Azra Hoosen | ah@radioislam.co.za
20 June 2025 | 12:30 CAT
3 min read

Informal work is woven into the fabric of South Africa’s urban landscape. From street vendors setting up stalls before dawn to waste pickers collecting recyclables, these individuals are often misunderstood or dismissed. Associate Professor Marlese von Broembsen, a labour lawyer and researcher at the University of the Western Cape, said it’s time to reframe how we understand informality and justice in the economy.

In terms of the International Labour Organisation’s definition, it covers all economic activities by workers or economic units that are, in law or practice, not covered or insufficiently covered by formal arrangements. “So really, what they’re saying is it’s a question of law. Law determines whether you are informal or formal,” she said.

Von Broembsen added that statistically, there’s a distinction between two groups of workers—those who receive wages and those who are self-employed. “In the case of people on wages, they could be covered by labour law—for example, domestic workers. But if the employer is not contributing to UIF, not adhering to minimum hours or wages, then the domestic worker would be informal,” she explained.

As for self-employed workers, she noted that many are in the informal economy because there are no formal job opportunities available, for example, people like street vendors, in taxi ranks, in townships, in markets, waste pickers, informal taxi drivers, etc.

She challenged the belief that informal equals illegal or unproductive. “They are certainly not unproductive. I’ve twice had the privilege of staying with a street vendor in Dakar, Senegal and Ahmedabad, India. And I cannot tell you how long people work—the hours spent sourcing ingredients, setting up their stall every day, packing out their goods, and selling. Illegal is this idea that just because you’re not covered by law, somehow you’re illegal. In fact, they are not. We need to think of them as extra-legal. It’s harmful because it’s a way of othering people—of denying them the dignity of work,” she said.

Von Broembsen emphasised that in sub-Saharan Africa, 43% of informal workers are street vendors, particularly women, and many have been regulated out of public space through colonial and modern laws. “We’ve seen this perpetuated by urban renewal programs, often backed by the World Bank, the idea of having a ‘world-class city’ or the ‘cleanest city in Africa,’ which often involves a mass removal of street vendors,” she said.

She pointed to Johannesburg’s 2013 operation, where 15,000 vendors were removed, many with permits and many who had traded for years.

Regarding proposed solutions, von Broembsen is critical of the ILO and other institutions that promote business training and entrepreneurship support. “These are not new suggestions; they’ve been around since the 1990s. South Africa had its own small enterprise strategy in 1996, which went exactly this route,” she said.

She explained that, while the informal sector is diverse, most vendors will not benefit from credit or training opportunities. “What they typically want is secure rights to trade, storage so they don’t have to pick up goods every day, infrastructure, and services like toilets. They know what they need, and they are organised. There’s a need to engage directly with street vendor organisations,” she said.

On the issue of identity, von Broembsen stressed that informal workers are not entrepreneurs; they are workers. “Typically, an entrepreneur sees a gap in the market and wants to grow. But if you go and look at vendors, they usually sell the same goods,” she added.

This distinction matters. “If street vendors are workers, they would be entitled to engage with local authorities collectively, have rights to social protection, and a voice at NEDLAC,” she said.

Social protection is another area where informal workers are left out. “They don’t have access to UIF and cannot even pay into anything like UIF. They’re not covered by labour laws, nor registered as enterprises. So they’re stuck,” she noted.

Von Broembsen recalled the story of John Makiwane, a Durban vendor and organiser who lost his goods because of a technicality in the bylaws: “He had a permit for 15 years. His assistant went to the bathroom, handed the permit to the next table, and at that moment, the police came. They confiscated his goods. Makiwane took the case to court and won, but never got his sandals back. Even if we contravene the speed limit, our car isn’t confiscated. But vendors’ livelihoods are taken away.”

There’s also a misconception that informal workers don’t pay taxes. “They pay VAT and permit fees. But more importantly, most don’t earn above the tax threshold. And in this country, workers earning below the threshold don’t pay tax. So why should informal workers?” she said.

Labour law reform is crucial. “Section 23 of the Constitution says all workers have labour rights—the right to form and join trade unions and to bargain collectively. But these rights are not realised in law. Instead, they are regulated through bylaws focused on regulating public space, not protecting workers,” von Broembsen argued.

Globally, informal workers have fought for recognition. “They fought to be recognised as workers, not as businesses. In 2015, they fought hard for ILO Recommendation 204, which calls for public space to be seen as a workplace and affirms their right to collective bargaining,” she noted.

Von Broembsen highlighted ways ordinary citizens can support them: “There are examples in Pretoria and Johannesburg where residents have recognised waste pickers, sorted their waste, and engaged local authorities. For street vendors, support them by buying from them. Not because you feel sorry, but because they’ve created their own jobs, which is extraordinary,” she said.

According to von Broembsen, during COVID-19, 18 African countries recognised informal food traders as essential workers. “They’re trying to contribute to society and the economy, and we should treat them as equals,” she said.

The next time you walk past a waste picker or street vendor, consider this: Are they really informal, or is it the system that’s failed to formally recognise their worth?

LISTEN to the full interview with Muallimah Annisa Essack and Associate Professor Marlese von Broembsen, here.