Finance and Economic Opportunities
- Whether his Department has started work on a targeted strategy for and approach to the informal economy; if not, why not; if so, what are the relevant details;
- (a) what is his Department’s definition of (i) informal economy and (ii) SMME and (b) which sectors of the Western economy are regarded as falling in either of the two;
- (a) what engagements have he and his Department had with the informal sector and/or SMME bodies since he took office, (b) what are the (i) dates, (ii) names of organisations and (iii) attendance registers and agendas of these meetings and (b) can copies of the minutes and reports of these meetings be made available?
- Whether his Department has started work on a targeted strategy for and approach to the informal economy; if not, why not; if so, what are the relevant details;
Please refer to the reply to question 15 of question paper 25 of 2021.
- ]a] what is his Department’s definition of:
]i] informal economy
The informal economy is the diversified set of economic activities, enterprises, jobs, and workers that are not regulated or protected by the state.
The International Conference of Labour Statisticians ]ICLS] has approved international statistical definitions of the two distinct but related concepts. The ‘informal sector’ ]enterprise-based definition] refers to the production and employment that takes place in unincorporated, small or unregistered enterprises ]ICLS, 1993]. The ‘Informal economy’ refers to all units, activities, and workers so defined and the output from them.
]ii] SMME
The definition of a Small Medium and Micro Enterprise ]SMME] is defined in terms of the National Small Enterprise Act, 1996 ]Act No. 102 of 1996]. Schedule 1 of the National Small Enterprise Act, ]Act No. 102 of 1996], read with the National Enterprise Amendment Act, 2003 ]Act No. 26 of 2003] and the National Small Enterprises Act, 2004 ]Act No. 29 of 2004] defines a ‘small enterprise’ as follows:
A separate and distinct business entity, together with its branches or subsidiaries, if any, including cooperative enterprises, managed by one owner or more predominantly carried on in any sector or subsector of the economy mentioned in column 1 of the Schedule and classified as a micro, a small or a medium enterprise by satisfying the criteria mentioned in columns 3 ]total full-time equivalent of paid employees] and 4 ]total annual turnover] of the Schedule.
]b] Which sectors of the Western economy are regarded as falling in either of the two;
The informal economy is inextricably linked to the formal economy. Various economic sectors have elements of both formal and informal businesses. For instance, many informal businesses can be found in the retail, motor trade and repair sector in the provision of both products and services and at the same time many small, formal businesses can also be found in this sector. The classification of economic sectors into either informal businesses of SMMEs is not possible since both types of business enterprises straddle across most sectors of the economy.
- ]a] what engagements have he and his department had with the informal sector and/or SMME bodies since he took office,
Both the Department and I have had various engagements with the informal sector and/or SMME bodies since I took office. It should also be noted that in addition to the meetings listed below, my Department and I have also had numerous meetings with individual informal and small business owners during this period.
The following engagements were held with the respective organisations:
|
3 ]b] ]i] Date |
3 ]b] ]ii] Name of organisation |
3 ]a] Engagement |
Ministerial/Departmental |
|
7 March 2022 |
South African Informal Traders Alliance ]SAITA] |
Engaged with SAITA on research inputs into the Western Cape Ease of Doing Business non-metro support programme that the department is undertaking. |
Departmental |
|
18 February 2022 |
Western Cape Informal Traders Coalition ]WCITC] |
Departmental invitation extended to the WCITC to attend a webinar on the opportunity for SMMEs in the wholesale and retail related space to access funding for small business development training. |
Departmental |
|
Dec 2021- present |
|
Engaged with organised business formations ]sector bodies and/or chambers] and surveyed them to identify challenges and opportunities to growth.
|
Departmental |
|
28 October 2021 |
WCITC |
Departmental invitation extended to the WCITC to attend a webinar on access to funding. |
Departmental |
|
10 -18 October 2021 |
SAITA/WCITC |
SAITA Chairperson requested assistance in engaging the George Municipality around informal trading challenges in the area.
DEDAT engaged the municipality and arranged an engagement with the George Municipality on 14 October 2022 with DEDAT officials facilitating the session.
More direct dialogue between SAITA and local traders with the local authority was agreed to, in the engagement. |
Departmental |
|
8 September 2021 |
Afrikaanse Handels Instituut ]AHI] |
Engaged AHI on research inputs into the Western Cape Ease of Doing Business non-metro support programme that the department is undertaking. |
Departmental |
|
8 September 2021 |
WCBOF |
Presentation to the Western Cape Business Opportunities Forum on the Ease of Doing Business and the support to and/or potential collaborations for SMME’s. |
Departmental |
|
24 August 2021 |
Cape Chamber of Commerce |
Minister Maynier discussed the Western Cape Economy |
Departmental/Ministerial |
|
18 August 2021 |
Federate Hospitality Association of Southern Africa ]FEDHASA] AGM |
Annual General Meeting with the Hotel and Restaurant Industry |
Departmental/Ministerial |
|
2 August 2021 |
Meeting with South African Liquor Brand owners Association ]SALBA] |
Minister met with members of the alcohol industry |
Departmental/Ministerial |
|
16 July 2021 |
Business Webinar |
To discuss the Western Cape Governments preparations for public unrest |
Departmental/Ministerial |
|
29 June 2021 |
Cabinet meets Business |
Cabinet meets with businesses to discuss any issues they are facing |
Departmental/Ministerial |
|
17 June 2021 |
WCITC |
The engagement between DEDAT and WCITC focused on outlining the key projects and support available to assist the sector and to understand their key challenges. The meeting agreed to continue the engagement process and to discuss areas of possible synergies. |
Departmental |
|
8 June 2021 |
WCITC/SAITA |
WCITC request to the Department for regional municipal information ]Municipal LED Manager details] as SAITA is piloting point of sale devices in the Western Cape. |
Departmental |
|
4 June 2021 |
Mitchells Plain Chamber of Commerce |
Minister Maynier visited Monwabisi resort, The Look Out Hill and The Hood Kitchen |
Departmental/Ministerial |
|
11 May 2021 |
SMME Booster fund Event |
Minister launched the SMME booster fund |
Departmental/Ministerial |
|
29 September 2020 |
WCITC |
The Department distributed to stakeholders’ awareness information of the COVID-19 Business Relief Fund with the WCITC. |
Departmental |
|
3 September 2020 |
West Coast business chambers |
Minister met with several West Coast business chambers in Saldanha Bay |
Departmental/Ministerial |
|
08 August 2020 and 29 July 2020 |
WCITC |
The Department distributed to stakeholders’ awareness information of the Business Chamber Support Programme - shared with the WCITC.
|
Departmental |
|
17 June 2020 |
Business visits in Mitchells Plain |
Business safety kits launch |
Departmental/Ministerial |
|
11 June 2020 |
Garden Route Business Chamber |
|
Departmental/Ministerial |
|
4 June 2020 |
George Business Chamber |
|
Departmental/Ministerial |
|
June 2020 |
WCITC |
During engagements with WCITC a short survey was held with informal traders on how they shared information and engaged their members on Covid-19 regulations. |
Departmental |
|
26 May 2020 |
Cape Chamber of Commerce |
A dialogue with Businesses |
Departmental/Ministerial |
|
14 May 2020 |
WCITC |
The Department distributed to stakeholders’ awareness information on the national governments’ Spaza Shop application process with the WCITC. |
Departmental |
|
12 May 2020 |
WCITC |
The Department distributed to stakeholders’ awareness information on the Financial Management Communique 3 of 2020/2021: Procurement of Fabric / Cloth Face Masks with the WCITC |
Departmental |
|
12 May 2020 |
WCITC |
The Department distributed to stakeholders’ awareness information on how to apply for food parcels at the City of Cape Town. |
Departmental |
|
8 May 2020 |
WCITC |
The Department distributed to stakeholders’ awareness information on their preparedness for Covid-19. |
Departmental |
|
5 May 2020 |
West Coast Chamber of Commerce |
A dialogue with Businesses |
Departmental/Ministerial |
|
30 April 2020 |
Township retailers, spaza shop owners and informal retailers |
Engagement with these stakeholders and the WCG Department of Health to discuss the impact of Covid-19 on these businesses. |
Departmental |
|
28 April 2020 |
Township/Informal Economy – EDP |
Minister and the Department met with the EDP to discuss activities in response to Covid-19, including communications and support to informal businesses |
Departmental/Ministerial |
|
26 April 2020 |
SAITA |
SAITA responded to the Department’s call to organisation to respond on the impact of level 4 lockdown restrictions on local businesses. |
Departmental |
|
23 April 2020 |
WCITC |
PLAAS hosted a webinar on the informal trader and the challenges faced by informal traders during COVID-19. WCITC invited the Department to attend the COVID–19 webinar. |
Departmental |
|
16 April 2020 |
United Khula Informal traders |
The Department received a request from Thozama Gwente Chairperson of the United Khula Informal traders for food parcels. The Department responded to Ms Thozama Gwente as a member of the WCITC providing guidance on accessing food parcels. |
Departmental |
|
16 April 2020 |
SAITA |
Telephonic survey with South African Informal Traders Association ]largest informal readers association] regarding the support provided to informal traders amid COVID-19. Such survey was used to inform and tailor the support to the informal sector. |
Departmental |
|
07 April 2020 |
SAITA, NAFCOC, GDF and Black Business Chamber ]BBC] |
The Department engaged SAITA and other informal trader associations such as, NAFCOC, GDF and BBC to establish the type of challenges they are facing and what they require as a sector.
The Department engaged the organisations on the concerns and issues that informal traders are experiencing in the opening of the informal sector during lockdown level 4 restrictions. |
Departmental |
|
22 Novermber 2019 |
South African Table Grape Industry |
Minister met with this industry body |
Departmental/Ministerial |
|
20 June 2019 |
FEDHASA Luncheon |
|
Departmental/Ministerial |
|
Financial year 2020/2021 |
WCITC |
The Western Cape Informal Traders Coalition obtained support from the Department via a public call for proposals to deal with the effects of Covid-19 on local businesses.
The Business Chamber Support Programme ]BCSP] launched by the Department of Economic Development and Tourism ]DEDAT] was done in response to the devastating effects of COVID-19 on business. The BCSP geared at business chambers, associations and coalitions, aimed at providing a once off grant to those organisations that are affected by COVID-19 to enhance their sustainability and thereby support their members. Through a Call for Proposals process, project ideas were submitted and within the fiscal envelop of this initiative, five organisations were supported. The WCITC was supported to the value of R149 950.00.
|
Departmental |
|
Financial year 2020/2021 |
Cape Chamber of Commerce and Industry, Tygerberg Business Chamber, George Chamber, V&A Waterfront |
These business chambers/associations obtained support from the Department via a public call for proposals to deal with the effects of Covid-19 on local businesses.
|
Departmental |
|
Financial Year 2020/2021 |
WCITC |
Received request for assistance from the WCITC on the issuing of permits during level 4 to traders in Municipalities who were only offering essential services. The traders were experiencing challenges getting permits issued. |
Departmental |
|
2020 and onwards |
Cape Chamber of Commerce and Industry, NAFCOC, Afrikaanse Handels Instituut ]AHI], BBC, WCITC/SAITA, Western Cape Business Opportunities Forum ]Wecbof], etc. |
Dissemination of information relevant to businesses ]formal and informal] via WhatsApp group to keep businesses abreast of available support, policy changes, webinars and events, etc. |
Departmental |
|
2019 and onwards |
SMME bodies and the informal sector |
The Office of the Consumer Protector ]OCP] has since 2019 implemented a specific consumer education programme for SMMEs and the informal economy. This programme provides attendees with consumer education on the topic of financial literacy and the Consumer Protection Act. The OCP has conducted 72 engagements with individuals within the aforementioned sector. |
Departmental |
|
|
|
|
|
|
|
|
|
|
- Attendance registers and agendas of these meetings
Due consideration should be given to the Protection of Personal Information Act in the dissemination of information since the content thereof can be considered as confidential and/or private.
]b] Can copies of the minutes and reports of these meetings be made available?
Due to the nature of these engagements such documentation is not available.
