​At the Coun​cil meeting held on Thursday, 28 January 2016 the proposed revision to the Parow CBD informal trading plan was approved. Cllr Richard O'Connell (Ward 26) provided the rationale for the proposed changes in a speech delivered to Council.

Importance of the informal trading sector

The benefit o​​f the informal sector to the most vulnerable households in the city and its impact in terms of poverty reduction is huge.

According to the Economic Performance Indicators for Cape Town (EPIC) report for the second qua​rter of 2015, some 161 000 individuals (11,3% of the total workforce in Cape Town) were employed in the informal sector. If the informal sector was viewed as a conventional economic sector, and based on a conservative estimate of about 10% of the workforce, it would be the fifth largest employing sector in the city, just below manufacturing (11,96%) and above the construction sector (9,52%).

When we look ​​at the bigger picture and at the economy in its entirety, the above numbers are testimony to the importance of the informal sector as a source of employment in Cape Town.

The objective of​ the review of the 2003 decision to allow informal trading in Station Road in Parow is a sincere attempt towards creating a more conducive environment for informal trading.

There are many more opportunities for informal trading and 185 bays will be provided – 84 in Station Road and 101 in the under-utilised parking area bordered by King Edward and Al​​exandra Roads. The additional 101 trading bays will create an economy of scale to sustain trading opportunities and become an easily accessible trading destination, close to ablution facilities and convenient parking for clients.

A commitment from the Greater Tygerberg Partnership to improve the trading space with the placement of planters with flowering shrubs will significantly improve the shopping exper​ience and make this an even more lucrative sector and an aesthetically improved urban regeneration project.

While the term ‘informal’ may conjure up images of survivalist traders operating on the sides of roads, it refers more to the conditions of work and should not be taken to imply that the sector ​​is disconnected from the rest of the economy. On the contrary, it complements the range of shopping alternatives that are available.

The reduction in the number of bays in Station Road will improve the interface between formal ​​and informal trading with both sectors recognising each other’s worth and will significantly improve the safety of both traders and shoppers. It is estimated that some 40 0​00 pedestrian movements per day are experienced along the very narrow spaces between the existing buildings and the temporary informal trading structures along Station Road.

Currently it presents an ideal opportunity for the mugging of traders, shoppers and transients moving from​​ the Parow Station to Voortrekker Road where many commuters hail a taxi to the​ir place of work in the greater Tygerberg area. It is also the sector where Parow SAPS experiences the most criminal activity.

Therefore the reduction in the number of bays will significantly enhance safety in the area as the survei​llance of criminals can more easily be observed from the recently installed CCTV cameras. Emergency vehicles will also have access to a de-densified space where safety risks can be more effectively mitigated.

One cannot underestimate the impact of informal sector income on otherwise impoveri​shed households. The 4,5 percentage-point reduction in Cape Town’s poverty rate is equivalent to pulling 186 000 individuals out of poverty. Although the aggregate contribution from this sector to the GDP may be small, the aggregate improvement in well-being is large.

'he public participation processes have taken cognisance of concerns raised by traders and the City is already working on solutions to facilitate a smooth entry into the informal economy. The City’s Economic Development department is currently conducting ro​​und-table discussions with informal traders to work with them in finding solutions to their areas of concern.

‘Through our Small Business Support Office, established to promote entrepreneurship and business-driven job placements, the City helps business people to find the most appropriate support service from a network of over 90 business development organisati​ons (including financiers) that are located in the city. The value of this service offering is that it prevents entrepreneurs from having to waste energy, money and time approaching the wrong support organisations and service providers or paying for services that are sometimes freely available or partly subsidised,’ added Councillor Bloor.