South Africa's Informal Sector (Including Videos)

This report gives a succinct overview of the South African informal sector. While most developed economies have sophisticated retail and services sectors, countries like South Africa have a hybrid economy where both the formal and informal sector co-exist. This report explores the definition of informality as well as how big the informal sector is and what its growth trajectory is like. In addition, the report explores informal employment, retail, food and finances.

The report closes out with a brief investigation into the black market and its impact on certain industries. Included in the report are four professionally filmed and edited videos that provide a window into the South African informal sector and serve as a companion to the Informal Sector Report. The videos show informal trade and retail. Included is some interview footage from experts explaining how poverty and wealth co-exist in South Africa and how informality integrates into the life of most South Africans.

This report is an overview of South Africa's informal (second) economy. Understanding the informal sector is crucial to any business looking to target the South African consumer. The report will help any team with their understanding of the working of a hybrid economy like South Africa's.

Included in the report are 4 videos to supplement the report with professionally edited content.

(1).Informal Retail (6:15) - In this video, we see a stark contrast between two types of informal retailers. One is a survivalist and the other is more sophisticated (and foreign owned). The video takes you inside the retail spaces and we hear from the shop owners. Among other things, they talk about what customers want.

(2) Informal Trade (4:53) - This video showcases a few informal businesses. Included is a furniture and refurbishing shop, a temporary dwelling builder and scrap collectors. We get a small window into how they earn money.

(3) Masande (1:42) - Masande is 31 and tells us about her trade selling clothes at the side of the road. She gave up looking for formal employment.

(4) Poverty and Informality (2:19) - In this video we hear from some academic experts who describe informality and poverty in South Africa. They give a sense for how the two economies co-exists and how unequal the income distribution is. They provide a small window into South Africa’s economic uniqueness.