Mbashe Local Municipality has given financial support to hawkers with the aim of stimulating local economy by focusing on financial support for informal traders based in disadvantaged communities.
Municipal spokesperson, Babalwa Magqwanti, said the informal sector is among the sectors that have economic potential in the region and it helps create jobs. “A large section of hawkers in Mbhashe are those with low skills who have migrated from rural areas in search of employment. The potential for informal trading and retail has not been realised since they (informal traders) suffer from [minimal] skills and marketing capabilities,” she said.
Magqwanti said the hawkers lacked tools of trade and equipment, had a shortage of money, with poor access to funding opportunities, and lacked business skills. The local authority has set aside a budget of R500 000 for the programme. A total of 60 hawkers from Dutywa, Willowvalle and Elliotdate will benefit – with 20 hawkers in each town. “As part of strategies to support informal traders, this is an ongoing project and is budgeted for every financial year.
The Informal Sector Development Support programme, she said, was part of the reviewed local economic development strategy of the municipality. “The informal sector is regarded as a vital component in driving sustainable livelihoods through the cushioning it provides to those struggling to find employment in the formal sector. More importantly, the municipality not only provides formal support but also non-financial support which includes a variety of capacity building interventions such as training on business management, financial management and other relevant skills development programmes,” she said.
Magqwanti said the informal economy plays a vital role in ameliorating the triple challenges of poverty, unemployment and inequality. The sector, she said, directly and indirectly create employment opportunities, and contributes to poverty alleviation while also creating sustainable livelihoods.
One of the beneficiaries of the programme, Nobom Mtotoyi, said she was grateful for the support from the municipality. Portfolio head of Development Planning, Nomvuyiseko Mgedezi, said the initiative was meant to grow the businesses of the beneficiaries.
