Informal sector can play bigger role in job creation

The TRADE research focus area at the North-West University (NWU) hosted a successful online master-class event on 4 September.

The event was open to the public and focused on economic development. It was well attended by members of TRADE, students, leaders at local government level, leaders in business, and researchers from the University of the Free State (UFS), Stellenbosch University (SU) and the University of Johannesburg (UJ).

The theme for the day was the creation of opportunities at local level, for example in townships, with the aim of creating jobs.

“If a thousand jobs could be created in each of the local municipalities and metros in South Africa, there would be a total of 234 000 additional jobs,” says Prof Danie Meyer, a development economist and the director of TRADE.

Two master classes were presented by well-known and respected academics in the field of development economics. Prof Frederick Fourie, who is a distinguished professor at the UFS and a former rector of the university, presented his research on the informal sector in South Africa.

“In his opinion the informal sector is underestimated with respect to its role in employment creation. The stumbling blocks in the way of informal business people should be removed and facilities should be provided to ensure an enabling environment. As a result of the event, a small task team of specialists from different universities will be established to formulate a step-by-step manual for implementation in a pilot project,” says Prof Meyer.

The second master class was presented by Prof Philippe Burger, who is the vice-dean of the faculty of Economics and Management Sciences at the UFS.

Prof Meyer says Prof Burger’s master class was about the macro-economic situation in South Africa and the impact of Covid-19 on the economy. “In his opinion, the focus of growth support should be on the metropolitan areas of South Africa. The private sector should be allowed to play a larger role in the revitalisation of the local economy. High levels of economic growth are required in order to create jobs. Large-scale private and public investment is also required to kick-start the economy, and factors that prevent investment – such as policy uncertainty – should be removed.”

The next TRADE event is planned for 2 October 2020.

For more information, contact Prof Danie Meyer at daniel.meyer@nwu.ac.za.