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Social protection for informal traders : a legal analysis
Dissertation   Open access

Social protection for informal traders : a legal analysis

Katleho Letsiri
LLD, University of Johannesburg
2025
Handle:
https://hdl.handle.net/10210/521540

Abstract

Informal trading is a long-established occupation and a defining feature of African cities. These workers engage in buy–sell activities, manufacturing, and service provision, contributing to both formal and informal supply chains, job creation, and municipal revenue generation. Typically located in high-foot-traffic areas such as central business districts (CBDs) and transport hubs, informal traders play a crucial role in economic survival, particularly for South Africa’s predominantly Black women traders. Given the country’s apartheid legacy, informal trading is concentrated within low-income communities, making it a vital means of escaping poverty. There is a clear correlation between race, historical disadvantage, and informal trade, further reflected in the prevalence of such work in low- and middle-income countries. Despite their economic contributions, informal traders are often perceived as a nuisance and a hindrance to urban development. Local municipalities frequently respond with evictions and confiscations rather than creating an enabling environment that legitimises their work. Existing laws and policies fail to address their challenges, and informal traders are entirely excluded from labour and social security protections. The traditional social security model, which is based on formal employment relationships, does not recognise informal traders as "employees," leaving them without essential safeguards. This lack of protection exacerbates their vulnerability, particularly in times of crisis, including climate change-related disruptions. Therefore, this thesis adopts a broader social protection lens, which moves beyond employment-based frameworks to explore mechanisms for extending meaningful protection to informal traders. The central research question is: How can social protection be extended to informal traders? South Africa’s definition of social protection extends beyond conventional social security and emphasises development strategies aimed at securing a minimum standard of living. However, any approach to extending coverage to informal traders must be context specific. A blanket extension of existing laws will not suffice, as informal traders are a heterogeneous group, encompassing street traders, market traders, and mobile traders, each with their own distinct needs. This study will explore tailored solutions rather than a one-size-fits-all approach.
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