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South Africa’s 5.2 million informal workers will benefit from the launch of the Informal Economy Development Forum (IEDF), a new body set up to drive growth within the sector, support informal economy workers and function as the conduit between Government, Corporate South Africa, and the informal economy.

David Venter, Chairperson of the IEDF says: “The informal economy represents one third of all employment in South Africa and is a critical economic incubator for both job creation and entrepreneurship, yet it receives very little support from Government and the formal economy, and it is exactly this which we are aiming to change.”

“The informal economy is a strategic partner and important economic participant, and it is in everyone’s interest that this sector is protected, supported, and geared for growth.  A strong informal sector that is central to the economic development goals of our country is also important for alleviating poverty and joblessness and for embedding a culture of inclusive and sustainable growth.”

The IEDF’s key objectives are to improve the business, labour, and regulatory environment in which informal businesses operate, ensuring equitable access to skills development and training, finance, and the removal and simplification of regulatory requirements that prohibit growth.

“People who run informal or micro businesses are inherently motivated to succeed.  They are hardworking initiative-takers who, with the appropriate training, skills development and business environment, can play a larger, more valuable role in the economy,” says Venter.
 

Key areas on which the IEDF will focus include:

• The formalisation of the informal economy.
• Working with Government, labour, formal business, and civil society to drive an inclusive economic transformation agenda for informal workers and businesses.
• Removal of regulatory and legislative barriers and red tape encumbering growth.
• Driving employment, especially amongst the youth.
• Facilitating education, skills development and social protection of informal workers and businesses; and
• Developing training programmes to drive effective and professional labour practices within the informal economy.

The official launch was attended by the Chair of Parliament’s Small Business Development Committee, Cosatu, South African Women in Mining Association (SAWIMA), South African Informal Traders Alliance (SAITA), Trade Union of Musicians of South Africa (TUMSA), ABSA, Standard Bank , Vodacom  and other Corporates and national member based organisations in the Informal Economy.  

Issued by Informal Economy Development Forum (IEDF)