“Dit was erg, baie, baie erg.” Die effek van COVID-19 op informele straathandelaars in die middestad van Kaapstad

Abstract

“It was bad, very, very bad.” The effect of COVID-19 on informal street vendors in the city centre of Cape Town The impact of the COVID-19 pandemic is currently reverberating throughout the formal and informal sector of the South African economy – including informal street vendors. The informal sector and key activities such as informal street trading play an important role in the South African economy and the unique socio-economic context of South Africa. Despite optimistic theoretical beliefs that the informal sector will mitigate the adverse effects of external shocks (as with the COVID-19 pandemic) by absorbing the job losses that occur in the formal sector, previous studies suggest the opposite. The informal sector is often disproportionately affected by external economic and health shocks, especially in southern Africa (Bassier et al ., 2020; International Labour Organisation (ILO), 2020c; Rogan & Skinner, 2018; Skinner & Rogan, 2019). Against this background, the aim of the study was to explore the impact of the COVID-19 pandemic on the lives and livelihoods of informal street traders. A qualitative research approach in the form of a descriptive case study was used to conduct an in-depth investigation of the effect of COVID-19 on the lives and livelihoods of street vendors in Cape Town’s city centre. A qualitative approach provides the opportunity to conduct a more comprehensive and in-depth analysis around the research question. The specific area than before COVID-19. More specifically, three of the businesses made an average monthly profit of between R6 000 and R10 000 before COVID-19 and two of the businesses made an average daily profit of between R250 and R300. In the last year since the pandemic, however, three of the businesses generated an average monthly profit of between R2 000 and R5 000 and several businesses generated an average daily profit of between R100 and R200. Street vendors use various strategies, such as good customer service, efforts to obtain the best possible location, the acquisition of fresh stock, and the use of social media and electronic payment instruments in an attempt to deal with the adverse consequences of the COVID-19 pandemic. However, despite their best efforts, several respondents had no choice but to reduce their employees’ working hours and/or remuneration. The challenges that the COVID-19 pandemic presents to informal street vendors in Cape Town’s city centre are therefore an on-going daily reality. Continuous state support and follow-up studies with the same group of respondents to examine the impact over the medium and longer term are necessary. An important example of this is action research with respondents on the impact of the existing assistance measures on their lives and living conditions. These research results may help to develop action plans that will enable the city, province and country to deal with future exogenous shocks in a manner that would ensure some mitigation of the adverse effects of similar shocks on the structurally vulnerable sections of the society and the economy.