municipalities, are often expensive and most informal street traders find it difficult to access them. This study examines the energy struggles of the informal street food sector and its engagement with local government on issues of inclusivity on policies regulating the sector. In-depth, semi-structured interviews and focus groups were conducted with 40 participants in the informal street food sector in Duncan Village. The findings reveal the lack of energy transition in the informal street food sector, because of its heavy reliance on low-quality fuels. Unreliable and expensive energy services force informal street food enterprises into using a limited range of energy sources. The findings also reveal that the relationship between the municipality and the informal street traders is one of exclusion and negligence. It is therefore suggested that government needs to recognise and value the informal sector and livelihoods of those involved in this sector, to take into account their needs, and engage with them when designing and implementing policies that regulate the sector.

Strengthening Urban Informal Trading and Improving the Health of Vendors: An Integrated Management Model

“…In the continuous monitoring and additional services provision: The current study showed that there is an impact on the usage of dirty cooking fuels and the health of vendors. Masuku and Nzewi (2021) stated that we keep in mind that informal food enterprises occasionally use traditional sources of energy, such as wood and charcoal, not because they lack access to electricity, but rather because of the type of product they are preparing [ 30 ]. The lack of access to modern and efficient energy sources has a negative impact on the user’s health, and using wood and charcoal can cause respiratory diseases, moreover, there is a safety aspect of the usage of an open fire, as various markets have burnt over the years, hence the need for the monitoring and empowerment of vendors.…”

Uber's digital labour platform and labour relations in South Africa

“…In South Africa, the informal economy, which currently includes Uber DLP, also has a significant share of total employment, with over 2.5 million people making up 20% of total employment in the country, providing a means of subsistence and income for millions of workers and business owners, and contributing about 5.1% of gross domestic product (GDP) (Masuku & Nzewi, 2021). As we have seen, Uber driving is treated as informal in South Africa because it is not yet covered by labour regulations and the drivers are classified as independent contractors.…”

How to engage informal midstream agribusiness in enhancing food system outcomes : what we know and what we need to know better

“…Despite their important role in food systems, especially for the food and nutrition security and livelihoods of lower-income individuals, informal businesses face many challenges. According to literature, these can be very diverse -including exclusion from basic service provisions, such as trading shelters with water and electricity connections (Masuku and Nzewi, 2021) and access to formal sources of business finance; competition from formal businesses in access to public services and infrastructure (Battersby et al, 2016); lack of access to education and training, resulting in financial illiteracy, vulnerability to bribe and excessive taxation; and lack of government support in times of covariate shocks, such as the COVID-19 pandemic and Ebola (Battersby, 2020;Guven et al, 2021;Rukasha et al, 2021).…”