The undesirable practices that are inherent in the informal economy cannot be left unchallenged, as they go against the grain of our constitution and the Freedom Charter, cautioned South Africa’s Labour Minister, Mildred Oliphant.

Oliphant told the 2nd National Informal Economy Summit 2016 that the Freedom Charter emphasized the protection of all workers regardless of whether they are in formal or informal economy.

The two-day Summit started in Bloemfontein at the President Hotel today. It is held under the theme: “Uplifting the Informal Economy and Creating Pathways to Formalisation”.

The Informal Business Summit was organised by National Department of Small Business Development and the National Department of Labour in partnership with National Department of Economic Development; the Free State Small Business Development, Tourism and Environmental Affairs Department; and the International Labour Organization (ILO).

“It is a fact that workers in the informal economy are also vulnerable to violence, including sexual harassment, and other forms of exploitation and abuse including Child labour,” said Oliphant.

The Minister said informal economy thrives on the back of high unemployment, underemployment, poverty, gender inequality and precarious work.

“It is more prevalent in such circumstances, especially as the much-needed income generating activities. It is also relatively easy to enter as there are no educational requirements, skills or technology barriers. It is important to note however, that most people enter the informal economy not by choice, but out of a need to survive and have access to basic income-generating means,” Oliphant said.

Oliphant said based on the Quarterly Labour Force Survey in the first quarter of 2012, there were 2.1 million people in South Africa who were active in the informal economy and 857,000 were women.

She said to many entry into informal sector was seen as an alternative to unemployment.

Source: The South African Department of Labour