This week ESSET is holding Consultation with informal Traders in Swaziland and Lesotho

The Ecumenical Service for Socioeconomic Transformation (ESSET) is this week (20-25 May 2012) holding Consultations with informal traders in Swaziland and Lesotho respectively. The aim of the consultation is to reflect together on ways that would strengthen the voice of informal traders in the region. This is part of ongoing processes with traders who are members of the SADC Network of Traders that was established in May 2011. The Network consists of traders from South Africa, Swaziland, Zambia, Zimbabwe and Lesotho. It brings together in-country informal traders and cross-border traders with the aim to fight their struggles with a united voice.

The consultation process amongst others will involve public meetings, focus group discussions and reflective meetings in different townships and locations with traders locally. A critical part of the reflections with traders will be collective analysis of their external and internal context impeding on their ability to trade in the SADC region. An action learning approach will be used based on the real everyday challenges faced by informal traders.

The process is aimed at serving the interests of traders who suffer daily injustices at the hands of their respective governments. It holds the  possibility of the emergence of a coherent political agenda of the SADC Network of Informal Traders that is grounded on the concrete experiences of traders; and will eventually inform their collective actions to bring about change in their world. It is further expected that it will generate valuable information that the traders will use to influence their own environment. Moreover, it is anticipated that the information from this process will dispel the myth that traders are not contributing to the economies of the SADC region, whilst at the same time affirming their role. 

The City of Johannesburg has lied about reaching amicable agreement with informal traders

Following the recent wide media publicity and decry on metro police officials attacks on an informal trader in Midrand, the City of Johannesburg has claimed that an amicable agreement has been reached with the leadership of the informal trade sector. The City of Johannesburg’s Department of Economic Development, which facilitated the urgent meeting between the trader organisations and the representatives from the city, circulated inaccurate minutes of the proceedings and lied about both parties having reached a cordial solution.

The urgent meeting was convened following allegations of abuse of power by the Metro Police officers being reported to the City of Johannesburg by the trader organisation, South African National Traders Retail Alliance (SANTRA). The organisation had called for an urgent meeting of decision makers at the City of Johannesburg regarding the request for a moratorium on the confiscation of informal traders’ goods as a means of law enforcement. Upon securing a date for the meeting with the decision makers at the city, the SANTRA leadership further communicated with the officials from city that they would bring along a legal representative to the meeting. The reason for them bringing in their legal representative was to cover for their lack of legal expertise.  However, on the day of the meeting the legal representative of the traders was refused entry or to be part of the proceedings. The officials from the city contended that no legal representative would be allowed in the meeting because the subject of moratorium on confiscation of informal traders’ goods was a legal matter.

To add misery to the frustration of the traders, the head of the Johannesburg Metropolitan Police Department by-law enforcement team made it clear from the onset that a moratorium on the confiscation of informal traders’ goods would not be deliberated under any circumstances. He told the traders that he was uninformed of the issue of a moratorium on confiscation of goods being the main issue on the on the agenda. He then proceeded ahead to draft the new agenda of the meeting. He deliberately left out the issue of a moratorium on confiscation of informal traders’ goods from the agenda. This prompted the leadership of SANTRA to leave even before the proceedings began as they felt that it was unprofitable sitting in the meeting that does not speak address their needs and demands.

The treatment of the SANTRA delegation at the meeting reflects but a continuum of past injustices on informal traders. In many municipalities across our country, the rights of informal traders to trade and make an honest living are trampled upon. The law enforcement agents pounce on them out of their trading sites thereby forcing them to make way for new roads, trains, shopping centres and bus stations. This clearly shows that government have no regard for informal trade because they see it as a sector that is illegal and criminal. Some municipal officials use divide and rule tactics to bring conflicts amongst informal traders thereby weakening their ability to speak unison. It is clear our government still perpetuates neo-liberal agenda that serves the interests of capitalists whilst at the same time depriving the poor benefits of the mainstream economy. 

ENOUGH IS ENOUGH with metro police brutality on informal traders

The Ecumenical Service for Socio-Economic Transformation (ESSET) condemns in the strongest possible terms the punching and kicking of an informal trader, Andries Ndlovu by four uniformed metro police officers in Ivory Park, Midrand. According to Sunday Times, Ndlovu was beaten on Freedom Day after he asked the metro police officers why they were beating another informal trader, a 60-year-old welder who demanded a receipt or notice when his goods were impounded by the same metro police.

The attack which was publicised widely by various media houses is just but a tip of the iceberg of the harassment experienced by informal traders in many townships, cities and street corners at the hands on the metro police. The unwarranted beating of Ndlovu confirms the stories told by the traders in the recent consultations held with traders in the past week.  Traders spoke of excessive harassment and maltreatment by law enforcers. They did not only cry of stock confiscation but also of the manner in which this was done. They reported of how the metro police, as was the case in the Ndlovu incident, viciously beat up some traders whilst taking their goods for themselves. In our books, these actions should be named for what they are: theft from the poor who are trying to make an honest living for themselves. Even as we issue this statement, we have received further reports of stock impoundment and harassment from informal traders that we work with in Lenasia. In our view, the treatment of informal traders by our democratic government is a display and a reinforcement of the old apartheid tactics, which restricted informal traders and other poor people from the cities.

The incidents of police brutality against the poor, which took place at the dawn of the Freedom Day and Workers Day celebrations, are an embarrassment to the nation. ESSET, as an ecumenical organisation that has been accompanying the struggle of informal traders, is calling on all South Africans, Churches and social justice practitioners to stand in solidarity with the informal traders and other formations of the poor and denounce the on-going injustices meted against them as witnessed by the police brutality on Andries Ndlovu. In response to this call, the Anglican Archbishop of Cape Town, Rev Dr. Thabo Makgoba suggests a solidarity march to show support against such injustices. May his pounding agitate all of us to jointly say ENOUGH IS ENOUGH with the metro police brutality on informal traders and the poor!

This statement is endorsed by ESSET; Mike More, the Chairperson of Gauteng Informal Development Association (GIDA); Sipho Thwala, Co-ordinator of SADC Informal Traders Network; Rev Dr. Prince Dibeela, General Secretary of the United Congregational Church of Southern Africa (UCCSA); Archbishop Thabo Makgoba, Anglican Archbishop of Cape Town and Metropolitan of the Anglican Church of Southern Africa; and Rev Mautji Pataki, Secretary General of the South African Council of Churches.

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”.

 

ESSET hold Consultations with Informal Traders

The Ecumenical Service for Socioeconomic Transformation (ESSET) held a Consultation with informal traders at Khotso House on the 23^rd of April. The aim of the consultation was to reflect together on ways that would strengthen the voice of informal traders in the region. This is part of ongoing processes with traders who are members of the SADC Network of Traders that was established in May 2011. The Network consists of traders from South Africa, Swaziland, Zambia, Zimbabwe and Lesotho. It brings together in-country informal traders and cross-border traders with the aim to fight their struggles with a united voice. Informal trade in South Africa and other many parts of Africa has over the years been a source of livelihood and income for many households. It contributes to Growth Domestic Products (GDP) of national economies yet fails to be recognised.

The process amongst others will involve public meetings, focus group discussions and reflective meetings in different townships and locations with traders locally. A critical part of the reflections with traders will be collective analysis of their external and internal context impeding on their ability to trade in the SADC region. An action learning approach will be used based on the real everyday challenges faced by informal traders.

The process is aimed at serving the interests of traders who suffer daily injustices at the hands of government. It holds the  possibility of the emergence of a coherent political agenda of the SADC Network of Informal Traders that is grounded on the concrete experiences of traders; and will eventually inform their collective actions to bring about change in their world. It is further expected that it will generate valuable information by traders they will use to influence their own environment. Moreover, it is anticipated that the information from this process will dispel the myth that traders are not contributing to the economies of the SADC region, whilst at the same time affirming their role. 

At the end of the Consultative workshop held yesterday there were five themes identified. Under each theme, there were emerging issues that were highlighted as focus of the research in the upcoming focus group discussions:

1.      Obstacles to effective organizing and mobilizing in informal trader organizations:

• The criteria for and the nature of membership in informal trader organizations.
• The lack of clarity on the agenda of informal trader organizations.
•  Funding constraints in informal trader organizations.
•  Tensions in the relationship between members and non-members in trading spaces.
•  Conflict between the private interests of leaders and the expectations of members.
• The negative impact of cultural differences on participation and representation in informal trader organizations.
• The negative impact of unequal gender relations on inclusive participation in informaltrader organizations.
• The lack of unity in informal trader organizations/associations.
• Conflicts between local and foreign traders over scarce resources.
• The geographical spread of informal traders (across local, national and regional spaces) makes it difficult to build solidarity.
•  The pros and cons of establishing umbrella associations rather than small single organizations should be explored.

2.      Popularising the Southern African Development Community (SADC) Solidarity Network of Traders:

o    A lack of information exists on the SADC Network of Traders

3.      Effectiveness of government provided training and other non-financial support programmes and projects for informal traders:

o    The government’s form of communication for inviting street and market traders to participate in projects and programmes is ineffective.

o    Existing programmes and projects, such as “grow your business”, offer no concrete benefits for street and market traders.

4.       Access to finance:

      o    Stokvels could help to relieve the financial burdens of very small enterprises.

o    More information is needed on cooperatives. 

5.      Access to public land for street and market trade:

o    Street and market traders should be located on public land alongside formal private businesses. 

T     The consultations are not limited to conversations between informal traders and ESSET. We call upon all, including social activists, churches, faith communities, social movements and civil society organisations to also make inputs, comments and suggestions on issues raised above relating to informal traders. Contact us by telephone: 011 833 1190 or email: info@esset.org.za

ESSET Response to Minister Pravin Gordhan’s 2012 Budget Speech

The Ecumenical Service for Socio-Economic Transformation (ESSET), an independent ecumenical organisation that works for social and economic justice welcomes Minister of Finance, Pravin Gordhan’s melded and promising Budget speech.

We welcome the emphasis placed by the Minister on infrastructure development, which will be used towards generating the much needed skills and boost job creation in the country. In this regard, the Minister mentioned 43 major infrastructure projects, amounting to R3, 2 trillion in expenditure. Infrastructure development is considered by government as one of its major drivers towards job creation.

ESSET welcomes this initiative with caution as we believe such an initiative is unlikely to bring any shift in fighting poverty and inequality in the lives of many ordinary citizens, especially the youth and the unskilled poor in rural and urban parts of our country. Infrastructure development is only a temporary measure that fails to confront the systematic problems that feed inequality in the country. Although statistics show a small fall in the number of unemployed people in the second half of 2011, the levels of unemployment are still inexcusable. Currently, it is stated that the national employment average stands at 43%, with males averaging 51% of those employed and females at 37% (Statistic South Africa 2011).

It must be said that further analysis of employment would also show that the majority of those employed especially women, are in lower paying, contract jobs that do not have protection of worker rights. While the government encourages entrepreneurship, the majority of poor people such as informal traders remain excluded from the benefits of our economy. Informal traders often complain that the pronouncements made by government towards small businesses are only a token that fail to reach them. Despite their entrepreneurial spirit, they are usually shun at; not recognised and deprived of every opportunity to make an honest living. Majority of people in the informal trade sector are women, whom some are breadwinners or single parents trying to fend for their families.

ESSET is also concerned that despite the massive investments made by government towards infrastructure development, state resources are often used to preserve an institutional framework that protects and promotes the interests of big business at the expense of the majority of poor people. Often money is used to award tenders to big businesses who in turn exploit the poor labour force. If unchecked, South Africa is reaching a point beyond which it may be very difficult to inverse corruption in the public sector”. For far too long now the government procurement processes have been characterized by rampant corruption, bribery, abuse of state in improper awarding of tenders by coffers by public office bearers and senior executives’ in institutions of government is one of the serious concerns.

ESSET is disenchanted that the Minister is still hell-bent on coercing the public to pay R550 burden of funding the e-toll system in Gauteng. This will automatically lead to hike in transport costs, which will further have agonising consequences on poor people and small businesses such as informal traders. We however welcome the move by the Minister to heed to President’s call to address lack of capacity, better project management and ensuring flawless procurement processes to safeguard the hard earned taxpayers money, avoid improper excessive spending, instil culture of financial discipline and ultimately ensure that government get value for money from any service provider contracted to render a service. It is a well-known fact that in the past, sensible promises were made but never see the light of the day but we hope the Minister will do everything possible to ensure accountability of state resources and taxpayers money.

We have noted the Minister’s consistency in tax relief throughout the years, especially towards taxpayers in low-income brackets, small business and micro-enterprises. We also welcome the move to effectively increased capital gains tax rates to 13.3% for wealthy individuals, 18.6% for companies, and 26.7% for trusts, effective from 01 March 2012. ESSET however believes that wealth taxes are only a means to address symptoms of our sick economic system that continues to produce inequality between the rich and the poor.

The real challenge for South Africa is its discriminatory economic system, where the creation of wealth for some is related directly and indirectly to the increase in poverty for others. We are worried that every year there is under spending by various institutions of government and municipalities mainly because of lack of capacity. This is despite the fact that many communities especially in townships and rural areas are without basic services. We are disappointed at yet another increase on electricity and fuel this year. If government was able to budget for infrastructure development why was it difficult to also budget for the ever increment on electricity and fuel prices.

We hope there will be political will and capacity to ensure that all the noble commitments and promised made by the Minister and the President came to be realised. In the past, sensible policy pronouncements and promises made in the budget speeches were not followed through. Maladministration, corruption, fraud, political interference, bureaucratic chaos and incapacity of public personnel were often allowed to encumber the implementation and thus delay the rights of the poor to be recognized. We urge government to support the poor by making their budget more pro-poor, so as to enable the poor to access their every daily bread.

SADC Informal Traders Campaign Update – 07/12/2011

Report by Cecilia Dube (Women Informal Development Forum)

It is our honour to inform you that Women Informal Development Forum (WITF), a structure representing women informal traders will be picketing and making a submission to the Office of the Deputy Minister of Trade & Industry. The picketing and the making of submission form part of the SADC Informal Traders Campaign against Sexual and Economic Violence, which is aimed at raising awareness of the struggles and human rights violations of informal traders within the SADC countries. As women informal traders in South Africa we are using the 16 Days of Activism against the Abuse of Women and Children to raise awareness about our plight as women and make demands to government about our rights and dignity.
The Picketing and making of Submission event is scheduled as follows:
Date: 9th December 2011
Venue: DTI Offices, 77 Meintjies street, Sunnyside, Pretoria
Time: 12pm

Report by Sipho Thwala (SADC Informal Traders Campaign)

Informal Traders in Gauteng rounded off the year on a high note when they elected the Gauteng Informal Development Forum, a provincial structure representing informal traders in the province.
The leadership of the Gauteng Informal Development Forum are:
Mike More- Chairperson
Sam Taraka- Deputy Chairperson
Lule Pretorius- Secretary General
Juleka Latib- Deputy General Secretary
Frans Seema- Co-ordinator
Phumlani Ndlovu- Treasure
Clifford Dube- Administrator
Leon Barclay- Chairman (Investment)
Bonisile Malati- Deputy Chairman (Investment)

Report by Bhevha Hlophe (CIEAS, Swaziland)

The Coalition of Informal Economy Association of Swaziland (CIEAS) is still running in full steam with the activities of the SADC Informal Traders Campaign, aimed at putting an end to sexual and economic violence on informal traders. On the 05th December 2011 (Monday) we held a rally with informal traders in the Hhohho region. The rally focussed on issues and challenges affecting informal traders in Swaziland. So far in the different places where we held our rallies it has become clear that most of the traders across our country struggle with similar challenges though situated in different regions. For example, rally after rally we were told by traders that they lack proper stalls to trade. Those who are cross-borders, especially women traders complained of sexual harassment at borders while over taxation is also another serious concern for most cross border traders. We could not help but notice how the traders appreciated our effort to discuss with them about their experiences and challenges. It is however sad that we could not go to every region and speak to all of them because of financial constraints. Our wish is that before the end of this year we should be able to organize a workshop for traders who are widows. The idea is to ensure that they are empowered to know their rights, especially since some men hide behind culture to exploit them. Therefore we are planning on organizing a workshop and invite some legal experts to come and empower them accordingly.

Report by Riedewaan Charles (Western Cape Informal Traders)

In Western Cape informal traders on the streets and those selling in the demarcated areas at least have not experienced any impounding for a month now and we hope it continues to be like that. However, we are disturbed that traders selling on the metro rail are being harassed left right and centre by the metro rail security, who only explain their action as enforcing the law. The challenge is that when we approach Intersite, we are not allowed to see the managers instead we are told to set an appointment first and lay a complaint at the information desk. Nevertheless, our complaints never get to the manager (s) and we also not afforded opportunity to meet the manager (s) so that we are able to engage her or him about the harassment of rail traders. We have also been busy mobilising and organising the sector in the province. We have noticed that most of the informal traders lack skills, even of running their own organisations. Lack of skills of informal traders in Western Cape have as a result led to the split of 43 informal trader organisations, but we have been successful in mobilising traders to resuscitate 20 organisations. We believe that if we can be able to have proper structures of traders it will be easier to speak with one voice, get funding and challenge government forcefully to take us seriously as the sector. We envision forming a strong inclusive provincial informal trader’s structure by next year February.