The contribution of street vendors on the economy of Thulamela Local Municipality in Limpopo Province, South Africa

Abstract

Street vending has always been undermined by local authorities although they play a vital role in supporting the livelihoods and economies especially in developing countries. Street vendors are faced with different challenges such as harassment and evictions from certain places; and sometimes local authorities confiscated their stock. The dynamics of the street vending sector need to be better understood so that it could contribute positively to the economy of Thulamela Local Municipality. In addition, the aim of this study was to examine the contribution of street vendors to the economy of Thulamela Local Municipality, Limpopo Province, South Africa. Literature review that informed this study revealed that most governments have begun to recognize the street vending sector as an informal economic sector that contributes to the local economy by creating jobs and supporting urban poor families through taxes and vending licenses. The study was conducted in Thohoyandou which is the economic hub of Thulamela Local Municipality, Limpopo Province, South Africa. The study used a qualitative design, purposive sampling method, and an interview guide to collect data for this study. 18 street vendors and 2 municipal officials participated in this study. A semi-structured interview with selected street vendors was conducted in Thohoyandou. The study revealed that unemployment, the need to support the family and family dysfunction are the most important factors that motivated people to enter the street vending business. Street vending is a profession like any other professions that could reduce the unemployment rate in Thulamela Local Municipality. Despite all these positive contributions, the municipality did not regard street vending as an opportunity but a liability. By processing licenses quickly and providing basic infrastructure for those currently selling, local authorities would be creating an environment in which street vendors can legally sell their products.