Ethekwini Municipality

Sets aside R60m for informal traders

Mayor: Cllr Mxolisi Kaunda

eThekwini Municipality, as part of the Municipality’s continuous efforts to support informal businesses, has approved a R60 million budget to build infrastructure for informal traders. This announcement was made during the second (2nd) Informal Economy Indaba, held at Inkosi Albert Luthuli International Convention Centre (Durban ICC) on Wednesday, 02 November 2022.

“The informal traders’ sector is very important to the city’s economy as it contributes over R8 billion, which translates to more than nine percent of the Gross Domestic Product (GDP). This sector is also a major provider of

employment, goods and services for lower income groups,” said Mayor of eThekwini, Cllr Mxolisi Kaunda.

The Indaba, themed 'Embracing Informality', outlined the municipality’s plans to support and recognise the important role the informal sector plays in growing the city’s economy and job creation and was aimed at transforming the economy of the City’s informal sector into an efficient and competitive one.

Cllr. Kaunda, revealed that through a consultative process, the municipality has been able to complete the review of the Informal Economy Policy which was adopted by Council in September. The policy will serve as a guide and support structure for the informal economy sector until 2028.

“At our inaugural Indaba last year, the sector raised several challenges that delayed transformation and growth. As a result, the Indaba adopted specific resolutions, which resulted in the review of the Informal Economy Policy and the provision of adequate infrastructure for informal traders. This policy will go a long way in ensuring the sector is not overlooked when the municipality formulates its business plans and allocates budget for various programmes,” said Mayor Kaunda.

Furthermore, as part of the Municipality’s continuous efforts to support informal businesses adversely affected by the floods earlier this year, the municipality distributed vouchers, ranging from R2 000 to R3 000, to around 150 informal businesses to purchase stock as part of the rebuilding process.

“The handover is the first phase of the eThekwini Flood Relief Programme to benefit approximately 2 000 informal businesses, ranging from fruits and vegetables, clothing and textile, as well as the automotive sector. This was made possible through our collaboration with the Small Enterprise Finance Agency (SEFA) and Small Enterprise Development Agency (SEDA),” added Mayor Kaunda.

“Dream beyond trading in the taxi rank and see yourself in bigger spaces,” said Mayor Kaunda.