Street traders play an important role in tourism in South Africa. They provide affordable goods to tourists while generating employment for others. Some even source products locally, such as beadwork, traditional masks, woven baskets and various other souvenirs, creating linkages with domestic producers.
Most of these traders are migrants from outside South Africa.
South Africa is regarded as the preferred destination for migration in Africa. Migrancy scholars Jonathan Crush and Vincent Williams point to tourism and entry statistics from Statistics South Africa, visa overstay and deportation data, and refugee figures from the United Nations High Commission for Refugees to support the new movements of refugees since the fall of apartheid.
On arriving in the country, many enter the informal economy to make a living. Often this involves taking up self-employed entrepreneurial activities such as selling goods on street corners.
South Africa’s tourism hubs present significant trading opportunities. In 2023, the country attracted 8.48 million international tourists. Though still 41.1% below pre-pandemic levels, this was an improvement. Tourism contributed 3.5% to GDP in 2022, when it outperformed industries like agriculture and construction.
But traders face tough conditions. The sector’s informality means policymakers can easily overlook it. Traders lack formal recognition and have limited access to resources.
This should change.
To improve their conditions, several measures could be helpful, including:
well-maintained designated trading areas that are equipped with essential amenities like shelter and storage
simplifying the process for obtaining the necessary permits and licences to increase their legal protections and operational stability.
These measures must be the result of discussions with the traders.
Our view is informed by research we conducted on informal traders over two years (2022 and 2023) in Cape Town, Durban and Johannesburg. Our focus was on the ability of the traders to adapt during times of crisis and economic downturn.
We found that the traders showed high levels of resilience and ingenuity to survive under tough conditions. But resilience can’t conquer all. The long-term sustainability of informal trading ventures hinges on external factors. They include government support and functioning institutions such as law and order that can help them manage challenges such as xenophobia.
The traders
Our study involved 35 qualitative interviews and 363 completed quantitative questionnaires. Three quarters of the respondents were foreign.
Traders from east and west Africa were dominant in Cape Town while Zimbabwean traders were dominant in Johannesburg.
Most informal traders (67%) were the sole income earners for their families, supporting multiple dependants. Before starting their businesses, only 47.5% had formal employment in roles like teaching, cleaning, or sales. Most traders had been operating for over 14 years. Monthly gross incomes averaged US$580, with Johannesburg traders earning more than those in Cape Town and Durban.
On face value these amounts seem higher than earnings of informally employed wage workers such as day labourers. However, these are gross figures, so comparisons with other occupations or cost of living must be treated with caution.
Resilience and ingenuity
The stories the traders shared with us are a testament to resilience and ingenuity. Migrant traders’ adaptability and joint commitment underscore their resilience, a key factor in overcoming economic and social crises.
Informal trading in the tourism sector drives local economies by providing tourists with authentic cultural experiences through locally crafted products. Traders’ activities create employment opportunities, including jobs for individuals working at the stalls and trolley pushers assisting with setup. Their incomes also support entire families.
Migrant traders also bring an entrepreneurial spirit to South Africa’s economy. Our research revealed that, unlike some of their South African counterparts who may access social grants, migrant traders often diversify their product offerings quicker and more extensively to adapt to changing market demands. This included introducing clothing alongside crafts or selling locally sourced goods (like items used by traditional healers) during economic downturns.
Their ability to adapt and innovate, even in difficult circumstances, contributes to the resilience of the broader tourism sector. Migrant traders quickly resumed operations after the pandemic. They used strategies like shared payment devices to improve efficiency, and community networks to weather economic shocks, so that tourism-related goods and services remained available.
Blind spot for policy makers
The sector’s informality leaves it overlooked by policymakers.
During the pandemic, formal businesses received government relief, but informal traders were largely excluded. For migrants, the absence of support was even more pronounced, as they lacked access to social safety nets available to South African citizens.
By supporting informal traders, particularly migrants, South Africa can enhance the sustainability of its tourism sector. This support could take various forms:
Policy recognition: Acknowledging the vital role of informal traders in tourism and integrating them into local economic development plans.
Practical policy responses: Examples include improving visible policing and cleaning up beach precincts, especially in Durban. This would reduce crime, increase tourist visits and improve the lives of street traders.
Access to resources: Providing grants or loans tailored to informal businesses.
Skills development: Offering training programmes to strengthen business acumen and innovation.
Community engagement: Promoting social cohesion to reduce xenophobic attitudes and fostering partnerships between local and migrant traders.
Next steps
The stories of South Africa’s informal migrant traders are ones of perseverance and potential. They remind us that resilience is not only an individual trait but a communal effort.
By recognising and supporting these traders, South Africa would be investing in a more inclusive, robust tourism sector.
As South Africa seeks to revive its tourism industry through the Tourism Sector Recovery Plan, the contributions of informal traders, local and migrant alike, cannot be overlooked. These entrepreneurs are shaping the fabric of the industry, one craft and one customer at a time. Supporting them is not just an act of kindness; it is a strategic move for the nation’s economic future.
The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.
By Alicia Fourie, Professor, GIBS, University of Pretoria And
Andrea Saayman, Professor And
Derick Blaauw, School of Economic Sciences, North-West University
