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South Africa’s informal economy: Reframing debates in national policy

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  • Christian M Rogerson

Abstract

In common with much of the global South, the policy environment in South Africa surrounding the informal economy is highly significant for local development futures. The objective in this paper is to unravel the shifting trajectories and reframing of national government policy towards the informal economy in South Africa since the 1994 democratic transition. It is disclosed that, notwithstanding a rhetoric of support for the informal economy as part of small, medium and micro-enterprise (SMME) policy, a national policy framework for supporting the informal economy in South Africa was initiated only in 2012. A pro-development narrative is provided in national policy documents and is accompanied by the progressive roll out of support interventions seeking to address certain of the key challenges of informal entrepreneurs. The most controversial aspects of the new policy framework surround initiatives introduced in proposals to ‘improve the regulatory environment’ for local informal entrepreneurs. What exists within national policy is a pro-development approach for South African informal entrepreneurs linked to an anti-developmental agenda towards migrant entrepreneurs. Arguably, South Africa is far from having established a set of inclusive policies towards the country’s informal economy and a suite of interventions that acknowledge its contributions for national economic development.

Suggested Citation

  • Christian M Rogerson, 2016. "South Africa’s informal economy: Reframing debates in national policy," Local Economy, London South Bank University, vol. 31(1-2), pages 172-186, February.
  • Handle: RePEc:sae:loceco:v:31:y:2016:i:1-2:p:172-186
    DOI: 10.1177/0269094215613505
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    References listed on IDEAS

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    1. Deborah Potts, 2008. "The urban informal sector in sub-Saharan Africa: from bad to good (and back again?)," Development Southern Africa, Taylor & Francis Journals, vol. 25(2), pages 151-167.
    2. Christian Rogerson & Jayne Rogerson, 2010. "Local economic development in Africa: Global context and research directions," Development Southern Africa, Taylor & Francis Journals, vol. 27(4), pages 465-480.
    3. Christian Rogerson, 2010. "Local economic development in South Africa: Strategic challenges," Development Southern Africa, Taylor & Francis Journals, vol. 27(4), pages 481-495.
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