Promulgation Process Outcomes 

•The outcomes of the City’s extensive investigations in terms of S 6A (2) of the Businesses Act 71 of 1991 (“Businesses Act”). 

•The proposed plan for effective management of informal trading in the inner city” and “a resolution in terms of section 6 A (3)(b)”; 

Summary: 

•All necessary investigations have been completed, including extensive consultations with all stakeholders. 

•Proposed solution is to increase informal trading capacity in the inner city while working towards a well-managed and supported diverse trading sector which is effectively integrated into the developmental goals of the City. 

•There is no need for the City to prohibit trading in areas already designated .Several trading areas in the plan are already demarcated trading areas and the plan seeks to better regulate and improve better effective management including creating other areas . 

•Current challenges can be addressed in a way that creates new jobs and economic opportunities 

The Businesses Act (De-Proclamation /Restriction of Trading Areas in terms of S6A (2) -In compliance with S6A(2) (b) and (c) (i) and (ii) of the Businesses act, the City engaged with affected stakeholders 

-Throughout the process of engagement, the City faced challenges from legal representatives of the traders regarding the process being followed despite the fact that all the stakeholders were extensively engaged on all aspects of the process 

-The next step in terms of S6A(2)(b) would be to request Council to declare a motion to restrict or prohibit trading which plan would be advertised for 21 days 

However, the extensive engagement and investigations have revealed that 

– There is no need for the City to prohibit trading in areas already designated 

-Legal Opinion obtained ;Risk Assessment completed and Research  Completed ,Feasibility Studies Completed and Stakeholder submissions 

The Businesses Act Paradigm Shift – S6A(3) (b)Demarcation of Trading Areas 

¡This section allows the City to 

“set apart and demarcate stands or areas for the purposes of the carrying on of the business of street vendor, pedlar or hawker on any public road the ownership or management of which is vested in the local authority or on any other property in the occupation and under the control of the local authority and

“extend, reduce or disestablish any such stand or area.” 

It must be remembered that this section does not have the strict requirements set out in S6A(2) (c), even though the City followed this process to arrive at the current paradigm shift. 

As there will be no restriction or prohibition during this stage, there is no requirement for a plan to be advertised as was required in terms of S6A(2) (e) of the Act 

Regards 

Xolani   Nxumalo

Deputy Director Informal Trading

Sustainable Employment Facilitation