Transcript Approaches to Municipal Management of the Informal

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)
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
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
INFORMAL ECONOMY
uMhlathuze Municipality has approximately 1, 800 Informal
Traders, trading in the following fields:
1. Street or curbside trading
2. Trading in pedestrian malls
3. Markets
4. Trading at transport intersections
5. Trading in Public Open Space
6. Mobile Traders, includes trading from caravans,
bakkies, trailers and containers
7. Special events
8. Roadside mechanics
9. Car wash
10. Hair dressers
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.
AREAS OF TRADE
Richards Bay CBD:
Taxi City
Checkers Markets
Esikhaleni Shopping Centres:
Ntokozweni
Esikhaleni Mall
eNseleni:
eNseleni Rank
Meerensee Suburban Mall:
LAC Centre
Alkanstrand Beach Front
AREAS OF TRADE
Empangeni CBD:
Empangeni Rail-A Rank
Commercial Street
Lot 63
B Rank
Biyela Street
Union Street
Maxwell Street
Ngwelezane:
Ngwelezane Hospital
Ngwelezane Taxi Rank
INFORMAL TRADING REGULATION
•
Provincial Informal Trade Policy, Municipal
Bylaws, Informal Trade Policy
Institutional Arrangements for Informal
Trading:
Business Support, Markets & Tourism,
Traffic Services, and
Environmental Health
•
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
…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
ROLE OF…
TRAFFIC UNIT
•
Routine Inspections,
•
Enforcement of Council bylaws
ENVIRONMENTAL HEALTH UNIT
•
Routine Inspections
•
Training in food handling and housekeeping issues
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,
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
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.
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
CONTACT DETAILS
•
Business Support
•
035 907 5417
•
Informal Trading
•
035 907 5430
•
Tourism
•
035 907 5614
•
Investment Promotion
•
035 907 5435
THANK YOU