“Interchange for the informal market? An investigation of informal trading in and around Nolungile station, Khayelitsha, Cape Town”

Abstract: There are over 1.7 billion people worldwide working in the informal economy, (Jutting & De Laiglesia, 2009). In South African over 2 million individuals work in this part of the economy, where the majority operate in informal retail. Many traders operate at transport interchanges due to transport nodes being natural markets because of foot traffic, however, if not managed properly, they can become areas of contestation. The parastatal Passenger Rail Agency of South Africa (PRASA) has embarked on a National Station Upgrade Programme that will develop 600 stations around the country. These stations are not only important for access and mobility, but are also important to the livelihoods of the informal traders.

Khayelitsha Township presents itself as an ideal case study in examining the township economy, for it has a diverse range of informal economic activities and the area is about to change significantly due to a planned station upgrade, for the primary train station - Nolungile. Interviews were conducted with 23 traders through a purposive sampling framework, along with 10 commuters. The main objective of this research was to examine the factors and processes that obstruct traders in securing their livelihoods in township economies but also to assess the potential impact on traders of the planned upgrades. Among key findings from this research is that there is a disjunction between city policy statements on the informal economy and implementation as it manifests in this area. Despite 21 years of freedom, traders are still compelled to trade in inadequate conditions. Additionally, unlike the committed management approach established in the inner city, the City of Cape Town is devolving the management of street trading in Khayelitsha, in what could be described as a ‘hands off’ approach to managing the area. Furthermore, the analysis of the PRASA renovations suggests that they are likely to have a very negative impact on the traders, highlighting concerns of the impact this nationwide project may have.

There is a dynamic range of trading that occurs in Khayelitsha which supports a lot of local residents and despite challenges faced, many traders support and maintain their households through this economy. The dissertation concludes with recommendations and argues that for sustainable livelihoods to be realised and for traders to excel, the current modus operandi in approaching informality needs to change. Through an exploration of this site, this dissertation will highlight priority interventions to nurture and support traders in this area.

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