Regulations of informal trade sector has always been problematic

As our country join the world to commemorate the Workers Day tomorrow, we take a look at the regulation of the informal trade sector within the SADC region. In South Africa, the informal sector employs many ‘poor’ people. The experience of the workers in this sector is one of pain, struggle and suffering. As evidence by weekend media reports, the hawkers or informal traders often sufferer harassment at hands of metro police in many cities across the country because of draconian by-laws and policies.     

Assertions that suggest that informal traders do not want regulations should be examined with caution. From interactions with traders, what we are hearing is that traders are opposed to the common practice where policies are made in their name, yet they have not be part of the formulation processes. What is termed as “inclusivity” in countries such as South Africa, which have begun to legislate informal trade is infact turning out to be a fallacy. It pretends that traders are consulted whilst on reality they have just be used to rubber stamp decisions that have been taken elsewhere. The study that was carried out by ESSET in 2011 found that many cities that have informal trading policies in South Africa use consultations simply as a “procedural requirement for ticking the box”.

Further, the challenge by traders is that regional policies that are aimed at addressing poverty fail to recognise informal trade. Like other poverty related policies, regional trade policies are geared towards big businesses. Failure to come up with policies that are in sync with the realities of cross border traders in this case discriminates against them. The same policy measures that are applied to big bussiness are also used for cross border traders and yet their operations are at different levels. This practice does not only reflect the unjust nature of our regional policies but also highlights contradictions in our policy regime. Whilst the sector is not officially recognised, the reality is that SADC generates revenue from cross border traders through duties and tariffs. In fact, it is suggested that informal cross border trade alone contributes an average of over US$17.6 billion per year in the region. Failure to recognise cross border traders as part of the bigger regional strategy also undermines even the very developmental agenda of the SADC.

The informal traders within the SADC region have undertaken various initiatives to strengthen their sector and ensure unity in order to challenge their status quo. Amongst others, this include establishment of the SADC Solidarity Network of Informal Traders in 2011. One of the goals of this network is to initiate and promote solidarity campaigns that are aimed at fighting injustices perpetrated against informal traders. Together with various social justice partners the network embarked on a Campaign against the Sexual and Economic violence of informal traders within the five SADC countries. Some abstract from the Memorandum presented by the network to the Office of the Deputy Minister of Trade and Industry in Pretoria in December 2011 read:  

“We believe that the Department of Trade and Industry (DTI) has a critical role to play in formulation of regulations and trade. We have approached the DTI because of the  observation that policy makers often react negatively to the informal trade sector. We believe that the DTI should play a guiding role in developing of appropriate policies, laws and regulations which promote productivity and improve the working conditions of those in the informal trade sector. We are relying on the DTI to lead policy and institutional reforms that will create an enabling environment for trade among traders within the SADC countries”.