“Approaches to Municipal
Management of the informal
Economy: Hibiscus Coast: Case
Study
By
Siyabonga Zama
Directorate of Economic Development
Hibiscus Coast Municipality
Presentation Outline
• Hibiscus Coast
• Informal Trade HCM Perspective
• Integration of Informal Economy
• Types of Informal Trade in HCM
• Informal Economy Regulatory
Environment
• Challenges
• Recommendations
•
HIBISCUS COUAST
MUNICIPALITY
65 Km Coastal Belt
21 Beaches
7 Blue Flag Beaches
Prime Tourist Destination
+80% Rural
20% Urban Contributes 80% towards the
economy of the municipality
Informal Economy HCM
Perspective
Refers to economic activities that are not
egulated in terms of the laws applicable to
he formal sector.
Trading in goods and services in designated
areas (Informal Trading Areas)
Operators in the second economy are
survivalist in nature
Source of employment for most rural, periurban communities
Integration Of The Informal Economy To
The Formal Economy
• Second economy cannot be formalized
• Create a regulated environment
• Alignment of activities with the activities in the formal
sector especially tourism i.e. major events, business
retention programs
• Ensuring on going partnerships with organized
business and tourism body.
• Form part of the LED Strategy and SMME’
Development Plan
Types of informal Trade
Beach Traders
Street Trading
Salons
Kitchens
Car guides
Bovine heads traders
Mobile Traders etc.
Regulatory Environment
nformal Trade By Laws
nformal Trade Policy
nformal Trade Registration Committee
nformal Trade Areas
Enforcement
Challenges of the Informal
Economy
Second Economy is an unfunded mandate
Lack of Infrastructure for informal traders
Lack of adequate infrastructure for food
raders ( trading in unsafe enveronment)
Lack of financial literacy
Capacity to provide support
Financial Support to informal Traders
Continue…
Growing number of people entering the
second economy e.g. our African brothers
Enforcement
Planning considerations
Capacity of the informal Traders Chambers
at a local level
Chambers VS prior existing associations.
Recommendations
Provisions of infrastructure in the designated
informal trading areas.
Developing generic support systems
Financial support to informal traders
Financial Literacy Training
Local municipality based research initiatives
Provide capacity to municipalities : human and
financial resources
CONTINUE…..
• Mainstreaming into the existing value chain
• Planning considerations
Conclusion
• Informal economy remain the source of
employment for the poor
• Any support to municipalities will enable
municipalities to cope with the growing number
of people entering the sector daily
NGIYABONGA
THANK YOU