Informal business trading a chance for SA to have inclusive economic growth

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TESSA DOOMS | Informal business trading a chance for SA to have inclusive economic growth

These initiatives, though well intended, will not succeed without a radically different approach to informal sector development, as opposed to the push towards formalisation punted as a silver bullet during the Mbeki years.

There are examples, both locally and internationally, of success through a developmental approach. In Kenya, the introduction of Mpesa, a low-tech innovation that enables trade through mobile money has improved the efficiency and market access of informal traders. From tradesmen selling wooden furniture at street markets to a person selling apples on a street corner, Mpesa has made informal business trade more secure by reducing the need for cash.

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I am not sure if we have developed a proper definition of an informal business. I feel our interventions will not be effective if we do not distinguish between a young person selling 100 amagwinya/day (making a weekly profit of R250) & a taxi boss with a fleet of 15 mini-buses.

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