The Peoples' Economy

Edmund Elias, the South African National Traders’ Retail Alliance (SANTRA)

The Peoples' Economy is a massive functional entity that operates as a component of the entire economy. Its activities are undocumented and usually function below the "developmental radar level".

This component of the economy provides opportunity for millions of people who have not been absorbed into structured economic activity for various reasons. In essence ordinary people, for reasons of survival, have been compelled to move ahead of systems that have effectively not provided for their basic needs. In many instances their activities have in fact been labelled as "illegal".

For example, thousands of Johannesburg street traders operating in 61 precincts and suburbs that have been declared prohibited trading districts, as well as those conducting economic activity from homes in areas governed by the 1979 town planning scheme, are all "illegal".

Street Trading

Street trading is the single most important point of entry into the economy for unskilled and semi-skilled, as well as retrenched people. It requires no real capital, qualifications or the kind of track record needed to obtain formal trading premises. It has not been embraced as an important entity but, due to its unmanaged status, it has in fact been branded as an obstructive, unsightly nuisance.

In certain instances, such as in parts of the Johannesburg CBD where corporate sector management is in place, this form of economic activity adds value to the areas in question by providing a "people’s vibe", as well as opportunity for convenience shopping for small items. The perceived conflict of interest between street traders and other stakeholders does not exist in these managed areas. These areas do not have vacant shops, for example.

And formal stores in the Fordsburg, Johannesburg, area are open at night on weekends because of the managed street market in that area. The micro-traders bring extra people and business to the area.

We at SANTRA propose that the concept of street trading be embraced by both formal business and Government as a key "weapon" in the fight against unemployment and the resultant poverty. This concept of self-help could reduce the growing dependence on the "welfare state".

Management holds the key

For management to be sustainable it needs to be financially viable. Subsidised management models such as the Johannesburg Metropolitan Trading Company have failed. Management needs to be locally driven, and partnerships with local authorities and formal business are options.

A multitude of managed trading markets on the sidewalks of our towns and cities would unquestionably impact positively on the unemployment situation. The facilitation of such a process needs a champion.

The developmental/management model that we suggest provides for:

• The identification of potentially lucrative areas
• The demarcation of non-obstructive sites
• Provision of aesthetically acceptable trading facilities
• Payment of a market related management fee by traders
• Employment of monitors, security and cleaners
• Provision of a "start-up grant" for individual traders
• Access to funding
• Social security benefits.

The most practical way forward is to identify an area suitable for a pilot project. At this stage the Yeoville area, given its present unmanaged street trading status and its diversity, has been earmarked as a possible area for such a pilot project, and a coalition between stakeholders and trader representatives has already been established.