Informal Sector In South Africa Research Articles

Trading permits and informal entrepreneurship: evidence from South Africa

Abstract We present an empirical analysis of the relationship between trading permits, informal entrepreneurship and unemployment. We exploit a unique regulatory framework of the informal sector in South Africa to estimate the effects of trading permits in the informal sector using individual panel data. To provide a causal effect of these regulations, we apply a difference-in-difference strategy. Trading permits decreased informal entrepreneurship and informal trading by respectively 11.5 per cent and 9.6 per cent for those who were working in the informal sector. We investigate potential indirect effects on formal entrepreneurship, unemployment, and informal wage employment. The adoption of trading permits in the informal sector significantly increases the probability of being unemployed by 4.5 per cent and significantly decreases the probability of being informally employed by 15.5 per cent for those who were in the informal sector. The results suggest that a policy increasing the costs of informality might reduce informality but at the cost of rising unemployment.

Negotiating In(security): Agency and Adaptation Among Zimbabwean Migrant Women Working in the Informal Sector in South Africa

The deepening levels of poverty in Zimbabwe have resulted in high numbers of Zimbabwean women migrating to South Africa in the hopes of securing better wages and job security. Most of these migrants end up working in the informal sector with limited income, high levels of insecurity, and a lack of protection against gender-based violence and xenophobia. Regardless of the adversities that these women encounter, they often display resilience and adaptability. Based on semi-structured interviews with 22 Zimbabwean migrant women, this article documents how these migrant women navigated some of the vulnerabilities and challenges they encountered. Instead of always being constrained by different structures of violence, this article unpacks the women’s strategies to ensure their survival.

‘A foreigner is not a person in this country’: xenophobia and the informal sector in South Africa’s secondary cities

South Africa’s major cities are periodically wracked by large-scale xenophobic violence directed at migrants and refugees from other countries. Informal sector businesses and their migrant owners and employees are particularly vulnerable targets during these attacks. Migrant-owned businesses are also targeted on a regular basis in smaller-scale looting and destruction of property. There is now a large literature on the characteristics and causes of xenophobic violence and attitudes in South Africa, most of it based on quantitative and qualitative research in the country’s major metropolitan areas. One of the consequences of big-city xenophobia has been a search for alternative markets and safer spaces by migrants, including relocating to the country’s many smaller urban centres. The question addressed in this paper is whether they are welcomed in these cities and towns or subject to the same kinds of victimization as in large cities. This paper is the first to systematically examine this question by focusing on a group of towns in Limpopo Province and the experiences of migrants in the informal sector there. Through survey evidence and in-depth interviews and focus groups with migrant and South African vendors, the paper demonstrates that xenophobia is also pervasive in these smaller centres, in ways that both echo and differ from that in the large cities. The findings in this paper have broader significance for other countries attempting to deal with the rise of xenophobia.

Pushed to the Margins

Ethiopian immigrants in South Africa are increasingly occupying informal trading space in townships, rural areas and in select central business districts across the country. This article documents the experiences of Ethiopian migrants in the informal sector in South Africa. Theoretically, the article rests on the concept of everyday life. It draws on data from interviews, focus group discussions and observations carried out between October 2020 and September 2021. This signals a period in which everyone was challenged by COVID-19, especially migrants, which compounded the hierarchies of marginality in which Ethiopian migrants in South Africa are situated. Coupled with this, Ethiopian migrants face two broad levels of marginality: firstly, marginality from state policies and the communities in which they reside and work; and secondly, marginality from gendered and class-based inequalities within the Ethiopian community. The structural and hegemonic barriers range from lack of documentation to regularize residency status and business respectively, extortion by gangs in the name of “protection fee,” exploitation by local level state/community structures and women restricted to female roles. By the same token, we see the creativity and ingenuity of this community, that focuses on their personhood, to make sense of their lives and create conditions to live meaningful lives. This article explores some of the core contestations emerging out of these twin marginalities the ways in which Ethiopian migrants structure their lives and livelihoods in South Africa.

The spatial and social logic of the Minibus Taxi network: how access may support social inclusion in Cape Town, South Africa

ABSTRACT With the adoption of the Sustainable Development Goals (SDGs) by the United Nations in 2015, aspirations towards creating more inclusive and sustainable cities became global standards of urban development. This presents an almighty challenge for policymakers and urban planners, particularly in the rapidly developing cities of the global South, which have historically been known to possess higher levels of segregation and inequality. This article focuses on an analysis of patterns of accessibility, created through different systems of transport, in relation to potential opportunities they may provide for interaction between different social and racial urban population groups, using Cape Town in South Africa, as the primary case study. It examines the relationship between specific social and spatial variables and the geographic positioning of stops and stations of the public Railway, MyCiti Bus Rapid Transit systems and the paratransit, privately-owned Minibus Taxi system. A relational approach was required in order to address both the physical and social aspects of this paper, thus drawing on the discursive and analytical techniques offered by space syntax. The Minibus Taxi system, born out of the informal sector in South Africa, has widely been stigmatised as “chaotic” and “haphazard”, however the empirical evidence shown by this analysis of accessibility, suggests that it possesses an inner spatial and social logic.

The Informal Sector and Economic Growth of South Africa and Nigeria: A Comparative Systematic Review

The informal sector is an integral part of several sub-Saharan African (SSA) countries and plays a key role in the economic growth of these countries. This article used a comparative systematic review to explore the factors that act as drivers to informality in South Africa (SA) and Nigeria, the challenges that impede the growth dynamics of the informal sector, the dominant subsectors, and policy initiatives targeting informal sector providers. A systematic search of Google Scholar, Scopus, ResearchGate was performed together with secondary data collated from grey literature. Using Boolean string search protocols facilitated the elucidation of research questions (RQs) raised in this study. An inclusion and exclusion criteria became necessary for rigour, comprehensiveness and limitation of publication bias. The data collated from thirty-one (31) primary studies (17 for SA and 14 for Nigeria) revealed that unemployment, income disparity among citizens, excessive tax burdens, excessive bureaucratic hurdles from government, inflationary tendencies, poor corruption control, GDP per capita, and lack of social protection survival tendencies all act as drivers to the informal sector in SA and Nigeria. Several challenges are given for both economies and policy incentives that might help sustain and improve the informal sector in these two countries.

Balancing care and work roles among women working in the informal sector in South Africa

Despite the prevalence of the informal sector in many developing countries, the care challenges of workers in this sector remain largely unexplored. This article contributes to closing this research gap by exploring the work–family fit of women working in the informal sector in South Africa using data from a nationally representative survey. The results reveal that like their formal sector counterparts, women working in the informal sector have poor work–family fit and hence require similar support and attention. The article highlights the underlying factors and concludes by underscoring the need for context-specific policies and further research.

Society 4.0 applied in Africa: Advancing the social impact of technology

Global technological advancement as aligned to the fourth industrial revolution supports various first world development needs. Within the African context, and specifically in developing countries like South Africa (SA), the benefit from technology innovation can significantly impact on socio-economic issues like unemployment and skills development. Technological development is identified as a crucial driver for new growth and a means to develop and outperform global competitors. Human capital, specifically young people, supports inclusive and sustainable economic growth. South Africa as per current classification, remains a twofold economy with among the greatest inequality rates in the world, continuing both disparity and segregation. Employment remains at more than one in three youth unemployed. A group of academics and commercial partners working across disciplines collaborate to create opportunities for local young people to participate in research and data gathering at the University of Johannesburg (UJ). The need for the enablement of technology especially among the youth of the African society has initiated a research question, which determines whether technological instruments can be developed and deployed in Africa to facilitate youth. A transformative but collaborative (researcher and community team), approach is the focus with youth employment as a key objective. Collaboration with local communities to gather household and sector specific data, UJ mobilizes cross-disciplinary research networks to drive social innovation. Joining strategies and technologies to develop appropriate, smart digital tools to support technological enablement for survey data collection in the informal sector in South Africa. The team develop a research methodology and digital tools, which enables geographic information systems (GIS) survey data collection over large geographical areas, at scale, which relies on rigorous data quality controls. Providing various opportunities to local young people in the digital, gig-economy through data collection and digital networking. The major perspective of this paper is to study the aspect of technology and the way it empowers young people on the African continent. The paper presents the design, evolution and results of the digital platform as developed for two major South African Projects.

The Challenges Facing Informal Traders in the Hilbrow Area of Johannesburg

The informal sector in South Africa can play a pivotal role in alleviating the high levels of unemployment due to the potential for increased employment creation that it has exhibited in the Hilbrow area of Johannesburg. According to Schraader (2007:2), a series of linked constraints hamper informal traders to develop in South Africa. Insufficient capital, shortage of qualified personnel, government policy, and high transport and power costs cause serious inefficiencies in the informal trade sector.

MONEY AND SOCIALITY IN SOUTH AFRICA'S INFORMAL ECONOMY

ABSTRACTThis article examines the interplay of agency, culture and context in order to consider the social embeddedness of money and trade at the margins of South Africa's economy. Focusing on small-scale, survivalist informal enterprise operators, it draws on socio-cultural analysis to explore the social dynamics involved in generating and managing wealth. After describing the informal sector in South Africa, the article elucidates the relationship between money and economic informality. First, diverse objectives, typically irreducible to the maximization of profit, animate those in the informal sector and challenge meta-narratives of a ‘great transformation’ towards socially disembedded and depersonalized economic relationships. Second, regimes of economic governance, both state-led and informal, shape the terrain on which informal economic activity occurs in complex and constitutive ways. Third, local idioms and practices of trading, managing money and negotiating social claims similarly configure economic activities. Fourth, and finally, encroaching and often inexorable processes of formalization differentially influence those in the informal sector. The analysis draws on these findings to recapitulate both the ubiquity and centrality of the sociality at the heart of economy, and to examine the particular forms they take in South Africa's informal economy.

Dynamics of trade between the formal sector and informal traders

The informal sector in South Africa is a significant, but not well understood phenomenon. One important question relates to the nature of the relationship between the formal and informal sector. This article uses Porter’s five forces model to interrogate the linkages between informal fruit and vegetable traders in the Natalspruit Market (Ekurhuleni) and their formal suppliers, primarily the Johannesburg Fresh Produce Market. While the threat of new products is low, the street traders’ position is weakened by the threat of new entrants, consumer bargaining power and lack of cooperation among street traders. In relation to supplier power, we conclude that while this varies according to a number of factors, the formal sector is dominant over informal fruit and vegetable sellers in this market. This finding rests primarily on the observation that, because of their fragmentation, the informal traders’ collective buying power is not being used in the same way as large formal retailers of fruit and vegetables to obtain better terms of trade with the formal economy supplier.

An Analysis of Management Functions in the Informal Sector in South Africa

An Analysis of Management Functions in the Informal Sector in South Africa

Day labourers in Pretoria, Windhoek and the United States - a comparison of two capitals and a different world

Purpose: The aim of this paper is to compare the economic dynamics of day labouring in two Southern African capital cities, namely Windhoek and Pretoria, against the background of the experiences of day labourers in a developed country such as the United States. Problem investigated: People waiting at the side of the road, hoping to obtain a piece job for the day, is a typical phenomenon in a situation where people are forced to venture into the informal sector to generate an income. Day labour is a national and international phenomenon that seems to be on the increase. Literature on the similarities and differences across different geographical areas and levels of economic development is limited, however. Approach: For the purpose of this study, day labourers in Pretoria were the subject of a case study which was compared with studies done in Windhoek and the United States during the same period, namely 2003 to 2004. The general demographics of day labourers in these two cities were investigated, as well as their employment history and the income earned. Findings and implications: Day labourers in Pretoria and Windhoek were mainly male, fairly young, generally low skilled, earning low and uncertain levels of income and working under harsh conditions. This corresponds to the demographic characteristics of day labourers in the United States. In both the United States and Southern Africa, day labour pays poorly. It was found that day labourers seldom earn more than the subsistence level of income for the respective countries discussed in this paper. A significant portion of day labourers in Pretoria, Windhoek and the United States previously held formal sector jobs. The biggest difference is to be found in the future prospects of day labourers. The opportunity for day labourers in the United States to make the transition into the formal sector of the economy is far better than for their counterparts in Southern Africa.Value of the research: The paper expands existing knowledge of day labouring as part of the informal labour market. This is important given the significance of the informal sector in South Africa and Africa at large. It provides a comparison between experiences of the same activity in a developed country and in two cities in developing countries, illustrating important similarities and differences in this regard. Conclusion: Day labour is a complex phenomenon, and a number of problems, violations and abuses may be found in this sector of the labour market. In order to address these issues successfully, the particular set of circumstances facing day labourers in different areas must be accounted for.

The dual labour market theory and the informal sector in South Africa

Purpose of the paper: The purpose of this paper is to revisit the dual labour market theory as far as the informal sector in South Africa is concerned. The hypothesis is that the dual labour market theory must be extended in order to be applicable to the informal sector of the South African economy. It is our view that within some informal occupations a further segmentation exists. Problem investigated: Among South Africa ’s grave socio-economic problems, unemployment is one of the most serious and intractable. An increase in informal and self-employment was experienced during the last decades. Traditional dual labour market theory maintains that jobs can be roughly divided into two groups: those with low wages, bad working conditions, unstable employment and little opportunity for advancement; and those with relatively high wages, good working conditions and opportunities for advancement. The problem that confronts researchers is that even within informal employment, further segmentation is possible. Approach: To determine whether the dualism, that described by the dual labour market theory, is also present within the informal sector itself, available data on a typical informal sector activity, namely car guarding, is analysed. This provides the evidence to achieve the objective of this paper. Findings and implications: The case study of car guards confirms that the dual labour market theory can also apply within the informal sector on the condition that it is expanded to make provision for a further segmentation of the periphery sector. This finding presents several important policy implications. A basket of policies is needed to address the problem of unemployment as effectively as possible. Value of the research: The paper provides further knowledge on informal employment in South Africa. This is an area that requires a lot of attention, given the importance of the informal sector in South Africa and Africa at large. It goes further than the traditional implications stemming from the dual labour market theory. Conclusion: The South African labour market is fragmented, consisting of a well-paid formal sector and the periphery that consists of workers in the informal sector, subsistence agriculture and the unemployed. Within the periphery, there is the possibility that a certain degree of dualism exists. The case study of car guards confirms that the dual labour market theory can be extended to make provision for this dualism, even within the informal sector.

Enkele strategieë vir ekonomie se ontwikkeling in die informele sektor

Since 2 February 1990 the pace of change in South Africa has been accelerating on all fronts. One naturally thinks of political development,but this change applies equally to economic development in the black informal sector There is a need for national and local authorities as well as fo r the private sector to play a role in promoting informal business activities. Instead of legislating away the so-called problem, the reality of the economic situation in the informal sector should be recognised and managed in a supportive manner In a changing society high priority should be given to the nurturing of economic growth in the informal sector. The increasing numbers of the unemployed in South Africa, especially in urban areas, necessitates positive steps to deal with the realities of urbanisation and to ease the way in which honest income can be earned through various opportunities in the informal sector A healthy and growing small business in the informal sector is a vital ingredient to ensure widespread employment and income-creation in a market-orientated economy. This sector of the economy tends to be labour-intensive, is competitive by nature and is noted for the ease of entry - thus being a prime training gun d for entrepreneurship. It is absolutely clear that the growing debate surrounding the informal sector in South Africa should be coupled with the application of reformist development strategies throughout the sub-continent. It order to improve the current situation, some specific strategies to achieve social and economic upliftment in the informal part of the economy are identified by the author. Although the informal sector forms an integral part of the economy as a whole, the focal point of this article is the economic role and function of the black population in the informal sector.

THE UNDERDEVELOPMENT OF THE INFORMAL SECTOR: STREET HAWKING IN JOHANNESBURG, SOUTH AFRICA

Within South African studies there has emerged a school of research from below stressing studies of the world of and economic existence of the ordinary or common people in the city. The present paper constitutes an exploration of the historical geography of the urban informal sector in South Africa, investigating the underdevelopment and changing complexion of street trading activities. The roots of a long-established tradition of state anti-street trader policies are examined, and the post-1976 policy shift from repression to tolerance of street traders is highlighted. The pattern of successes and failures of attempts by communities of black hawkers to invade areas ostensibly declared to be white urban space are chronicled.

Recession and the informal sector in South Africa

Despite the recent avalanche of writings investigating the informal sector, scant consideration has been accorded to the impact of an economic recession upon the growth and complexion of the informal sector.The object of this paper is to reflect upon the likely consequences of economic recession upon the South African informal sector in light of the extant international literature. Two different sets of processes are identified as impacting upon the growth and composition of the informal sector. The first suggests that the growth of the informal sector is the consequence of the lack of expansion of the formal sector. The second argues that much of the expansion in the informal sector is directly linked to its integration with formal sector enterprises. Under recessionary conditions, it is suggested that the growth of the informal sector may occur as a refuge from destitution but that the complexion of the informal economy will shift and be dominated by activities of a more ‘socially unacceptable’ nature.

‘Developing’ the Urban Informal Sector in South Africa: The Reformist Paradigm and its Fallacies

Development and ChangeVolume 15, Issue 4 p. 517-550 ‘Developing’ the Urban Informal Sector in South Africa: The Reformist Paradigm and its Fallacies Paul Wellings, Paul Wellings Research Fellow in the Development Studies Unit of the University of Natal, Durban. He has published work on education and regional inequality in Kenya, and development policy in Lesotho where he taught at the National University from 1980to 1982. His current interests include aspects of ‘development’ in the South African bantustans and the political economy of Lesotho.Search for more papers by this authorMichael Sutcliffe, Michael Sutcliffe Lecturer in the Department of Town and Regional Planning at the University of Natal, Durban. His current research includes an analysis of worker– and community–based social movements in South Africa.Search for more papers by this author Paul Wellings, Paul Wellings Research Fellow in the Development Studies Unit of the University of Natal, Durban. He has published work on education and regional inequality in Kenya, and development policy in Lesotho where he taught at the National University from 1980to 1982. His current interests include aspects of ‘development’ in the South African bantustans and the political economy of Lesotho.Search for more papers by this authorMichael Sutcliffe, Michael Sutcliffe Lecturer in the Department of Town and Regional Planning at the University of Natal, Durban. His current research includes an analysis of worker– and community–based social movements in South Africa.Search for more papers by this author First published: October 1984 https://doi.org/10.1111/j.1467-7660.1984.tb00195.xCitations: 25 AboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinked InRedditWechat Citing Literature Volume15, Issue4October 1984Pages 517-550 RelatedInformation

The Absorption of Labor in the Urban Economy: The Case of Developing Countries

Previous articleNext article No AccessThe Absorption of Labor in the Urban Economy: The Case of Developing CountriesJohn Friedmann, and Flora SullivanJohn Friedmann Search for more articles by this author , and Flora Sullivan Search for more articles by this author PDFPDF PLUS Add to favoritesDownload CitationTrack CitationsPermissionsReprints Share onFacebookTwitterLinkedInRedditEmail SectionsMoreDetailsFiguresReferencesCited by Economic Development and Cultural Change Volume 22, Number 3Apr., 1974 Article DOIhttps://doi.org/10.1086/450727 Views: 10Total views on this site Citations: 25Citations are reported from Crossref Copyright 1974 The University of ChicagoPDF download Crossref reports the following articles citing this article:John Friedmann Agropolitan Development (1978), (Sep 2022): 261–292.https://doi.org/10.1007/978-3-030-56398-1_17A. J. Knox, H. Bressers, N. Mohlakoana, J. 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