The informal trading market in South Africa is made up of individuals from the l

The informal trading market in South Africa is made up of individuals from the low – income population group.

In South Africa a smallest number of individuals are considered a high – income class. Higher income levels of a few individuals, widen the income gaps everyday within this beautiful country. Such differences have a negative effect on communication.

Informal traders rely on the income from daily sales to make ends meet. Without sales a-day : hunger would pervade some households. Even worse, if the individual does not fall within the grant recipient age group of the South African population.

• Individuals over the child support grants age limit / cap.
• less than the old age grant age limit / cap.
• unemployed or receive no disability allowance ( grant ).

The only source of income they rely upon is business income (informal trading).

Some unusual form of informal trading is the one that lacks consistency. Consistent informal traders were given an option to register with the South African government as such. Carrying on the business of selling goods / services in communities , more than three times a week would qualify an individual an informal trader and to register for a trading permit.

During the COVID 19 pandemic, informal business owners were the first ones to be taken off the market and off the streets. Leaving some with no business income. After the pandemic a few were able to recover because they were Government grant recipients. These entrepreneurs were smart enough to recover their informal dealings (undertakings) by using the grant as capital. Already registered informal traders were perhaps at a better position than novice entrepreneurs.

Generally speaking most South Africans rely on grant, whether it’s the

• child support grant,
• disability grant or the
• old age grant.

Families with such individuals would make a permissible living even though the amounts received are below the breadline levels.

THE PACKS (TROUBLES) OF INTRODUCING PERMITS

Business is important to those who know business: losing a day of trade could mean losing a million dollar client. Not qualifying for a permit could mean losing a day of trade.

Informal traders are vulnerable – it could be best to let those who experienced apartheid or are anxious to ask for assistance first. The individuals who experienced apartheid are always weary of too much Government involvement. The memory of too much regulation could trigger mental health conditions (fear). The AAE can find (unthreatening approach, avoiding similarities to the apartheid regime) ways of assessing for these permits and permit violations as well as applications.

BENEFITS OF INTRODUCING PERMITS IN THE INFORMAL
SECTOR

Having permits has a lot of benefits. The AAE has a mentoring program which would support even those who are not consistent traders (sellers of goods, less than three times a week) to set-up a more permanent shop.
The South African Government assists informal traders in South Africa by having them registered for permits first, inorder to regulate this market. Government regulations ranges from the introduction of

• Informal trading policy, • Informal trading tariffs, • Rules for informal food traders

Such cumbersome documentation for people who were previously unemployed and perhaps uneducated in matters of Policy violations, and tariffs payments on money already budgeted for essentials – and even not quite enough (money) yet. Perhaps essentials could be provided by Government and then tax the business income.
Perhaps during tariff collection, essential needs assessment / distribution can be done at the same time. Human nature inclines some towards always taking and not giving. Paying taxes /tariffs is for those above a certain income level. To ensure that all informal traders are at the same level (standard of living), Government would need to provide them with essentials first and not force these trying individuals (entrepreneurs) out of market / business. For it was such a need (need for essentials) that drove them into trading and not to crime.

1. How are informal businesses taken care of in your respective countries ?

2. Are you able / (allowed) to just go outside and sell anything you deem sellable and that you do not need or cannot use ?

3. Do you justify this scheme of profit making to be legit and thus permissible ?

4. Do you think the Government should follow this kind of profit making as well and not just the informal traders ?

5. How do you envision AAE supporting registered informal traders ??

6. Is there rewards / benefits for registered informal traders ?

7. Do you think informal traders feel forced or abused ?

8. Are informal traders Happy ?

9. What can be done with violators of the informal trade regulations ??