Informal Trading Citichat 30 September 1999

CITICHAT 32/99 - September 30 1999


Informal Trading

Since writing about the 'horde of hawkers' last week pouring out of their new Marshall Street storage base, I see we now have a dedicated traffic lane in that street at peak hours to separate vehicular traffic and trolley traffic. We must be the only country in the world to have had to create such a facility. Unfortunately, the problem isn't resolved. Rissik Street which is one of our major roads into and through the city going north is the next route for the trolley brigade after leaving Marshall. The fact that it is one way north doesn't seem to be of much interest to the hawkers, last evening on the way home through the city I turned from Fox into Rissik and almost collided with two southbound trolleys abreast of each other in the centre of two lanes. The hawkers couldn't see what was coming their trolleys were packed so high. One report we received advises that the same thing is happening in Eloff Street, only this time it is south bound traffic that is being severely disrupted as the trolley brigade move northwards against the flow. The report states that bus drivers are forced to veer across the road to avoid collisions. Two hawkers evidently had their trolleys tip over in a 'race' for their sites, causing a major traffic jam.

Whilst the Council must obviously take steps to address the immediate issue, the medium term plan is of course to basically do away with all informal trading activity on the pavements of the city. The first phase of this is progress in Braamfontein where all street traders were served notice by the Council to move out of the area or risk confiscation of goods. This is now happening but, as usual, the media gives great prominence to the minority who are screaming that rights are being infringed. As one might expect they are also using the opportunity to bring the whole racial issue into play. It is the rich 'white' property and shop owners who have forced this on the Council at the expense of the poor 'black' traders who, after all, are merely trying to scrape together a living. The other ploy being spld to the media is "we were never consulted." Both of these attitudes are pure, unmitigated drivel. The Hawker Association which is making all the noise was invited to attend all the workshops to discuss the new approach and didn't attend. This is exactly the approach that we have seen happen in many aspects of "grass roots negotiation" over the past five/ten years. If you aren't at the discussions or workshops you can say that you weren't 'consulted', if you attend, then you can't. I would have hoped that we would have matured somewhat over the past few years, but it doesn't appear so.

An excellent research report by the Urban Market Development Joint Venture commissioned by the Inner City Office and whose recommendations were approved by the Inner City Committee earlier this year places the informal trading issue into perspective. In the introduction to their Business Plan they summarise my short historical overview of last week with the following comment; "Johannesburg, the largest and richest city, attracted the greatest number of hawkers. It also attracted, particularly after the election, a more sophisticated trader from countries to the north and west where there are long established cultures of market trade and urban living. The resultant congestion on the streets, the over trading of a few items and the sale of illicit goods, has hurt the formal trade of the city. Hawking also creates an environment that makes for easy pickings for thieves; both the hawkers stock and customer's possessions."

The answer lies in creating market places where traders can not only trade under better conditions than being exposed on the streets and creating visual mayhem, but where they and their businesses can develop, where they can obtain ownership in the market, develop an asset base, and move beyond subsistence existence which, I suspect, is the current situation for a majority of traders. This is the essence of what is being done. Not clearing the streets of poor people trying to make a living but reclaiming the streets of the city in a way that will provide opportunities for both formal and informal trade.

The damage to the city through the totally unmanaged street trading together with other issues we are trying to address, can be seen in the horrific decline in values. A recent example was the sale of the Carlton Centre but a sale that has subsequently taken place of another of the city hotels, not that it has been trading as such for some time, emphasises the point. The current valuation is R93 million, the replacement value, R185 million. The property, to be converted to housing, was sold for R2.5 million! Far more is being lost in the city than can ever be compensated for by street trading.

The Report referred to above explains the approach being adopted; " The programme will invite other initiatives from amongst hawker, community and business entities, so that the programme can also respond to local demand, specialist knowledge and enterprise, and to other opportunities. As hawkers learn about the importance of synergy between the enterprises within a market, they as members and owners, will look to invite in others who will bring that needed variety or character.

The (much abused) xenophobia against the "African" trader as competitor can be replaced by a hawker/market member/owner search for the success of markets as "places." Within the atmosphere of personal growth and of enterprise growth, the African trader and the bookshop from Sandton that must return to the city through the markets, will become desirable business partners. The Trade Management programme forms an integrated organisation, management and finance system that draws on a variety of public, private and hawker/trader partners. Apart from building and running the markets, the programme contains a richly woven Member and Enterprise Development Programme to assist the hawkers to become successful entrepreneurs, market members and, by degree, owners and increasingly important future investors and property owners.

The markets are seen as combining trade, production, services, storage, public bath-house, housing, recreational and community components, where demanded and feasible. They may be likened to a small business persons "club", a launching pad for a new mercantile class."

Instead of red herrings and stimulating chaos, the responsible informal trader association should be seeing how they can be involved in the process that is going to lead to the empowerment of their members, or is it actually that aspect that is challenging them?

The first market is under construction in Yeoville and the clever design by Urban Solutions will prove to be a model that will be followed by many of our towns and cities.