By Gofaone Motsamai

When South Africa went into lockdown in response to the Covid-19 pandemic, the economic impact was immediate. Informal traders – those who operate without formal registration or protection – were among the most affected. With no income, no access to trading spaces and limited government support, many were pushed into a state of deep uncertainty.

A recent master’s study by Koketso Sereo, a lecturer in philosophy at the North-West University’s (NWU’s) Mahikeng Campus, examines how informal traders experienced the lockdown and how they adjusted to its restrictions. The study focuses on the practical challenges they faced and their coping strategies, and what their experiences reveal about the state’s approach to informal economic activity.

The findings point to a system that failed to recognise or support this group during the crisis. Many informal traders lost stock due to spoilage or confiscation, while others faced confrontations with law enforcement. The permit system, intended to regulate trade during the lockdown, became a barrier rather than a solution.

“The inefficiencies in the permit system, combined with the absence of clear guidelines, pushed some traders to operate unlawfully – not out of choice but necessity,” says Koketso.

She found that most traders were left to rely on their own resources. Some moved their operations to their homes. Others continued trading in public spaces despite the risk of fines or arrest. These actions were not taken lightly, but were seen as the only way to earn a living in the absence of institutional support. “The government failed to support them,” Koketso states in her findings.

Why graduates and others with skills are turning to informal trade

Beyond the day-to-day struggles of informal traders, the study also highlights important shifts in who is participating in informal trade. “While previous research often highlighted women with limited education as the face of informal trading, my findings show an increasing number of men entering the space, as well as people with post-matric qualifications.”
This shift reflects a broader employment crisis, where even graduates and skilled individuals are turning to informal trade as a last resort.

“The idea that informal trading is only for the uneducated is no longer accurate,” Koketso explains. “More people are turning to it because they have few other options.”

Despite their resilience, informal traders cannot continue to navigate national crises without adequate support, she argues. Her study recommends practical policy changes such as simplified permit systems, targeted financial assistance, access to training and improved communication between the authorities and informal traders.

“The resilience of informal traders needs to be supported by responsive governance and practical interventions. We need to see informal traders as part of the economy, not outside of it.”

Her research suggests that planning for future crises must include informal traders from the start. Without that, they remain exposed to the same challenges that Covid-19 made visible.

Koketso Sereo