Durban’s informal economy to benefit from capital projects

Informal trading infrastructure, improved working conditions and expanded economic opportunities for traders are on the cards as the eThekwini Municipality invests R260m in capital projects over three financial years, from 2024/25 to 2026/27.

The investment was highlighted during the fifth eThekwini Informal Economy Summit held at the Durban Exhibition Centre from October 20-21.

The convention was aimed at presenting existing support, outlining future plans, exploring funding opportunities and identifying practical ways to strengthen businesses and grow the informal economy. Presentations covered capital projects, destination markets, the state of the City’s informal economy, spaza shop funding, township economy development and banking solutions.

Traders also viewed a video showcasing completed projects, including the recently launched Mansel Road Market and Lucky Mngwengwe Traders Precinct, as well as progress on developments underway.

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According to the Mayor of the eThekwini Municipality, Cyril Xaba, the informal economy remains a vital source of livelihoods in the City.

“According to Statistics SA’s Quarterly Labour Force Survey, about 260 000 people in eThekwini work in the informal sector, including some 75 000 in informal trade. The City also recorded the lowest unemployment rate among SA’s metros in the second quarter of 2026, at 21.2%,” he said.

Xaba added that the informal economy plays a vital role in the lives of eThekwini residents, and that it creates employment opportunities, supports families, and grows the local communities.

The summit culminated in the Informal Traders Recognition Awards, which honoured 32 traders from across the City’s regions in four categories, namely Youth-Owned Business Innovative Business, Job Creation, and Outstanding Compliance with Municipal By-laws.

The winners run diverse businesses, including hair and beauty salons, fashions and design, automotive services, recycling, photography, herbal trading, and food retails. Innovative ventures included an internet café, drone services, and beauty and massage services.

Prize money totalled R224,000. Standard Bank also gave each winner a point-of-sale device, at the value of R6,000 to enable electronic payments.

The chairperson of the Economic Development and Planning Committee, Thembo Ntuli, reported progress on commitments made at the previous year’s summit. These include the refurbishment of more than 200 trading sites, construction of the Brook Street storage facility in the Durban CBD and secured funding for improvements at Bridge City, where work is expected to commence in December 2026.

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Ntuli further stated that the projects were in the final stage of approval for delivery over the coming three years, including small business facilities, storage infrastructure and container trading sites at Sbusiso Mdakane and BB section in uMlazi, the Berea Herb Market, the Bovine Head Market in Warwick Junction, Dalton and the KwaMashu motor repair site.

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