Durban spends R260m on traders' stalls as 75 000 work the informal economy

eThekwini has spent about R260 million on capital projects over the three financial years from 2024/25 to 2026/27 to upgrade informal trading infrastructure, improve traders’ working conditions and widen economic opportunities, the municipality says.

The figure was presented at the fifth eThekwini Informal Economy Summit, held at the Durban Exhibition Centre and bringing together traders, government departments, financial institutions and other sector stakeholders. The summit was used to showcase support programmes, set out future plans, look at funding and identify practical ways to strengthen businesses and grow the informal economy.

According to Statistics South Africa’s Quarterly Labour Force Survey, roughly 260 000 people in eThekwini work in the informal sector, about 75 000 of them in informal trade. The city recorded an unemployment rate of 21.2% in the second quarter of 2026, the lowest among South Africa’s metropolitan municipalities.

Mayor Cyril Xaba told the summit the informal economy is a critical source of livelihoods and employment in the city. “The informal economy plays a vital role in the lives of eThekwini residents. It creates employment opportunities, supports families, and grows our local communities,” he said.

Traders at the summit watched a video of completed projects, including the recently launched Mansel Road Market and Lucky Mngwengwe Traders Precinct, and of developments still under way. Presentations covered capital projects, destination markets, the state of the city’s informal economy, spaza shop funding, township economic development and banking solutions.

Thirty-two traders from across the city’s regions were recognised at the Informal Traders Recognition Awards, in four categories: Youth-Owned Business, Innovative Business, Job Creation and Outstanding Compliance with Municipal By-laws. The winning businesses span hair and beauty, fashion and design, automotive services, recycling, photography, herbal trading and food retail, with recognised ventures including an internet café, drone services and beauty and massage services. Prize money totalled R224 000, and Standard Bank gave each winner a point-of-sale device valued at R6 000 for electronic payments.

Thembo Ntuli, chairperson of the municipality’s Economic Development and Planning Committee, reported back on commitments made at the previous summit. These include the refurbishment of more than 200 trading sites, construction of the Brook Street storage facility in the central business district, and funding secured for improvements at Bridge City, where work is expected to begin in December 2026.

Further projects are in the final stages of approval for implementation over the next three years, the municipality says. They include small business facilities, storage infrastructure, container trading sites at Sbusiso Mdakane and BB Section in uMlazi, the Berea Herb Market, the Bovine Head Market in Warwick Junction near Dalton, and the KwaMashu motor repair site.

The account is SAnews’s summary of the municipality’s announcements at the summit, not a full record of the proceedings. The R260 million covers capital projects over the three listed financial years and is not broken down by project in the summary.

This report is based on SAnews (South African Government News Agency): https://www.sanews.gov.za/south-africa/ethekwini-invests-r260m-upgrade-informal-trading-infrastructure