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1. Introduction
This paper examines the participation of non-South African informal sector street traders and hawkers in regional cross-border trade and the implications of this trade for immigration and customs policies and practices.
In a paper given to the Green Paper Task Group on Immigration (Davies, 1997) presented an overview of patterns of trade between South Africa, the region and the rest of the continent. Focusing on the patterns of regional formal trade at a macro-level he highlighted their importance to the economies of South Africa and its neighbours while identifying some of the implications of these patterns for the formation of immigration policy.
In the past 10 years, and more particularly in the last 6 years, South Africa has opened up to trade with other African countries. While sanctions and the self-imposed isolation of the apartheid years restricted trade between South Africa and the rest of Africa, trade did take place, and by 1988, 10% of South Africa's export trade went to the rest of Africa (Bouillon, 1997:4).
South Africa's export trade with her Customs Union partners amounted to over R15 billion in 1993 (Davies, 1997). Trade with non-SACU SADC countries reached R9.7 billion in 1995 (Davies, 1997). South Africa's growing trade with her fellow African countries is not just restricted to the region. Including SACU countries, trade with other African countries amounts to 31.7% of South Africa's total trade, and 12.8% without SACU countries (Davies, 1997).
One of the features of immigration to South Africa in the 1990's has been the growth in the numbers of immigrants arriving from central and west Africa. While the links of these largely francophone countries to South Africa may appear to be tenuous, it is worth remembering the political relationships between the governments of Zaire, the Cote d'Ivoire, Gabon and the South African government, as well as the economic relationships that emerged from these interactions. In 1988, trade with Zaire ranked second among all African countries (Bouillon, 1994). Thus the first significant movements of traders, business people and goods between South Africa and these countries date back to the 1980's.
The recent growth of trade with the region and the rest of Africa has important implications for the development of immigration policy and practices and is reflected not just in formal trade but in the activities of individual informal traders. The paper will first briefly examine the informal sector and the scope of street trading in South Africa. It will then introduce the research project which forms the basis for this paper before presenting the findings of the research and their implications for policy development. The paper will conclude with an examination of the regulatory framework and will make two policy recommendations. Although close to conclusion, the research project is still on-going and so the discussion is based on the preliminary findings.
2. The Informal Sector
2.1 Definitions
Attempts to define the informal sector have proved problematic. The informal sector covers a wide range of economic activities. An ILO report of 1988 suggested that the informal sector is characterised by, activities in the lower-end of small-scale enterprises, with self employment and very limited initial capital being the main characteristics (ILO, 1988)
Other identified characteristics of informal sector activity include, being outside the regulatory framework, low productivity and incomes, instability, employment of family labour or a few workers, and a that it is a route of economic survival rather than a chosen income earning opportunity (ILO, 1988, 1991; de Vletter, 1996; Hirschowitz, 1991). These definitions imply marginality disguising the enormous disparities in the size and income earning potential of such activities as well as their contribution to national economies. And, as others have noted, the sector also attracts entrepreneurs not just survivalists (May and Stavrou, 1989).
2.2 Contributions to national economies
In 1988 the ILO (1988) estimated that informal sector output comprised an average 20% of the total GDP of African countries. In 1994 World Bank (1994) estimates ranged between 20-50%. De Vletter (1996) while recognising the difficulty of accurately estimating its contribution places the contribution of the informal sector to the GNP of Mozambique at around 40%. Whatever the actual contribution in South Africa, it is certainly significant.
The informal sector also constitutes an important part of the labour market in African countries (ILO, 1988, 1991). In 1996, the SAIRR estimated that 16% of South Africa's economically active population is employed in the informal sector (de Vletter, 1996).
Although defined as distinct from the formal sector, recent studies have identified the close relationships that exist between the formal and informal sectors. These include from the sub-contracting of work to the informal sector (Portes and Schauffler, 1993) as well as the use of inputs in informal sector trade and production which have been purchased from the formal sector (Meagher, 1991; Gibbon, 1995).
It would be rash to attempt to identify the size of the informal sector in South Africa, nor is it the focus of this paper. Studies have shown however, that it encompasses a wide range of productive, service and trade activities in both rural and urban areas, in the inner city, peri-urban and suburban communities as well as in informal settlements. Street trading and cross border trade are just one component of these diverse activities.
2.3 Informal cross border trade
Although an ILO definition of the informal sector (1991) refers to the distribution of goods, very little research appears to have examined the role of informal sector actors in cross-border trade. A study of women informal traders in Zimbabwe however, highlights the complex network of informal trade relationships that exist in the region (Brand et al., 1995, see also Gibbon, 1995). The study shows that strong networks exist between Zimbabwe and Zambia, Botswana, Mozambique and South Africa. Interviews conducted for this study also identified established that informal trade networks exist between Mozambique and Swaziland, Tanzania and South Africa, as well as between Angola, Zaire and Namibia (see also de Vletter, 1996).
2.4 Street trading
Although the removal of the Group Areas Act led to a relaxation in the enforcement of regulations relating to street trading the late 1980's, hawking on the streets was highly regulated until 1991 when restrictions were lifted (CASE, 1995). Although it is difficult to identify the size of a shifting and changing trade, a 1994 study of hawking in Johannesburg's CBD counted between 3,167 and 6,893 stalls (the number was affected by weekends and Christmas) (CASE, 1995). A similar study of Mitchell's Plain Town Centre in 1993 counted between 332-557 stalls (Cape Town City Council: 1993). In a rapidly changing and growing trade these figures are already dated and can provide only an indication of the numbers of hawkers in these urban areas.
Little concrete information is available on participation of non-South Africans in street trading. However, of the 1144 respondents in the CASE (1995) study, 14% were non-South Africans. They found that non-South Africans were more likely to be male (60%), and younger than South African traders.
Like all informal sector activity it is difficult to classify street trade and cross border trade. What is the relationship between the man selling 0.80c bags of cheese curls in the playgrounds of South Africa's schools and the man who has 5 fruit and vegetable stalls in Cape Town, none smaller than 10' by 5'? Or between the Mozambican woman crossing the border to buy bread in Komatipoort which she can sell at double the price in Ressano Garcia and the South African crossing with a bakkie load of potatoes to sell to sell in Maputo? Whatever the difficulties, it is worth remembering the wide range of activities and sizes of businesses operating in this sector as well as their contribution to the GNP and labour market in both the formal and informal sectors.
3. The Scope of the Study
The study on which this paper is based has examined the participation of non-South Africans in street trading and cross border trade. Interviews were conducted in Johannesburg and Cape Town. The study focused on men and women working in the handicraft/curio sector of street trading. Although not the focus of the study, South Africans participating in the selling of handicrafts/curios were also interviewed.
A total of 107 non-South Africans (69 in Johannesburg, 38 in Cape Town) and 21 South Africans were interviewed using a questionnaire which asked both open-ended and closed questions. It took approximately one hour to administer. Further interviews were conducted with:
I would like to thank Jean-Pierre Marais and Adrian
Nieuwenhoudt for their able assistance in conducting the
questionnaire based interviews and for their comments on the
research.
4. Research Results
Given the small number of South African respondents, their answers have only been referred to where responses indicate significant differences.
4.1 Demographics
National Origin:
All the persons interviewed came from Africa. It seems that non-Africans do not engage in the handicraft/curio sector. The majority of interviewees came from Zimbabwe and Malawi. Respondents from Cape Town were more likely to have come from central, west and east Africa and were more likely to be refugees than respondents in Johannesburg.
Male Female Total
Zimbabwe 34 6 40
Malawi 23 2 25
Kenya 5 5 10
Zaire 4 3 7
Sudan 6 - 6 (all refugees in CT)
Swaziland 2 1 3
Angola 1 2 3
Zambia 2 - 2
Senegal 2 - 2
Ethiopia 2 - 2 (both refugees in CT)
Not disclosed - 2 2
Individuals from Uganda, Cameroon, Nigeria, Mali and Ghana were also interviewed.
Anecdotal evidence and interviews with key informants suggest that Mozambicans are heavily under represented as they are not significant participants in this sector of street trading. Similarly regional women traders - particularly from Zimbabwe and Malawi also seem to be under represented in this study.
Age:
Only 4 respondents were under twenty. The majority (almost 60%) were aged between 20 and 29 years. Given the small sample of women it is difficult to draw any conclusions about the age of female traders.
Marital status:
The majority of the non-South Africans interviewed were men (80%). Just over 50% of the men interviewed were single, while 14 of the 21 women (66%) were married. Not surprisingly younger men (under 30 yrs) were less likely to be married. Respondents from southern Africa were more likely to be married than men coming from central, east and west Africa.
Of the 54 married respondents only 8 of their spouses lived in South Africa. Of these, 4 were refugees and one was a South African citizen. The majority of married respondents did not want their families to join them in South Africa. Those who were most keen, were those whose families were furthest away.
Children:
Over 50% of male respondents had no children (all under 30 yrs), while only 6 of the women interviewed were childless. Family sizes ranged from 1-9 children.
Dependents:
Respondents were also responsible for supporting other dependents. Less than 24% of respondents had no dependents, And 50% of those without dependents lived in Cape Town (majority refugees). Numbers of dependents ranged from 1-13.
Most dependents were other family members, particularly parents and siblings. A significant number indicated that they were paying for the education of siblings - including university and technical training.
Intent to remain in South Africa:
Over 82% of respondents located their permanent home in their country of origin. Only 5 stated it was, or they would like it to be South Africa. A further 13% were unsure or didn't know.
Although the question proved confusing to some respondents as the time-line was not distinct, traders were asked if they would like to stay and trade in South Africa. Almost 55% expressed an interest in being able to continue to trade in South Africa while a further 30% said that they did not want to pursue business in South Africa on a long term basis.
4.2 Education
Studies of the informal sector tend to suggest (because they are identified as survivalists) that participants tend to be poorly educated. The CASE (1995) study in Johannesburg found that non-South African respondents were more highly educated than South African respondents, 16% of their sample had matric (compared to 9% of South Africans), and only 4% had no education compared to 16% of the South Africans interviewed. However, 59% of the traders (including South Africans) they interviewed had some secondary education and 10% had matric (CASE, 1995).
In this study,
JCE and MCE 13
O'Levels 12
A'Levels 6
University degree 9 (3 with incomplete degrees)
4.3 Participation in informal sector trade
Motivations for entering the informal sector:
Traders were asked why they had entered this business. The responses of those that answered clearly can be categorised as follows:
Survival/income earning opportunity 45 (42%)
Like trade and self employment 32 (29%)
Artist 8 (7%)
Respondents in Cape Town and women traders were more likely to cite income earning or survival as a reason for entering the trade. Traders in Cape Town were more likely to be refugees and more highly qualified, and restricted to trading in South Africa and thus felt they had other options and were less satisfied with the business.
Staying in the informal sector:
Of those who expressed preferences less than 50% were interested in finding other employment in the formal sector. Thus even those who have entered the informal sector for survival seem to find it preferable to formal sector employment. In a study of the informal sector in Mozambique, 60% of respondents were not interested in wage employment (de Vletter, 1996).
Trading in South Africa:
Respondents were asked why they had chosen to come to do business in South Africa. Responses were obviously influenced by their participation in the handicraft/curio trade. Attractions can be categorised as follows:
Tourist industry/market 27%
The strength of the economy 19%
South Africa as a country 17%
The strength of the rand 5%
Refugee 5%
Other/no answer 24%
4.4 Income and expenditure
Income:
Traders were asked to estimate their average monthly or weekly income. The question proved problematic as some counted sales as income and others counted profit. The seasonal and irregular nature of trade also made it difficult to elicit accurate estimates. The question is also sensitive and a number of respondents declined to answer.
Responses varied widely reflecting the different sizes of businesses and participation in cross-border trade,
Expenditure:
Migrants are often seen as a drain on the economy. When they are in South Africa they purchase goods and foods which contributes to the economy and VAT revenues.
Respondents were asked to estimate what proportion of their income was spent on living expenses (rent, food, electricity etc.) when in South Africa. Again estimates ranged widely,
The majority of respondents did not remit the remaining monies to their home countries, but stated that they invested their profits in more stock or in goods to trade across the border. Accumulation of capital (in the form of stock and goods for trade) was a priority for over 85% of traders. New capital was to be used for expansion, or for the development of income earning opportunities in their home country. A Malawian respondent was returning with an ice-cream maker and was ready to establish a business in Blantyre.
Money remitted to home countries, is invested in business opportunities in home countries and left there for the support of families and education of children and siblings. However responses indicated that for most traders (and no doubt those who will survive) reinvestment in their business is a priority.
The reinvestment of profits in goods for trade and stock challenges the notion that moneys are drained from the South African economy. Those who are building enterprises in their home country and educating their children may also lessen the numbers of new migrants to South Africa seeking income earning opportunities.
Employment of South Africans by non-South Africans:
Although the informal sector is characterised as a low income earning activity,
When interviewing, 22 South Africans employed by non-South Africans were identified in Cape Town and 5 were found in Johannesburg.
If 20% of non-South Africans are employing South Africans it raises questions about who is taking and who is providing employment and access to the labour market.
4.5 Cross-border trading activities
The trading activities found in this study only reflect a small slice of the goods which are crossing the border. With the exception of agricultural products and other food items (which are under represented), interviews with key informants indicate that the range of goods taken across the border by these respondents reflect general patterns of informal cross border trade.
Imports:
Of all traders interviewed,
Curios, wood and stone carvings as well as raw stone comprised over 90% of the goods imported. The remaining 10% consisted of wire (to make wire goods); doilies, crochet and baskets; and three respondents said that they brought clothes and leather goods.
The majority of handicrafts/curios sold on South Africa's streets are imported as South Africa does not produce many handicrafts or curios. Informal sector traders bringing curios into South Africa for themselves also sell to South African and other traders. Other sources of curios are wholesalers (or formal sector importers) in Johannesburg and Cape Town. Central and West African curios are brought in by traders, or sent by family members and business partners. The majority are brought in by large scale importers who pay customs duties before sale to traders.
Given the limitations of the handicraft/curio market, it may be useful to identify other goods which could be imported readily (and without disrupting South African producers) to encourage South Africans to participate in this income earning activity.
Exports:
Exports of goods made a significant contribution to the business of regional immigrants,
The majority of those that did not take goods out were refugees, or were new entrants to the sector, and/or low income earners.
The exports of informal sector traders cover a wide range of goods. Respondents were asked what kinds of goods they took out of South Africa to sell. Their responses have been divided into categories,
Clothes 28
Electronic equipment 15 (e.g. TV's, videos, hi-fi's)
Appliances 12 (e.g. fridges, washing machines)
Shoes 12
Household goods 7 (blankets, pots, irons, etc.)
Cosmetics and lotions 7
Car parts 7
Cars 5
Groceries/food stuffs 5
Bicycles 2
Stationary 2
The export of electronics, appliances, clothes, shoes, household goods, groceries/food stuffs are important for the South African manufacturing sector. Davies (1997) notes that the SADC is an important market for those sectors of manufacturing that are being prioritised by industrial policy.
He identifies these as machinery and appliances, vehicles, chemical products, plastic and rubber products, foodstuffs and textiles and clothing. Informal sector cross border trade therefore reflects formal sector patterns of trade.
The investment of profits by non-South African traders in goods which are likely to be produced in South Africa reflects not only the interaction between the formal and informal sectors, but also indicates that informal sector cross border trade may have a positive impact (even if small) on formal sector employment in South Africa.
This trade also makes a small contribution to VAT revenue as purchases of these goods usually include VAT.
Value of goods exported:
Cross border traders were asked to estimate the value of goods they took out of the country. Estimates of the value of goods exported ranged from R500-R10,000.
under R 500 10%
1,000 9%
1,500 4%
2,000 21%
3,000 17%
4,000 9%
5,000 9%
6,000 4%
8,000 9%
under 10,000 6%
Income earning activities by non-South Africans in South Africa are often seen as a drain on resources, yet the information gleaned in this study indicates that the majority of profits are continually recycled into the South African (formal) manufacturing sector as goods are purchased for export and profits are reinvested on the return of the trader to South Africa.
The importance of cross-border trade to the participants in this study as well as the value and range of goods that they sell outside South Africa indicates, that although the economies of neighbouring (and other) states may be poorer than South Africa's, these countries can provide a market for South African goods and informal cross border traders. Six of the South African interviewees had ventured across the border to buy their own curios and handicrafts, but only 3 said that they took goods to sell as well.
Importance of cross border trade to business:
Over 80% of participants in cross border trade said that it was important to their business, while only 12% said that it was not.
Frequency of movement:
It was difficult to define patterns of movement across the border as they varied considerably between individuals - ranging from once a year to once a month. The majority returned more than 8 times a year while a significant number returned less than 4 times a year. Time spent in the home country varied from 1 week (for regular migrants) to 3 months.
Although these patterns were highly individualised, movement was sufficiently regular to indicate that these traders were living in two countries.
Traders were also asked why they didn't cross the border more often. Responses included,
Patterns of trade within South Africa highlight the mobility of this community. Many moved within South Africa seeking markets. A number of interviewees from Johannesburg were met six weeks later in Cape Town. The most mobile (and often the more successful) will go to Cape Town for Christmas, to Johannesburg for "autumn", home for the winter, returning for the Grahamstown festival, will go to Knysna for the whale season etc.
Customs:
Respondents were asked if they had problems with customs,
4.6 South African participation in informal cross-border trade
From the sample of traders interviewed it is difficult to draw any firm conclusions about the numbers of South Africans involved in informal cross border trade. However,
I am always going to Zimbabwe. This year I went to Malawi for the first time - it was good. Yes, I will go again. I started buying things from people here but now I go outside for things (December, 1996).
Attitudes to non-South African traders:
Some traders associations have been outspoken in their opposition to the participation of non-South Africans in street trading in both Cape Town and Johannesburg. However Council officials in both Cape Town and Johannesburg have remarked that these associations represent only a small percentage of traders (2-4%) and often have their own political agendas. The CASE study found that less than 14% of traders belonged to an association.
South Africans interviewed for this study displayed largely positive attitudes to both immigration and immigrant street traders. Their opinions may have been influenced by their involvement in a sector which has traditionally been dominated by non-South Africans and by their interactions with non-South Africans who supply them with stock.
These attitudes were reflected in the responses of non-South Africans to questions about the attitudes of South Africans to them as immigrants. A small majority said that they had been subject to abuse by South Africans but the overwhelming majority said that their relationships with South African traders were good.
4.7 Illegal activities associated with cross border trade
Illicit goods:
Cross border trade also includes the illicit smuggling of prohibited goods such as guns and drugs. However the vast majority of participants in informal cross border trade rely on legality to survive. Interviews with Immigration and Customs officials at Lebombo confirmed this view. The Controller of Customs said that his officers had yet to find drugs or guns among the goods of traders (interview, Human, March 3, 1997).
Evasion of duties:
Duties may be evaded by a failure to declare as well as by bribery and corruption.
Bribery:
Customs officials - traders are in a marginal position and are therefore more susceptible to pressure from corrupt officials.
Home Affairs - few respondents reported that they had been asked to pay money to Home Affairs or immigration officials. Furthermore, most hold visas which allow them entry.
Police - because of their ambiguous status as traders/visitors, many reported that the police had attempted to elicit bribes.
5. Research conclusions
Like formal cross border trade, informal trade between South Africa and other countries in the region appears to be growing. There are indications that South Africans are increasingly participants in this movement of goods in the region. This growing trade also indicates that although the economies of other countries in the region are not as strong as South Africa's, a market exists for South Africa's manufactured goods.
The patterns of movement of these traders and their attitudes to remaining in South Africa indicate that the majority have no intention to remain permanently in South Africa and should perhaps be considered as mobile business people rather than immigrants.
The participation of informal sector traders in cross border trade (both import and export) suggests that rather than being a drain on the South African economy they make contributions both in their expenditures when in South Africa as well as in the goods they purchase for export.
The investment in human resource development and new enterprises in the home countries of immigrants may discourage future immigration.
5.1 Benefits and costs to South Africa
Benefits:
Traders incomes may reduce future migration to South Africa as they are used to,
Costs:
5.2 Benefits and costs to receiving/sending countries
Benefits:
Costs:
6. The Regulatory Framework
One of identifying characteristics of informal sector activities is that they lie outside the regulatory framework (Hirschowitz, 1993; ILO, 1988). However as others have argued participants in the informal sector encounter a number of statutory bodies and regulations (de Vletter, 1996; Gibbon, 1995). Non-South African informal traders have to negotiate regulations at various levels of government
Immigration regulations:
To enable them to conduct their business informal sector cross border traders need to hold visas to enter South Africa. The scale of their activity and their type of business does not enable them to qualify for either business or work permits. Entering illegally (without visas) and not through entry points is impractical.
The majority of SADC non-South African cross border traders (and street traders) enter under visitors permits. While these allow them to enter they do not formally allow them to trade, even if the issuing officer, and immigration officer at the border knows that they will trade when they arrive in South Africa. This confusion was articulated by one respondent who said,
Why do they issue us with visitors permits when they know we will trade. If they don't want us to sell then they shouldn't let us bring our goods with us. They should just let us bring our handbags.
The duration of permits issued is at the discretion of the issuing officer. Permits are usually for single entry only. An applicant has no way of know if they will get a visa for 2 weeks or 2 months (or longer).
The inability of the present temporary permits to meet the needs of these traders has several implications for both government and traders,
Refugees are also in an ambiguous position. A number of those with asylum or Section 41 permits said that they had been harassed by the police and city council officials who said that their permits did not allow them to trade informally.
Customs:
Persons entering South Africa are allowed a single R500 duty free allowance of personal goods. All other goods are subject to duties which are calculated according to a complex set of regulations. Like visas these duties come with hidden costs to traders and the government,
However, the greatest cost of duties to cross border traders appeared to be that they were a drain on already small profit margins.
Trading permits:
Again the position of immigrant traders in Johannesburg and Cape Town appears to be ambiguous. City Councils appear to be reluctant to do the work of Home Affairs, but their most vociferous constituents place pressure on them not to issue permits to non-South Africans.
A number of non-South African street traders do pay rent and licence fees to the council. Hawkers operating in private markets pay fees to flea markets, but have found themselves excluded from others on the grounds that their visas are not issued for a sufficient period of time.
7. Policy/regulatory outcomes and proposals
It is apparent that non-South Africans form a small but significant proportion of street vendors in South Africa's cities. Examining only a small sector of street trading, handicrafts and curios, this study indicates that informal cross border trade forms an integral part of the regional economy (including South Africa). The regulatory framework appears to obstruct informal cross border trade.
Concluding his paper, Davies (1997) suggested that reform of the regulatory framework so that it would be "more tolerant, and indeed, encouraging of informal cross border trade". As he argues,
It is a trade which cannot be stopped, already provides a livelihood to significant numbers of people from neighbouring countries and potentially to many more...Examining ways to make both immigration and customs regulations more facilitative of informal trade clearly needs urgent attention.
This study has identified both the benefits and costs to South Africa of this trade as well as the limitations of the current regulatory framework. Two policy recommendations have emerged from these findings.
7.1 Visas and conditions of entry for non-South African
traders
The ambiguous visa status of most traders coming from the region has a negative impact in that it,
It is therefore suggested that a new temporary permit category for individual cross border traders be introduced. The visa would allow individual traders with SADC nationality, bringing goods worth less than R15,000, entry to South Africa. The figure of R15,000 would have to be reviewed in consultation with the Departments of Customs and Excise and Trade and Industry. The permit could be extended to citizens of other countries.
The "traders" permit would,
I would also recommend that reciprocal visa arrangements (either bi-lateral or multi-lateral) be negotiated with other SADC countries to enable South African traders similar access to regional markets.
It is worth noting that an "informal" agreement already exists between Home Affairs in Pretoria and Maputo, the Head of Immigration at Lebombo, the Mozambican Representative in Nelspruit, and the police in Ressano Garcia. To reduce the load of immigration officials processing the papers of Mozambican traders entering to buy goods in Nelspruit and Komatipoort the Head of Immigration, on application, asks for report on the individual from the police in Ressano Garcia. Given a favourable response she then attaches a letter of support to an application for a multiple entry visitors visa. In the first instance the visa is issued for 3 months. If the individual does not abuse the visa, extensions are issued for 6 month periods. The Officer said that very few (if any) had abused their visas (interview, Badenhorst, 3 March, 1997).
7.2 Customs and Excise Duties
Customs and excise duties are a heavy cost to these small traders and, as respondents in this study have indicated, act as a brake on the pursuit of trade. These duties make heavy inroads into the small profit margins of these informal sector cross border traders. Unlike their formal sector counterparts, they are not always eligible for reductions in duties under bi-lateral trade agreements as their consignments are too small. Duty free allowances do not cover the needs of these traders.
It is therefore suggested that for those SADC nationals holding a "Trading Visa/Permit" (see above) be exempted from paying duties on goods worth less than R15,000. In other words, Duty Free allowances would be extended for people holding "traders visas". As above, the figure of R15,000 would have to be negotiated with the Departments of Customs and Excise and Trade and Industry. Again this allowance could be extended to nationals of other countries outside the SADC.
These allowances for traders would,
Again it is recommended that a reciprocal arrangements (both bi-lateral and multi-lateral) be negotiated with neighbouring countries to ensure that South African traders are not disadvantaged.
Criteria would have to be carefully examined to ensure that formal sector importers and exporters do not abuse such a visa by employing individuals to bring goods across the border.
7.3 Internal/municipal policies
Regulation of street trading within cities is best dealt with by city and municipal governments. Until a clear policy towards non-South African traders is taken by national government it will be difficult for levels of local government to make clear policy decisions.
8. Conclusion
In conclusion, it seems that informal cross border trade provides a valuable income earning opportunity for both South Africans and non-South Africans from the region. The trade has considerable benefits to the economies of South Africa and the sending countries. At present the situation is difficult to monitor as the issuing of visitors permits to traders creates ambiguity in their legal status and makes it difficult to differentiate between, visitors, traders and those who intend to abuse their visitors visas by seeking work.
The recommendation for a traders visa and the removal of duties would encourage a trade which is beneficial and at the same time would enable the situation to be regulated and controlled. People migrate for many reasons. Temporary permits already recognise some of the reasons for entering South Africa on a temporary basis. The introduction of a traders visa would be a recognition of one more of the reasons that non-South Africans enter South Africa. At the same time, it would recognise a de facto situation while providing a boost to the economies and livelihoods of residents of South Africa and other countries in the region.
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