Buckling under pressure of high unemployment which confines many families into a life of begging, the Ladysmith-based Alfred Duma municipality in KwaZulu-Natal has unleashed a street vending scheme driven by women and unemployed youth.
It is believed that the plan will revitalize the local economy and turn the rural town into a bustling economic centre driving new jobs.
The initiative was announced during the informal sector indaba which brought together young people, financial institutions, and street vendors.
Street hawker Mahlengi Mndebele explains that rampant crime, lack of finance, and red tape is the main challenge facing informal traders.
“Young people do not mind doing things for themselves. But red tape and bottlenecks into acquiring trading licences create despondency,” said Mndebele.
“In addition, those who have started struggle to get finance to grow their businesses. Our businesses are also not safe from criminals.”
Mndebele, who is armed with a degree, runs a fast-food stall in the CBD after failed numerous attempts to find a job as a teacher.
Mndebele turned to the informal business sector to eke out a living for her family.
Despite the town of Ladysmith being positioned strategically to link both Durban and Gauteng via the N3 highway, the region has not leveraged this strategic asset.
The region, which is also the seat of uThukela district municipality, is the third least contributor in the provincial economy, contributing about 4.6%.
Alfred Duma mayor Zama Sibisi said with new job-creation programmes, the area is turning the tide against endemic unemployment.
“We are focusing on the informal sector because it has the potential to create massive jobs,” said Sibisi.
“The street vendors need support and we have heeded their call by putting funds aside to support people who want to venture into the sector.
“But there should be constant monitoring and training to ensure that they don’t fail.”
Sibisi pointed out that the municipality has also begun a process of distributing start-up vouchers to allow aspiring vendors to purchase goods and products for their ventures.
In its 2021-22 report, the Global Entrepreneurial Monitor ranked South Africa’s entrepreneurial ecosystem as the sixth worst.
The rating investigated several factors that hinder growth of the informal sector including access to finance, training, and bureaucratic red tape, among others.
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