1. “Approaches to Municipal Management of the informal Economy: Hibiscus Coast: Case Study “Approaches to Municipal Management of the informal Economy: Hibiscus Coast: Case Study By Siyabonga Zama Directorate of Economic Development Hibiscus Coast Municipality

2. Presentation Outline Hibiscus CoastHibiscus Coast Informal Trade HCM PerspectiveInformal Trade HCM Perspective Integration of Informal EconomyIntegration of Informal Economy Types of Informal Trade in HCMTypes of Informal Trade in HCM Informal Economy Regulatory EnvironmentInformal Economy Regulatory Environment ChallengesChallenges RecommendationsRecommendations

3. HIBISCUS COUAST MUNICIPALITY HIBISCUS COUAST MUNICIPALITY 65 Km Coastal Belt 65 Km Coastal Belt 21 Beaches 21 Beaches 7 Blue Flag Beaches 7 Blue Flag Beaches Prime Tourist Destination Prime Tourist Destination +80% Rural +80% Rural 20% Urban Contributes 80% towards the economy of the municipality 20% Urban Contributes 80% towards the economy of the municipality

4. Informal Economy HCM Perspective Informal Economy HCM Perspective Refers to economic activities that are not regulated in terms of the laws applicable to the formal sector. Refers to economic activities that are not regulated in terms of the laws applicable to the formal sector. Trading in goods and services in designated areas (Informal Trading Areas) Trading in goods and services in designated areas (Informal Trading Areas) Operators in the second economy are survivalist in nature Operators in the second economy are survivalist in nature Source of employment for most rural, peri- urban communities Source of employment for most rural, peri- urban communities

5. Integration Of The Informal Economy To The Formal Economy Integration Of The Informal Economy To The Formal Economy Second economy cannot be formalizedSecond economy cannot be formalized Create a regulated environmentCreate a regulated environment Alignment of activities with the activities in the formal sector especially tourism i.e. major events, business retention programsAlignment of activities with the activities in the formal sector especially tourism i.e. major events, business retention programs Ensuring on going partnerships with organized business and tourism body. Ensuring on going partnerships with organized business and tourism body. Form part of the LED Strategy and SMME’ Development PlanForm part of the LED Strategy and SMME’ Development Plan

6. Types of informal Trade Beach Traders Beach Traders Street Trading Street Trading Salons Salons Kitchens Kitchens Car guides Car guides Bovine heads traders Bovine heads traders Mobile Traders etc. Mobile Traders etc.

7. Regulatory Environment Regulatory Environment Informal Trade By Laws Informal Trade By Laws Informal Trade Policy Informal Trade Policy Informal Trade Registration Committee Informal Trade Registration Committee Informal Trade Areas Informal Trade Areas Enforcement Enforcement

8. Challenges of the Informal Economy Second Economy is an unfunded mandate Second Economy is an unfunded mandate Lack of Infrastructure for informal traders Lack of Infrastructure for informal traders Lack of adequate infrastructure for food traders ( trading in unsafe enveronment) Lack of adequate infrastructure for food traders ( trading in unsafe enveronment) Lack of financial literacy Lack of financial literacy Capacity to provide support Capacity to provide support Financial Support to informal Traders Financial Support to informal Traders

9. Continue… Growing number of people entering the second economy e.g. our African brothers Growing number of people entering the second economy e.g. our African brothers Enforcement Enforcement Planning considerations Planning considerations Capacity of the informal Traders Chambers at a local level Capacity of the informal Traders Chambers at a local level Chambers VS prior existing associations. Chambers VS prior existing associations.

10. Recommendations Provisions of infrastructure in the designated informal trading areas. Provisions of infrastructure in the designated informal trading areas. Developing generic support systems Developing generic support systems Financial support to informal traders Financial support to informal traders Financial Literacy Training Financial Literacy Training Local municipality based research initiatives Local municipality based research initiatives Provide capacity to municipalities : human and financial resources Provide capacity to municipalities : human and financial resources

11. CONTINUE….. CONTINUE….. Mainstreaming into the existing value chainMainstreaming into the existing value chain Planning considerationsPlanning considerations

12. Conclusion Informal economy remain the source of employment for the poorInformal economy remain the source of employment for the poor Any support to municipalities will enable municipalities to cope with the growing number of people entering the sector dailyAny support to municipalities will enable municipalities to cope with the growing number of people entering the sector daily

13. NGIYABONGA THANK YOU