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INFORMAL ECONOMY

INFORMAL ECONOMY. 2012. SYNOPSIS. uMhlathuze Municipality encompasses Richards Bay, Empangeni, eSikhaleni, eNgwelezane, eNseleni, Vulindlela, KwaDUBE, Madlebe, KwaKhoza, KwaMkhwanazi. It has an unemployment rate of 38% and low levels of education and skills (IDP, Statistics SA).

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INFORMAL ECONOMY

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  1. INFORMAL ECONOMY 2012

  2. SYNOPSIS uMhlathuze Municipality encompasses Richards Bay, Empangeni, eSikhaleni, eNgwelezane, eNseleni, Vulindlela, KwaDUBE, Madlebe, KwaKhoza, KwaMkhwanazi. It has an unemployment rate of 38% and low levels of education and skills (IDP, Statistics SA)

  3. ECONOMIC DEVELOPMENT FOCUS First Economy Formal Economy Second / Informal Economy The informal sector is economic activity that is neither taxed nor monitored by a government

  4. It costs approximately R20 million to create a job in big business and R20,000 for small business, and a Negligible amount for informal business

  5. INFORMAL ECONOMY uMhlathuze Municipality has approximately 1, 800 Informal Traders, trading in the following fields: 1. Street or curbside trading2. Trading in pedestrian malls3. Markets4. Trading at transport intersections5. Trading in Public Open Space6. Mobile Traders, includes trading from caravans, bakkies, trailers and containers7. Special events8. Roadside mechanics9. Car wash10. Hair dressers

  6. Generally, informal traders locate at localities where there are high volumes of people or activity at public places or a high number of less affluent households in the traditional “townships” in areas of private land ownership.

  7. AREAS OF TRADE Richards Bay CBD:Taxi CityCheckers MarketsEsikhaleni Shopping Centres:Ntokozweni Esikhaleni MalleNseleni: eNseleni RankMeerensee Suburban Mall:LAC CentreAlkanstrand Beach Front

  8. AREAS OF TRADE Empangeni CBD:Empangeni Rail-A RankCommercial StreetLot 63B RankBiyela Street Union StreetMaxwell StreetNgwelezane:Ngwelezane HospitalNgwelezane Taxi Rank

  9. Provincial Informal Trade Policy, Municipal Bylaws, Informal Trade Policy Institutional Arrangements for Informal Trading: Business Support, Markets & Tourism, Traffic Services, and Environmental Health INFORMAL TRADING REGULATION

  10. ROLE OF BUSINESS SUPPORT, MARKETS & TOURISM • Business Support markets and Tourism is a unit under the City Development Cluster. • The sub-unit Markets is responsible for coordinating and monitoring of the Informal Economy actors within the city. • Maintain and update a database of Informal Traders • Conduct a needs analysis • Plan relevant interventions and source funding to assist informal traders, e.g.: Infrastructure upgrade, or new infrastructure

  11. …ROLE OF BUSINESS SUPPORT, MARKETS & TOURISM • Provide basic business training, markets / bulk purchasing, etc. for Informal Traders • Issue of Informal Trading Permits / Renewals • Since its inception in 2011 (The sub-unit Markets) has partnered with financial institutions such as ABSA Bank and Standard Bank in offering Financial Literacy and Business Management Skills training.With the assistance of Council’s Spatial Planning the Unit is in the process of identifying additional sites to be demarcated for trading • Compiled and Submitted Business Plans for infrastructure Development to COGTA in 2012 for the construction of 250 Trading Stalls • Currently reviewing the Informal Trading Policy to align with Provincial Policy

  12. ROLE OF… • TRAFFIC UNIT • Routine Inspections, • Enforcement of Council bylaws • ENVIRONMENTAL HEALTH UNIT • Routine Inspections • Training in food handling and housekeeping issues

  13. CHALLENGES • BUSINESS SUPPORT, MARKETS & TOURISM • There is a large number of Informal Traders, and currently there are resisting the movement to the formal sector, because of stringent regulation and high cost of overheads. • Insufficient manpower in the Unit, even though positions have been created, due to budgetary constraints they remain unfilled. • TRAFFIC UNIT • There are currently 5 Nuisance Officers, this is not sufficient for the number of traders (1,800), • No follow up when transgressions are reported,

  14. CHALLENGES • …TRAFFIC UNIT • No follow up or consequences when fines issued are unpaid • No consequences for repeat offenders • ENVIRONMENTAL HEALTH UNIT • Health Inspectors not conducting routine inspections frequently • No follow up on complaints received

  15. WAY FORWARD • BUSINESS SUPPORT, MARKETS &TOURISM • Design an evaluation tool to monitor Traders and determine readiness levels for graduation to the Formal Sector, • Draw up and implement a mentorship programme for Traders that are ready to graduate to the Formal Sector. • Constantly update the database of Traders • Filling of the vacant positions, at least one position per financial year.

  16. WAY FORWARD • TRAFFIC UNIT • Additional Nuisance officers required, as the number of Informal Traders is high, and it is growing annually. • ENVIRONMENTAL HEALTH UNIT • Routine Inspections to be frequent, and • transgressors to be reported to the Traffic Unit, and follow up be done fortnightly to ensure compliance

  17. CONTACT DETAILS • Business Support • 035 907 5417 • Informal Trading • 035 907 5430 • Tourism • 035 907 5614 • Investment Promotion • 035 907 5435

  18. THANK YOU

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