Investigating the key Implementation Levers of Informal Trading as a Legitimate Tool to Formalize Urban Informality in the City of Durban

Abstract

Against the historical backdrop of apartheid-era restrictions on informal trading, the study investigates how progressive policies introduced in the 1980s laid the foundation for embracing informal trading activities. Drawing insights from pilot projects and extensive stakeholder consultations, particularly with those engaged in the informal sector, Durban formulated a pioneering policy on its informal economy in 2001, positioning itself as a leader among South African cities. Through an in-depth analysis of the regulatory frameworks of informal trading, including the eThekwini Informal Economy Policy of 2001, and the use of Semi-structured interviews conducted with an Official from the eThekwini Municipality Business Support Unit (BSU), this article aims to investigate and elucidate the essential mechanisms-planning, allocation, registration, and rentals- underpinning the legitimization of informal trading within the urban landscape of Durban. Key areas of focus include the strategic integration of street trading into urban planning frameworks, establishing effective registration processes, fair allocation of trading spaces, transparent rental policies, and establishing supportive regulatory environments to facilitate inclusive economic development initiatives. By exploring the multifaceted role of these implementation levers in navigating the complexities of urban informality, the study seeks to provide valuable insights into effective strategies for harnessing street trading as a legitimate tool for formalizing informal economies in Durban. Ultimately, this research contributes to the discourse on sustainable urban development and inclusive economic growth strategies, offering practical guidance for policymakers, urban planners, and practitioners aiming to address the challenges of urban informality in Durban and beyond.