The Covid-19 pandemic has caused severe disruption to South Africa’s economy. What will happen to informal firms? Will the informal sector expand or shrink?
According to Stats SA’s Quarter 1 QLFS, there are 2.9m South Africans employed in the informal sector (excluding agriculture), but these data do not indicate how Covid-19 may have impacted informal enterprises.
To learn more about the potential impact of Covid-19 and the lockdown on informal firms, CDE hosted a virtual workshop in June with some of the country’s leading experts, prominent organisers, and service providers in the sector.
In the context of Covid-19, there is now a national-level recognition of the challenges faced by the informal sector. Hopefully, this is a sign of things to come, where this vital part of the economy is no longer ignored or threatened, but included in every part of South Africa’s strategic economic thinking and policymaking.