DA to launch investigation into effects of drought on Informal traders, communal farmers

Our investigation will include and not be limited to:

Oversight visits to all 22 fresh produce markets around the country in order to ascertain bottleneck issues affecting small traders;

Visit every province to interview street vendors and informal traders on what action steps they need from government to stay in business and make a profit;

Oversights to find fresh produce conducive sites for new potential fresh produce markets that is closer to rural areas;

Finding red tape impediments in the current legislation affecting informal traders and communal farmers with the rezoning of rent-free trading locations being a priority.

Space to trade

The government should assist in keeping small business traders liquid by creating customer-friendly and easily accessible rent-free spaces to trade. By reducing their overheads it will allow these traders to keep their prices low without sacrificing their profit margins that have been threatened by the drought and resultant food price inflation.

In the City of Cape Town, where the DA governs, we have cut a number of by-laws to assist informal traders. I have also tabled a Private Members Bill before Parliament that will seek to bring the DA's principle of good governance to the rest of South Africa.

Insights into street vendors

The DA has previously conducted oversights into street vendors selling fresh produce on the streets of Limpopo, Emalahleni and Gauteng. The following observations were deduced following discussions with market agents and vendors:

One-third of the small business associates have given up on their ventures.

The turnovers for the small business owners still selling their wares have declined by more than 20%, and most of them say that they will close their little enterprise if there was any other opportunity to earn a living for their families.

More than 30% of the traders have disappeared over the past three months. Those who are still in business only buy 50% of the quantity compared to last year.

Our current findings paint a grim picture showing how neglect by government has left informal traders and communal farmers with very low chances of feeding their families and living a prosperous life that they value.

The DA's action to investigate will seek to hear first-hand from informal traders what we can do for them in order to assist where possible and where the ANC government has failed. It is important to ensure that government does not neglect informal businesses, as these are often the poor of the poor, we will ensure that these small businesses are made more sustainable.

Henro Kruger, Shadow Deputy Minister of Small Business Development