R120m boost for city’s informal economy

The city will be investing R120 million over the next three financial years to build and upgrade infrastructure for the informal economy. The chairman of the Economic Development and Planning committee, Thembi Ntuli said they would intensify support for the informal economy sector and have already started with developments in KwaMashu, Folweni and Blue Lagoon.

Mr Ntuli revealed his plans at the two-day Informal Economy Summit recently at the Inkosi Albert Luthuli International Convention Centre in Durban.

He said the summit aimed to provide dialogue between traders, informal economy structures and the municipality to strengthen relations. The municipality also used the opportunity to present programmes and plans aimed at developing the sector.

Mr Ntuli said these developments would take the form of, among others, business hives, retail markets, traditional herbs and medicine market, a mealie cooker facility, buyback centres (for cardboard recycling), food court markets, shelters, kiosks, container parks and storage facilities for traders’ goods, as well as demarcated sites along the street pavements.

“Several developments are under way across the city, with some anticipated to be completed soon. This sector is recognised as one of the main contributors to employment creation in the country which is why we continue to invest in this sector,” said Mr Ntuli.

“The informal economy sector contributes R15 billion to the city’s economy annually. This translates to more than 10% of the city’s Gross Domestic Product (GDP). This sector has been a major provider of employment, goods and services for lower income groups.”

Mr Ntuli said the municipality would issue up to 4 000 street trading permits by 2024 to create job opportunities. This process is already under way, he said, as they had recently advertised vacant trading sites and received overwhelming feedback.

They are also upgrading a building at 126 Johannes Nkosi Road to accommodate local entrepreneurs and informal traders conducting various business activities.

Mr Ntuli was accompanied by deputy chairperson of the committee Phili Ndlovu and the committee’s whip Nomvula Puleng Hlomuka who encouraged traders to meet the municipality halfway by operating with valid trading permit, to comply with council approved policies, to clean-up their working spaces and participate in clean-up campaigns organised by city officials.