Abstract
To translate strategic objectives into real outcomes, it is important to understand the context in which policies are implemented, especially in complex, dynamic environments. This study examines the National Informal Business Upliftment Strategy (NIBUS), which invested millions in informal and micro businesses within South African townships but faced low uptake and limited success. Guided by Contextual Interaction Theory (CIT) and employing a qualitative integrative literature review, the study explores how motivation, information, resources, and interactions shaped the implementation of NIBUS within township contexts. Through a thematic analysis of government reports, academic literature, and policy documents, the findings reveal that the limited effectiveness of NIBUS was largely due to a failure to adequately address the social, economic, institutional, cultural, and environmental realities
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facing township entrepreneurs. The study demonstrates that implementation challenges were not only the result of policy design weaknesses but also of broader limitations in governance, coordination, and stakeholder engagement. The findings also show the importance of context-sensitive, participatory, and adaptive implementation approaches in improving policy responsiveness within informal economies. In response, the study proposes recommendations centred on decentralised implementation, inclusive stakeholder participation, improved institutional coordination, and locally embedded support systems. Ultimately, the study contributes to broader debates on policy implementation, governance, and the development of the informal economy by demonstrating how contextual realities shape the success or failure of public-sector interventions.