1. 2017 ECONOMIC DEVELOPMENT, TOURISM AND ENVIRONMENTAL AFFAIRS
Presentation on the RECOMMENDATION 204 OF 2015
“what has been done”
January 2013
2017

2. KZN Informal Economy Masterplan
The draft masterplan has been presented and endorsed by the MEC;
The draft Masterplan is aimed at facilitating the transitioning of informality to formal economy in line with the R204;
The KZN draft Masterplan is seen as a strategic tool towards the implementation of the radical economic transformation in KZN;
Once approved the Masterplan is to be a roadmap for informal economy in KZN, by bringing together a number of various programmes/interventions aim at uplifting the Informal Economy in KZN and
In order to solicit a political buy-in, the Masterplan will be tabled before the KZN Cabinet for adoption before it is implemented.
The Masterplan is to be finalised and adopted by KZN Cabinet before March 2018

3. SCOPE OF WORK FOR THE MASTERPLAN
Gather baseline data of economic units and workers within the sector in KZN;
Identify interventions across the different strategic objectives of R204 ;
Identify interventions to be pursued at a National, provincial and Local level; and
Identify programmes / projects for implementation across the different stakeholders.

4. KZN WORK DONE TO DATE

5. 1) R204 provision – Data Collection and Monitoring
Informal Economy Database – KZN Automated System
Initiative intended to be a reservoir of data / information of informal traders across the province and across the sectors;
It will be used as a tool for planning, monitoring and evaluation the progress amongst the different sectors workers;
Tool to be used across the Province by all Municipalities
Enhancements currently underway this year to allow the system to become an automated online application system for the both formal and informal businesses alike ito licencing, registration and permitting of informal traders.

6. 2) R204 provision – Incentives, compliance & Enforcement
Project Management Unit – Business Licencing and Permitting
A project designed to assist Municipalities with Capacity to execute its statutory mandate to issue business licences and trading permits for the informal businesses. (2 sides of the same coin);
Pilot project conducted last year within the UMgungundlovu District;
Current year the project will be rolled out for next 3 years to identified District Municipalities to create this capacity; and
Tool is designed to discourage illegality and Informality and promote formalisation.

7. 3) R204 provision – Incentives, Compliance and Enforcement
Development of the KZN Informal Economy Strategy
Approved in 2016 the Strategy is aligned to both the NIBUS and the R204
The Strategy is aimed at the upliftmnet of Informal enterprises in the Province
The Strategy identifies key strategic interventions for both the Provincial and Local government for the upliftment of the sector
The strategy promote the integrated and all-inclusive economic growth in line with the KZN PGDS

8. 4) R204 provision – Legal and Policy Framework
KZN Informal Economy Policy 2010
Adopted in 2010 by the KZN Cabinet, the KZN Informal Economy Policy provides the guiding framework for the Sector;
KZN is the only Province with a framework to support and regulate the sector in the country biased in favour of a developmental approach as opposed to enforcement and compliance;
The introduction of NIBUS in 2014 and the adoption of R204 in 2015 meant that there was a need to review the policy so that it is aligned to the provisions of both R204 and the NIBUS; and
In partnership with the LM’s and the KZN IE Chambers, the Department is in the process of reviewing the Policy.

9. 5) R204 provision – Legal and Policy Framework
KZN Businesses Bill
Overall objective is to provide for uniform application and processing of Business licences and permitting of informal traders and registration of all other Businesses across KZN – Red tape reduction initiative;
Bill provides for the support of the informal economy and enterprise support – Bill promotes a developmental agenda;
Provides for a dedicated fund for enterprise support and framework for township revitalisation; and
Bill also provides for compliance and enforcement and provides for the establishment of the Municipal and Provincial inspectorates functions

10. 6) R204 provision – Freedom of association
KZN Association of Businesses
Established in 2016, the KZN Association of Businesses is made up of both formal and informal business formations;
Overall objective is to be the facilitator between Government and Businesses on various initiatives;
Intention is for this structure to actively promote and participate in the Provinces bulk buying and warehousing programme;
This structure to also be a member in the KZN Economic council
KZN INFORMAL BUISNESS CHAMBERS
Facilitated the Established informal chambers across the Provinces;
This process culminated to the formation of the Local, District and Provincial Chambers
Overall intention is to be the unifying voice for the sector.
The Provincial chamber also play and advisory role to the MEC on issues pertaining to Informal Economy in the Province

11. 7) R204 provision – Incentives, Compliance and Enforcement
KZN ICOREF
Established in 2016 – Intergraded Compliance and regulatory Forum
Made up of all regulators across the following 5 sectors viz –
FMCG;
Motor Industry;
Liquor
Tourism
Financial sector
Overall objective is to inspect businesses for compliance particularly around safety issues for consumers ito of products; compliance with Labour legislation and contracts of employment to address social security issues and to prevent informalisation of formal jobs
Current successes of the structure has created awareness around business complying with legislation and compliance with labour laws ito of its employees.

12. The End. ..