Address by Ethekwini Municipality Deputy Mayor Logie Naidoo, StreetNet Launch November 12, 2002

The fact that you have chosen our city for this important launch is an affirmation of the initiatives our city has taken to promote and develop a well-managed, safe, clean and sustainable street trading economy within the central city and throughout Ethekwini municipality.

In October 2000, the Joint Executive Committee of the North Central and South Central Local Councils, approved and adopted what has since become under the current Unicity administration, Durban’s Informal Economy Policy. The policy process was consensual and consultative, comprising interviews and workshops with different stakeholders in the informal and formal business sectors as well as councillors, officials, civic organisations, development forums and members of the public.

This policy for informal economic development is grounded in overall strategic policy set by Durban’s local government. Among related initiatives are a Revitalisation Strategy for the Central Business District, a Best Practice City Commission and a Safer Cities project. As a result of Durban’s street trading policy, significant progress has been achieved in Warwick Junction and several pilot projects.

Our commitment to the principles and practices which you advocate and promote is clear and a matter of public record. Furthermore, research shows that Durban is ahead of other large South Africa cities in terms of integrating the informal economy and its concerns into appropriate institutions of local government. Our progressive policy is new; it is still in the process of evolving. Organisations like StreetNet will have a critical role to play to ensure that the policies and practices that we undertake regularise, strengthen and expand this important economic sector.

In terms of poverty alleviation and employment, the street-trading sector has already proved to be vital in improving the livelihoods of the previously marginalised segment of our people, in particular, women. In 1996, for example, there were 20 000 street traders in the Durban Metropolitan area, of which 60 percent were women. In 1998, black householders in the Metro area spent more than R500 million in informal sector outlets. There is therefore no doubt that that the street trading sector is contributing its fair share in raising families and educating children, many of whom are today distinguished members of our city.

It is a well-known fact that in our country, the formal business sector has limited capacity to significantly reduce the level of unemployment. Our integrated national, provincial and local government policies therefore seek to supplement the formal economy through the expansion of Small, Medium and Micro Enterprises (SMMEs) in general, and the street vending sector in particular.

Large amounts of resources have been allocated in the past four years to developing satellite markets and providing infrastructure, such as shelter and water in the central city for street traders. A substantial allocation has also been made to capital projects as well as in the provision of annual grants.

Among the attributes of street traders that we in government encourage, value and applaud, is their sense of initiative, their creativity, and self-reliance. The days when the government was the panacea for all the economic, political and social needs of society are over. It is up to the people and their representatives to be part of developmental strategies and processes because they know best their needs, aspirations and challenges which communities across our city face daily. This strategy also seeks to encourage communities to take charge and ownership of their neighbourhoods so that they can develop and protect them against natural disasters and criminal elements.

We therefore applaud your work and together we shall have ability to overcome many critical problems and challenges this sector still faces. Some of these are the negative perceptions held by many in government and formal businesses, the status of foreigners in the sector and the rapid increase in the number of people trading at traffic intersections. We believe, however, that the problems currently faced by the street trading sector are not insurmountable; they are the growing pains. When we all commit ourselves to working together to nurture and grow this sector, it will show its true worth and limitless possibilities as an important member of the family of entrepreneurs. (The address has been edited)

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