Industry organisation the South African Informal Traders Alliance (Saita) says the Magistrate’s Court in Blue Downs, in the Western Cape, had withdrawn all charges against an informal trader who was charged by the City of Cape Town for operating without a permit. 

“This is a victory for all informal traders, and a strong warning to city officials, and all municipalities across the country, that President Cyril Ramaphosa’s waiver of permit requirements until December 2022 are valid and override local by-laws,” says Saita membership national director Paul Bester.

Saita approached the court to enforce the permit waiver, which is valid until December 31 this year, because traders with expired permits are still being harassed and fined despite the waiver.

Bester was representing long-time informal trader Ettienne Gideons, who appeared in court on a charge of breaching city by-laws that prohibit informal traders from operating without a valid permit.

In August 2020, Ramaphosa announced the relaxation of permit requirements for traders until the end of 2022. This followed a directive published by the former Small Business Development Minister Khumbudzo Ntshavheni on July 15, 2020.

"An extension was given to all informal traders whose permits had expired, or who began trading and were unable to apply for business trading permits owing to lockdown regulations," Saita says.

The City of Cape Town decided not to implement the national directive, but rather, on January 6, issued a regulation recognising that valid permits that have lapsed would not need to be renewed until June 30.

Despite this regulation, informal traders continue to be fined and harassed for expired permits by the city’s law enforcement, says Saita.

Gideons has been a career trader for more than ten years. On January 14, he was trading in a designated, legal trading area outside the Ellerines Speciality Store in the city when he was fined for having an expired traders’ permit. The most common products sold by traders such as Gideons are fruit and vegetables, dairy products, chips, sweets, cold drinks, cigarettes and other tobacco products, depending on what products are available and in demand.

“Despite a very clear and unambiguous directive from the highest office in our country, and a City of Cape Town mayoral committee regulation allowing traders a grace period until June 30, in Cape Town, informal traders in the city continue to be harassed and targeted by law enforcement daily, and often have their goods confiscated. This practice has to stop immediately, and we believe the court will agree,” Bester says.

“The President in his State of the Nation Address acknowledged red tape is crippling for business, especially informal and micro-businesses, as has the City of Cape Town on numerous occasions. Yet the City is ignoring a national directive, as well as its own regulation, despite them being a clear intervention aimed at unblocking the path for business to operate and flourish.

“Informal and micro-businesses are the backbone of our economy. These businesses are the incubators for jobs, entrepreneurship, and contribute a third of all jobs in the country. It is inconceivable that they are treated so poorly. What is required is an urgent and significant re-think in the way they are treated by government, law enforcement and municipalities,” he says.

Saita is encouraging all informal traders, whether they are Saita members or not, to report trading licence harassment by calling or sending a WhatsApp message to 061 547 5879.