Consolidated Project Report: Situational Analysis, Survey ... · Study of the Feasibility of Establishing an Informal Trading Centre at Paulpietersburg Consolidated Report - August

Study into the Feasibility of Establishing

A Trading Centre at Paulpietersburg

Consolidated Project Report:

Situational Analysis, Survey Analysis &

Feasibility Model

August 2010

Prepared for:

Report prepared by:

Study of the Feasibility of Establishing an Informal Trading Centre at Paulpietersburg

Consolidated Report - August 2010

- prepared by Graham Muller Associates

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Table of Contents

1. Situational Analysis ................................................................................... 4

Introduction ...................................................................................................................... 4

Project alignment with the eDumbe Local Municipal IDP ................................................ 5

Macro & Micro Orientation .............................................................................................. 6

The Site ........................................................................................................................... 10

Market Area Demarcation .............................................................................................. 12

Target Market for SMMEs............................................................................................... 12

Demographic Analysis ..................................................................................................... 16

Contextual Assessment of Retail Markets in Paulpietersburg ....................................... 18

SMME Business Potential of the Site .............................................................................. 19

Research into Unfulfilled Trading Needs within the Community ................................... 23

Constraints to SMME Business Development and Informal Trading ............................. 25

Additional Issues Identified in the SMME Survey ........................................................... 27

2. Survey Analysis ....................................................................................... 30

Introduction .................................................................................................................... 30

Survey Area and Sample Size .......................................................................................... 30

Breakdown of Earnings of Traders .................................................................................. 33

Vision, development concept and role envisaged for the site based on its strengths

and identified opportunities ........................................................................................... 34

Alignment and Coordination of the Relationship between the First Economy and

the Second Economy in Paulpietersburg and the Impact of the Existing Shopping

Infrastructure on Current and Potential SMME’s and Informal Traders ........................ 36




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Registration and Skills Training for Informal Traders ..................................................... 37

Linkages between the Site and Other Roleplayers based on Interfaces With and

Integration with the Surrounding Community ............................................................... 40

Guidelines for physical design and landscaping strategies for the site(s) that will

enhance amenity and security ........................................................................................ 45

3. Feasibility Model .................................................................................... 47

The Case for an Informal Trading Centre at Paulpietersburg ......................................... 47

Informal Trading Centre Development ........................................................................... 51

Existing informal trading inPaulpietersburg and Dumbe Township ............................... 52

The Vision, Development Concept and Role Envisaged for the Paulpietersburg Site

Based on its Strengths and Identified Opportunities ..................................................... 55

Linkages between the Site and other Roleplayers ......................................................... 56

Development of an Institutional Matrix for the Proposed Informal Trading Centre ..... 57

Infrastructure for Off-Site and On-Site Services and Including Access and Service

Provision and Management ............................................................................................ 62

Project Implementation and time frames ...................................................................... 68

Financial Model ............................................................................................................... 70

Risk Identification, Assessment and Mitigation .............................................................. 71

Project Feasibility and Way Forward .............................................................................. 77

Bibliography .................................................................................................. 80

Appendix A ................................................................................................... 81

Appendix B ................................................................................................... 82




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1. Situational Analysis

Introduction

Paulpietersburg is an established town that predominantly supports the agricultural sector

of eDumbe Municipality and beyond. The retail facilities located in the town itself in

addition to serving the residents of the town and the commercial farmers in the surrounding

district, also provide retail services to the poorer communities in the adjacent Dumbe

township, to inhabitants of Bilanyoni (a lower-income settlement located approximately

14kms from Paulpietersburg) and the people who reside in the deep rural areas in the east

of the municipality such as Klipspruit, Blinkwater and Schaapkraal. Where the formal retail

markets fail with respect to employment provision, competitive pricing and convenience,

informal trading has provided local community members both with a means to earn income

and also to provide the lower-income segment of the market with goods and services in

ways that are cheaper and/or more convenient than when delivered through the formal

sector.

The establishment of a new shopping mall between the ‘old town’ of Paulpietersburg and

Dumbetownship 2kms away will create a potential new hub of activities involving both retail

and public transport (should a taxi rank be established there). In recognition of the

importance of the informal sector in Paulpietersburg and eDumbe Municipality in general,

the KwaZulu-Natal Department of Economic Development and Tourism has commissioned

this feasibility study to best understand the needs and thresholds of the informal sector in

and around Paulpietersburg, with particular emphasis on the proposed location of the new

shopping mall.




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Project alignment with the eDumbe Local Municipal IDP

The eDumbe Municipality Integrated Development Plan (IDP) articulates a number of

development imperatives. This excerpt from the municipal vision expresses the ambition to

promote sustainable economic development and service provision for communities:

“*Part of eDumbe Municipality’s vision is to be+ economically viable and to provide

services to its communities in a sustainable manner”

Source Final Three Year IDP (2009/2010 Review)

In addition to this, eDumbe Municipality’s mission statement clearly advocates and

promotes the rejuvenation of the urban economy through urban renewal programmes, the

support of economic corridors and the facilitation of rural economic development through

promotion of small, micro and medium enterprise (SMME) development and growth.

Local economic development (LED) is highlighted as one of eDumbe Municipality’s five key

performance areas. The IDP outlines a number of key challenges faced in eDumbe

Municipality, notably:

The municipality’s location in an extremely poor part of KwaZulu-Natal;

That the municipality’s significant and large rural population is largely dependent on

the town of Paulpietersburg for access to services and facilities;

That despite the presence of formal retail facilities in Paulpietersburg, there is a

substantial leakage of spending caused by local residents travelling to the towns of

Piet Retief and Vryheid for the purchase of various goods and services. The proposed

mall will provide enhanced retail facilities sufficient to retain a larger portion of that

spending in eDumbe Municipality, and more specifically, in Paulpietersburg;

That 53% of the population of the municipality are women (the majority of existing

traders are also women)




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That the majority of community members use public transport (primarily minibus

taxis) to access retail facilities.

In light of these significant challenges, it is pertinent to note that both the proposed mall

itself and the inclusion of informal trade and SMME facilities in the planning of the proposed

mall will help to address these. The entrenchment of Paulpietersburg as a centre for formal

and informal activities will be enhanced and improved by construction of the mall.

One of the identified economic development strategies of eDumbe Municipality is to

promote sustainable socio-economic development. This feasibility study is aimed at

supporting this strategy.

The proposed mall together with this assessment of the feasibility of associated informal

trade and SMME facilities indicate a strong alignment with the municipality’s goals of local

economic development, sustainable urban renewal, corridor development and support of

SMME’s.

Macro & Micro Orientation

Paulpietersburg is located in eDumbe Municipality in northern KwaZulu-Natal, about 50kms

from Vryheid and in the foothills of the Dumbe Mountain. The town is located on the

Rainbow Route that leads from Mpumalanga to the coast through Piet Retief,

Paulpietersburg, Vryheid, Melmoth, and Eshowe.

eDumbe Municipality currently has a population of 90,726 people of which 11,229 are

employed in the formal and informal sectors. The majority of the employed workers belong

to the large agricultural sector, social and personal services sector and general government

services sectors. The area has a number of tourist attractions, mainly the nine hot and cold

mineral water pools at Natal Spa just outside town, Fort Clergy in Luneburg, the village of




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Luneburg (which is the original settlement of German Lutheran missionaries) and Ithala

Game Reserve, which is close by and easily accessible.

The output generated per sector in the eDumbe Municipal area is illustrated in Figure 1.1,

overleaf.The majority of the output per sector is attributed to the manufacturing,

agriculture, transport and mining sectors. Manufacturing is the highest contributor to gross

domestic product (GDP) in the area, with a contribution of about R 710 million.

Figure 1.1: eDumbe Municipality GDP output by sector for year 2008 (R millions)

Source: Quantec Standardised Regional Database, 2009

0 200 400 600 800

Electricity, gas and water

Finance, insurance, real estate and business services

Community, social and personal services

Construction

General government

Wholesale and retail trade, catering and accommodation

Mining and quarrying

Transport, storage and communication

Agriculture, forestry and fishing

Manufacturing




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Data on employment per sector indicates that the majority of the employed belong to the

agricultural sector followed by the community, social and personal services sector. The

agricultural sector employs about 1,700 people, which accounts for 10% of the total

population in eDumbe Municipality and 20% of the formal employment total working

population.

There are 11,229 people employed in eDumbe Municipality of whom 8,550 are employed in

the formal sector and 2,679 are employed in the informal sector.

Figure 1.2: eDumbe Municipality formal employment per sector for year 2007


0 500 1000 1500 2000

Electricity and water

Transport, storage and communication

Mining and quarrying

Construction

Finance, insurance, real estate and business services

Wholesale and retail trade, catering and accommodation

Manufacturing

General government services

Community, social and personal services

Agriculture, forestry and fishing




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Most of the employed workers in the formal sector are either semi or unskilled labourers.

Highly skilled workers number only about 800 people, which is a very small portion of the

total number of employed persons in the municipality. See Figure 1.3, below.

Figure 1.3: eDumbe Municipality employment by skill level for year 2007


0 2000 4000 6000 8000 10000 12000

Formal and informal employment

Total Informal employment

Total Formal employment

Total Formal Highly skilled employment

Total Formal Skilled employment

Total Formal Semi- and unskilled employment




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The Site

Extent and location

The site identified for the shopping mall development lies approximately half way between

the town of Paulpietersburg and Dumbe township, a distance of only 2kms. Furthermore, it

is located on the western side of the connecting road, at the end of a T-junction intersection

between the R33 provincial road and the D1880 district road that leads eastward to

Bilanyoni, Klipspruit, Blinkwater andSchaapkraal (see map below). The geo-co-ordinates for

the site are 27°24'51.76"S and 30°49'26.79"E.

Site Location Map

DUMBE

PAULPIETERSBURG

THE SITE

TO BILANYONI, KLIPSPRUIT, BLINKWATER AND SCHAAPKRAAL




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Photographs of site

The site itself is undeveloped except for Mondi forestry activities (see below) comprising a

timber plantation. This will be cleared for the shopping centre development.

Site viewed from the east:

Site viewed from the west:




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Market Area Demarcation

The nature of the road network and of the spread of household locations in eDumbe

Municipality means that the entire local municipality should be considered a potential

market for retail at the proposed site. There is only one tarred road from the rural

settlements to the east (the D 1880 district road) where the bulk of the population of

eDumbe Municipality reside, which connects to the main provincial road (R33) through

Paulpietersburg at a T-junction near to Dumbe Township. This is the location of the

proposed centre.

Target Market for SMMEs

Map 1.1 shows a grid representation of the eDumbe Municipality. Each grid is a 2.5km

square within which the number of households in that particular area is indicated.

According to the grid, the total number of households in eDumbe Municipality is 14,986.

Since the entire municipality is considered as potential market for retail, the total number of

households is a sum of all households in each grid. There are a larger number of

households close to major towns within the municipality, for example, 1,614 households in

Dumbetownship, 458 households in Paulpietersburg, 1,449 households in Bilanyoni and

Klipspruit and 1,382 households in Blinkwater and Schaapkraal.

The primary catchment area has been identified as the area in and around the eDumbe and

Paulpietersburg town centres which has a total of 2,289 households. Households in the

primary catchment area will have the greatest impact on the proposed shopping mall

development as they are located in and around the shopping centre site and close to the

proposed location of the informal trading centre. The secondary catchment area is the

larger area surrounding the primary catchment area with a total of 10,795 households.

Households outside the primary and secondary catchment areas are likely to spend

disposable income outside the demarcated area and thus will not have a discernable impact

on the proposed shopping mall development.

The informal trading area will be located between the shopping centre and the taxi rank and

will thus attract the same target market as the existing informal trading area in




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Paulpietersburg. This would include commuters travelling to their homes or to work, long

distance commuters and people looking for specific services offered by other informal

traders such as customers of hair salons, traditional medicine sellers and clothing vendors.




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Figure 1.4: Demographics of primary, secondary and outer catchment areas for year 2009


2289

10795

3933

12204

57553

20969

1511

7125

2596

Primary catchment area Secondary catchment area Outer catchment area

Households Population Employed




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Map 1.1: Grid of number of households within eDumbe Municipality

Source: Eskom Household data

Note: The purple sectors indicate the primary catchment area and the green sectors indicate the secondary catchment area.


Consolidated Report – August 2010


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Demographic Analysis

The demographic data for eDumbe Municipality is summarised in the table below. This data

will provide input for a demand analysis based on an assessment of the lifestyle and

spending patterns of households and their respective members within the catchment area

for the proposed shopping mall development.

Table 1.1: Demographic Analysis of eDumbe Municipality for year 2009

The total current estimated population for the

eDumbe Municipality market area: 90,726

The total number of households within the total

catchment area: 17,017 households

Growth rate in the number of households: 3,1 % per annum

The average number of persons per household: 5.33 persons

The weighted average gross annual income for the

catchment area: R 872,029,846

% of the population within the catchment areas

that are employed: 12.38%

Estimated annual household income of households

in catchment area: R 51,245 per household

All data is calculated using the Quantec Standardised Regional database and the number of

households surveyed by Eskom for the catchment area, as defined above.Demographic data

for each catchment area is outlined in the table overleaf. Households in the primary

catchment area are likely to experience the greatest benefit from the establishment of the

new shopping centre development and associated informal trading facilities.




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Table 1.2: Demographic analysis of catchment areas for year 2009

Catchment area Households Population % of population Gross income Employed

Primary 2,289 12,204 13.45% R 117,298,955 1,511

Secondary 10,795 57,553 63.44% R 553,185,766 7,125

Outer 3,933 20,969 23.11% R 201,545,125 2,596

Total 17,017 90,726 100% R 872,029,846 11,232


Figure 1.5, below, provides an overview of household income in eDumbe Municipality. The

majority of the households in the municipality earn between R9,600 and R38,400 Randsper

annum, while 4,550 households earn less than R9600 Rands per annum, of which R795

households report no income at all. Only 15% (2,378) of the households earn more than

R38,400Rands per annum.

Figure 1.5: Household income in the eDumbe Municipality for year 2007

Source: Quantec Standardised Regional Database 2007

795

1403

2351

40563834

1356

590409

23




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Contextual Assessment of Retail Markets in Paulpietersburg

This section provides an overview of goods and services provided by informal traders. Most

traders currently sell fruits and vegetables with a small proportion selling clothes, shoes,

maize meal, cigarettes, mobile telephone airtime, snack crisps, sweets, cooked food,

medicine and herbs and ice cream.

Fruits and vegetables are either grown by the traders or bought in wholesale. The rest of the

traders sell a variety of products and services which are also sourced on a wholesale basis.

The turnover of most traders is less than a R100 a day, while a minority (26%) earn more

than a R100 a day.

Due to the convenience for traders and customers, most informal traders are located at the

main taxi rank in the centre of town in Paulpietersburg. The taxi rank is the busiest area of

town with the greatest level of footfall. Traders have a constant stream of people either

taking taxis or walking through the rank to go to the nearby Spar Supermarket and other

retail outlets. Most traders expressed the view that this was the best location for their stalls

as there is a lack of similarly busy areas in other parts of town. 44% of the traders choose to

be situated near a taxi rank as it is the busiest area in town.

Informal traders mainly sell fruits and vegetables, other food stuff and other goods. Two

separate stalls offered hair services especially for men. Customers from all over eDumbe

Municipality buy goods from the informal traders. Most customers are from Bilanyone,

Klipspruit, Blinkwater, Schaapkraal, Dumbe Township and Paulpietersburg, while a few

customers from Badeni, Mangusuthu, Johannesburg and Puzani also buy from the traders.

A few traders expressed a preference to be situated outside a supermarket, in central town

and near pension points, while a minority would prefer to be located outside a bank.




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The taxi rank currently only has 10 stalls for informal traders; however, more than a 100

traders sell their wares in and around the rank by constructing make-shift stalls.

Infrastructure provision within the informal trade area is extremely poor and the area is

neither properly cleaned nor is there access to water, electricity or sanitation. Demand for

informal trading has resulted in a large number of traders setting up on the pavement,

alongside queue areas and outside formal shops.

SMME Business Potential of the Site

In this section, the total market size for the various retail categories is calculated. The

demand analysis serves to analyse the total demand for goods and services in a region and

thus give potential investors an idea of the total market available to them by product in the

region.

There are 17,017 households in the market area. Below is a table outlining the final

consumption expenditure by households in the local municipality per year from 1995 to

2007. The average spend has been steadily increasing over the years.

Table 1.3 overleaf shows the amount of money available to be spent, on average, by

households on consumer goods within the Paulpietersburg area, assuming that the

households within the Paulpietersburg area share the same pattern of spending as the rest

of the district.




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Table 1.3: Final Consumption by households per year

Final Consumption expenditure by

households per year - Rands

1995 R 18,690

1996 R 20,555

1997 R 22,086

1998 R 22,929

1999 R 24,085

2000 R 26,259

2001 R 27,918

2002 R 31,094

2003 R 33,362

2004 R 36,593

2005 R 40,646

2006 R 45,287

2007 R 51,245

Source: Quantec Standardised Regional Database (current prices), 2009

Table 1.4: Total spending on Durable goods per household per annum for year 2007

Durable goods : Total Spend pa - Rands R 5,396

Furniture, household appliances, etc R 1,475

Personal transport equipment R 2,805

Recreational and entertainment goods R 604

Other durable goods R 512


Total spending on durable goods per annum per household was R 5,396. More than half of

this spending was on personal transport equipment and a substantial portion was spent on

furniture and household appliances. Recreational and entertainment goods and other

durable goods only accounted for 20% (R 604) of the total spending on durable goods.




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Table 1.5: Total spending on Semi - Durable goods per household per annum for year 2007

Semi-Durable goods: Total Spend pa - Rands R 6,342

Clothing and footwear R 3,807

Household textiles, furnishings, glassware, etc R 1,085

Motor car tyres, parts and accessories R 942


Miscellaneous goods R 132


The above table outlines the total spending on semi-durable goods per household in the

area. Households spent 12% of their total income on semi-durable goods. Households spent

about 60% (R 3,807) of this income on clothing and footwear, 17% (R 1,085) on household

textiles, furnishings, glassware, etc., 15% (R 942) on motor car tyres, parts and accessories

and the remaining of their income on recreational goods and miscellaneous goods.

Spending on non-durable goods accounted for the largest portion of household incomes

(41%) with a large amount of income spent on food, beverage and tobacco products. This

large amount would typically be spent either in small spaza shops or the larger retail outlets

such as the Spar Supermarket, which is located close to the taxi rank in Paulpietersburg.

Table 1.6: Total spending on Non Durable goods per household per annum for year 2007

Non Durable goods : Total Spend per annum - Rands R 20,973

Food, beverages and tobacco R 13,627

Household fuel and power R 2,249

Household consumer goods R 2,140

Medical and pharmaceutical products R 508

Petroleum products R 2,056






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Table 1.7: Total spending on services per household per annum for year 2007

Services : Total Spend per annum - Rands R 18,533

Rent R 3,423

Household services, including domestic servants R 1,191

Medical services R 2,980

Transport and communication services R 4,323

Recreational, entertainment and educational services R 2,538

Miscellaneous services R 4,078


A large proportion of total income spent by the average household in the catchment area is

attributed to spend on services (36%). Transport and miscellaneous services account for the

largest proportion spent on services, while household services such as domestic servants

accounts for a small proportion.

An overall review of the total amount spent by households per goods and service category is

listed below:

Table 1.8: Market Demand Analysis for year 2007

Market Demand analysis Rands per

household

No. of

Households

Potential Market Spend

per annum- Rands

Durable Goods R 5,396 17,017 R 91,825,368

Semi - Durable goods R 6,342 17,017 R 107,926,518

Non Durable goods R 20,973 17,017 R 356,894,011

Services R 18,533 17,017 R 315,383,949





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The above table indicates that there exists a large potential market spend in the area. The

informal sector currently employs about 100 people. The new shopping centre is located

some distance away from the existing informal sector market and this will result in reduced

spend at informal trading stalls, risking causing about 100 people to lose their means of

livelihood. In order to maximise the benefit of the new shopping centre, it will be important

to provide for informal and formal trade areas in close proximity at the new development

site thus maximising synergy between both sectors. Most of the current income in the area

is spent in the formal trade centres and there exists very little integration between the

informal and formal sectors. The new development provides the opportunity to address this

deficiency. Also there are minimal facilities in the Paulpietersburg central business district

for the accommodation of SMME businesses such as mobile phone shops, tailors, second

hand clothing retailers, hairdressers, music and video retailers, appliance repair shops, hair

and beauty product outlets, carpenters and cooked food outlets. This is a serious deficiency

and needs to be addressed in the new development.

Research into Unfulfilled Trading Needs within the Community

A new shopping centre in the proposed site would be an obvious location for a new taxi

rank – long haul / short haul changeover would be perfectly placed (this is a critical

consideration and buy-in from the taxi owners is essential). The proposed shopping centre

site would provide the perfect place for a large, properly-serviced informal trading market

and SMME centre which supports both the fruit and vegetable sellers and provides a

platform for other entrepreneurs to expand their operations.

Due to the lack of electricity, limited access to water and lack of effective shelters, informal

traders have very few options in terms of tradable goods and services. If given the above

resources, traders would be able to provide services such as hot meals, tailoring and other

electricity dependant services that are currently missing at the informal trading centre.




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Our initial assessment would suggest that the following services would operate successfully

if located strategically between the taxi rank and the shopping complex at the development

site:

Mobile phone centres,

Small fresh produce outlets,

Hairdressers,

Cooked food vendors,

Meat vendors,

Tailors,

Clothes and shoes stalls,

Hair and beauty products for women (cosmetics, perfume, hair weaves),

Films and Music (DVDs, CDs), and

Toys.




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Constraints to SMME Business Development and Informal

Trading

In the project team’s survey of small businesses (SMMEs) it was found that these

entrepreneurs are often faced with greater challenges than larger businesses. These

challenges include access to markets, access to financing, skills and managerial expertise,

technology and adequate business infrastructure. These constraints are particularly

experienced in rural areas especially by women who struggle to support their families by

carrying out SMME activities and informal trade at small trading centres.

SMMEs struggle to succeed in small rural towns due to a lack of resources such as training

for management, skills workshops, access to technology and a major constraint is the lack of

finance to expand, set up or even just sustain a business. Most informal traders make less

than R200 a day and after factoring in costs such as stock and transport, traders are left with

no surplus funds to re-invest in their businesses. SMMEs and informal traders also lack

appropriate, relevant and important information and advice that assist them to operate a

successful and sustainable business. Without necessary funding, SMMEs are unable to

market their products aggressively thus hindering their success in introducing their products

to new markets. A major constraint to development of SMMEs is the lack of infrastructure

such as clean water, sanitation and electricity. This limits the number of services one can

provide resulting in over 20 traders selling homogenous products and offering similar

services.

Constraints faced by SMMEs include:

Transport infrastructure needs to be improved or developed

Lack of electricity

Upgrade of sewerage system is required




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Need for skilled workers

Limited funding and financial problems

Poor marketing

Easy availability of cheap imports (clothing and textiles)

Instability of petrol prices

Price increases due to economic conditions (inflation, interest rates, petrol prices)

Constraints faced by informal traders include:

Poor infrastructure such as transport, storage facilities, water, electricity, sanitation

and security

Lack of proper facilities to operate from

Lack of skills in order to diversify services offered

Lack of schooling sometimes resulting in illiteracy

Lack of finances or access to funding

High competition amongst traders as all trading similar or same products

Absenteeism as majority of the traders collect pension and other grants thus have to

remain closed during payout days

Rising prices

Low incomes

Insufficient funds to invest or expand in business

Lack of alternative trading facilities which offer better opportunities




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Additional Issues Identified in the SMME Survey

1. The status, needs and problems faced by SMME and informal sectors of the

economy in the study area

Currently there is a fairly significant informal economy in the study area and some

SMME activity, however these sectors do not fully achieve the potential of alleviating

poverty. Very little informal trading and SMME activity exists apart from that linked

to the taxi rank in the Paulpietersburg central business district (CBD).

Dumbetownship has copy shops, second hand clothing dealers and phone services.

By providing informal trading areas and SMME shops alongside a large retailer a

larger base of informal traders can be encouraged and will become more sustainable

and successful.

2. The vision, development concept and role envisaged for the site based on its

strengths and identified opportunities

Critical to the success of the a new shopping centre at theT-junction intersection

between the R33 provincial road and the D 1880 district road that leads eastward to

Bilanyoni, Klipspruit, Blinkwater and Schaapkraalis the need to attract a number of

compatible retailers who will draw customers to shop there in substantial and

sustainable numbers as an alternative to shopping at the Paulpietersburg central

business district, Piet Retief or Vryheid. The survey and interview feedback suggests

a supermarket similar to a large Spar such as exists in the Paulpietersburg central

business district is required. Spar’s existing presence in the municipality means that

this retailer has the distribution infrastructure in place to supply goods at the low

prices required to attract buyers. Clothing stores would be needed as well as a

building supplies store.




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The project team interviewed the manager of the Spar in the Paulpietersburg central

business district and his view is that Spar would take up space at the proposed new

shopping centre and would in all likelihood downgrade the existing Spar

supermarket in the Paulpietersburg central business districtto a smaller convenience

store.

The footfall this would create at the new site would support extensive SMME and

informal trade development. SMMEs interviewed raised the issue of the availability

of fuel service and banking facilities at the new site. These elements should be

considered crucial to a successful shopping centre mix as they will be vital attractions

drawing taxis and customers to the area. Taxi operators and businesses in the

nearby industrial area would also benefit from a fuel service station development.

3. Linkages between the site and other role players based on interfaces with and

integration with surrounding community

As the proposed shopping centre development is within easy walking distance of

Dumbetownship and the industrial area development at the proposed site will

reduce consumer spending on transport for shopping trips thereby increasing

spending power elsewhere in the local economy. The proposed site for the

shopping centre development is well positioned in that it is close to a variety of

roads that run through the area making general accessibility good.

4. Infrastructure for off-site and on-site services and including access and service

provision and management.

The assessment of the infrastructure required for proposed development is largely

positive. Phase 3 Electricity power cables run through the site and this is a




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bigadvantage. The area is serviced by the municipal water supply. Road access is

excellent due to its location alongside the tarred R33 provincial road, which is in

excellent condition. Other services such as refuse and sewerage will also be provided

by the municipality.

5. Guidelines for physical design and landscaping strategies for the site that will

enhance amenity and security

The site slopes away to the west from an initial section level with the R33 provincial

road and this will provide some challenges in site preparation. This may also cause

some drainage challenges, but nothing that is insurmountable. The site will need to

accommodate around 100 informal traders and 10 SMME shops as well as a taxi rank

for up to 20 taxis in addition to the formal shopping centre development.




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2. Survey Analysis

Introduction

In order to investigate and understand the nature of informal trade and SMMEs in

Paulpietersburg, Graham Muller Associates (GMA) undertook a series of surveys at the local

taxi rank and its surrounds where traders sold their wares and also in Dumbe township

where a fewer number of informal traders and SMMEs plied their trade. The main survey

was conducted on the 11th of November 2009 and consisted of a 2 page questionnaire used

to determine:

The types of goods sold,

Daily turnover,

Choice of location,

Improvements required, and

Other issues / suggestions.

The objective of the surveys is to understand the needs and thresholds of the informal

sector and SMME sector in and around Paulpietersburg.

Survey Area and Sample Size

Informal traders belong to a community of 17,017 households. The survey was conducted

primarily in and around the taxi rank in the central business district of Paulpietersburg

where most informal traders are located.




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Additionally informal traders and SMMEs near the clinic in Dumbe Township and in other

areas of Dumbetownship were surveyed. Facilities such as concrete tables for up to 10

traders currently exist both at the taxi rank in the central business district of Paulpietersburg

and near the clinic in Dumbe township (where there are also lock up facilities for SMMEs),

however the majority of the traders set up on individually supplied tables, crates or boxes

along the pavements in the area. Informal trade is the only source of income for around

100 traders in and around Paulpietersburg and provides a convenient and affordable option

for many residents who choose to shop at the informal trading stalls. Interviews were

conducted with a range of people, most of who were over the age of 18. Most interviews

were conducted with the help of a Zulu interpreter. A total of 133 traders were

interviewed in and around Paulpietersburg (List of traders provided in Appendix B).

Not surprisingly the project team found that the informal traders wish to be located in an

area that is conveniently located and busy and that will prove profitable to their business.

Table 2.1: Breakdown of products sold

Products Percentage traders selling the good

Fruit and vegetables 66%

Chips 14%

Other 13%

Telephone and airtime 8%

Clothes 7%

Cigarettes 5%

Sweets 5%

Cooked food 4%

Shoes 4%

Malt 3%

Hair services 3%

Maize Meal 3%




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Products Percentage traders selling the good

Medicine and herbs 3%

Ice cream 2%

More than half of the traders sell fruit and vegetables (66%) while a small portion of traders

sell other items such as mobile telephone airtime, cooked food, malt, maize meal and

clothes. A breakdown of the products sold is shown in Table 2.1, below. 89% of the traders

expressed a desire to additional products in addition to those they are currently selling.

47% of all products sold at the informal traders market comprise fruit and vegetables, while

snack crisps, telephone airtime and clothes comprise 10%, 6% and 5% of sales turnover

respectively.

Figure 2.1: Products sold

47%

10%

9%

6%

5%

4%

4%

3%

3%

2%2%

2%

2%1%

Fruit and vegetables

Chips

Other

Telephone and airtime

Clothes

Cigarettes

Sweets

Cooked food

Shoes

Malt

Hair services

Maize Meal

Medicine and herbs

Ice cream




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Breakdown of Earnings of Traders

More than half the traders made a daily turnover of under R100 while 26% indicated a

turnover of over R100. Many traders indicated that turnover varied according to the time of

the month with many customers spending more money towards the end of the month or

after pension payments, while the rest of the month saw little trade take place.

Table 2.2: Breakdown of daily turnover earned by traders

Daily turnover bracket (in Rands) Percentage of traders earning

within the respective bracket

0 – 50 28%

51 – 100 41%

101 – 150 14%

151 – 200 3%

200 + 9%

Figure 2.2: Traders earning within the following brackets

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

0 – 50 51 – 100 101 – 150 151 – 200 200 +

Daily turnover (R)




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Assessment of the study results concludes that a thriving informal trade exists in the centre

of Paulpietersburg with more than a 100 traders active within and surrounding the central

taxi rank in Paulpietersburg. The taxi rank has designated stands for 10 traders. Demand for

informal trading area has seen trading activities spill over onto the surrounding pavements,

queue areas and outside formal shops in the vicinity. Infrastructure provision within the

informal trade area is extremely poor. The area is not properly cleaned, there is little access

to water, no access to electricity and there are no effective shelters to cater for inclement

weather conditions.

While conducting surveys, it was apparent that traders are unhappy with the conditions of

facilities but traded at the taxi rank as there was no other viable option for selling their

goods. Lack of shelter, chairs, tables and storage means that traders transport their goods,

chairs, umbrellas, etc. every morning using public transport and back again at the end of the

day. Most traders felt that the taxi rank was not busy enough and would prefer to be in a

location where there are a lot more people and proper facilities.

Vision, development concept and role envisaged for the site

based on its strengths and identified opportunities

A new shopping centre in the proposed site would be an obvious location for a new taxi

rank – long haul / short haul changeover would be perfectly placed (this is a critical

consideration and buy-in from the taxi owners is essential). The proposed shopping centre

site would provide the perfect place for a large, properly-serviced informal trading market

and SMME centre which supports both the fruit and vegetable sellers and provides a

platform for other entrepreneurs to expand their operations.




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Due to the lack of electricity, limited access to water and lack of effective shelters, informal

traders have very few options in terms of tradable goods and services. If given the above

resources, traders would be able to provide services such as hot meals, tailoring and other

electricity dependant services that are currently missing at the informal trading centre.

Our initial assessment would suggest that the following services would operate successfully

if located strategically between the taxi rank and the shopping complex at the development

site:

Appliance repairers

Mobile phone centres,

Small fresh produce outlets,

Hairdressers,

Cooked food vendors,

Meat vendors,

Clothes and shoes stalls,

Sellers of hair and beauty products for women (cosmetics, perfume, hair weaves),

Films and Music (DVDs, CDs), and

Toys.

It is the recommendation of the project team that an informal trading area with 100 stalls

and 10 formal shops should be planned at the proposed development site to account for

existing informal trade in Paulpietersburg that is likely to move to the new site. See

Feasibility model for further discussions of this.




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Alignment and Coordination of the Relationship between the

First Economy and the Second Economy in Paulpietersburg and

the Impact of the Existing Shopping Infrastructure on Current

and Potential SMME’s and Informal Traders

Informal traders are heavily reliant on the footfall of shoppers resulting from the proximity

of the taxi rank and of people who also work in Paulpietersburg shopping in

Paulpietersburg. A new shopping centre in the proposed site would be an obvious location

for a new taxi rank – long haul / short haul changeover would be perfectly placed (this is a

critical consideration and buy-in from the taxi owners is essential).

The proposed shopping centre site would provide the perfect place for a large, properly-

serviced informal trading market and SMME centre which supports both the existing

informal traders and provides a platform for other SMME entrepreneurs to expand their

operations should they find the opportunity. The existing shopping infrastructure at

Paulpietersburg is inadequate to meet the needs of the large population of eDumbe and

currently people shop outside the municipality (at Piet Retief or Vryheid) for many of their

needs. The proposed shopping centre will have more than 20 000 square metres of

shopping space and will cater much more adequately for the needs of the population of

eDumbe Municipality. This would include:

Super Spar - currently Paulpietersburg has a small Spar

Banks – it was observed during the survey phase that banking options are extremely

limited in Paulpietersburg and a hindrance to both formal and informal trade growth

A building supplies outlet

Fast food outlets




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Clothing stores

Furniture stores

Cellular phone outlets

These shops would provide Paulpietersburg with the critical mass attraction to bring a large

number of shoppers to the mall and by placing the taxi rank and informal trade area

alongside the mall it would allow informal traders access to a much larger potential market.

Registration and Skills Training for Informal Traders

Registration of all informal traders and the sustained paymentof rentalsis pertinent. This

action gives permission to operate, and provides access to servicesand support. Simplifying

existing registration procedures and moving towards theone-stop centre concept can

reduce costs. Data on registration can be kept in a centralised inter-departmental

information system, which will link where traders are,the sectors they work in, with

registration, rent-paying status, environmental healthand the enforcement function.

Economic growth in the informal trading sector will need to be facilitated through:

Linking the development and growth of trading areas to commercial zones in order

to create viable hubs of business activity that mutually benefit formal and informal

businesses.

Providing a range of facilities, capacity building and business support services that

cater for the different levels of traders, from the weekly Saturday trader and small

survivalist trader to larger traders.

Ensuring that the buildings and property owned by the municipality are used for

themaximum social and economic development of the community within which

theyare located.




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Targeting highly accessible and visible locations for the promotion of

touristrelatedtrading in order to derive benefit for informal traders from the

tourismpotential.

Currently no partnerships exist to promote skills training for informal traders; however such

partnerships are key for the sustainability of informal traders and SMMEs in

Paulpietersburg. In most cases, SMMEs and informal traders are unable to expand or

succeed mainly due to a lack of skills and proper business knowledge. Proprietors lack

formal training on how to run a business effectively and efficiently. The best approach to

tackle these issues would be to set up local partnerships with businesses and training

institutions who are willing to fund programmes and teach the basic skills to traders who

will qualify even with no formal experience. Such partnerships currently exist in Alexandra

and the city of Cape Town, where traders receive NQF certificates accredited by the relevant

SETA in which they operate e.g. Food and Beverage SETA.

Generic business services can assist less sophisticated businesses to run more efficiently and

to mature (i.e. grow in size, revenue and sophistication). These mayinclude:

Business literacy skills and training development;

Provision of advice, information and business counselling;

Provision of management or appropriate technical training, including financial

management;

Provision of marketing and market development services.

External sources can provide sector support and play a number of creative roles in providing

for example:

Economically trained sector specialists for those sectors where large numbers of

traders operate or where growth prospects are more positive.

Training in general business skills

Health education with regard to the handling of food for sale.

Legal advice about small business development

Subsidisation of selected training providers




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Co-operation with formal business.

Facilitation of access to financial services.

Informal traders and SMMEs are a large contributor to the economic wellbeing in the

municipality and it is necessary to sustain small businesses and traders for further

development in the municipality. Registration and skills training can be supported by the

local municipality while informal traders pay a nominal monthly fee of R10 per stall. This

amount is based on discussions with the Informal Traders Association who agreed that they

would continue paying the R10 fee currently charged to them.




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Linkages between the Site and Other Roleplayers based on

Interfaces With and Integration with the Surrounding

Community

Customers at the informal trading stalls in the Paulpietersburg central business district

typically travel from Bilonyone, Klipspruit, Blinkwater and Schaapkraalas well as from

eDumbetownship and from within Paulpietersburg itself. Instances of shoppers from far

afield as Johannesburg and Puzani were also noted by the surveyors. The majority of

shoppers come from Bilanyone, Klipspruit, Blinkwater, Schaapkraal, Dumbe and from within

Paulpietersburg.

Table 2.3: Areas where customers live

Area % of traders supplying to customers from

respective region

Bilonyone,Klipspruit, Blinkwater, Schaapkraal 83%

Dumbe 70%

Paulpietersburg 48%

Badeni 10%

Mangusuthu 4%

Johannesburg 2%

Puzani 1%




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Figure 2.3: Areas where customers live

34% of the traders chose their current location due to its proximity to the taxi rank. (This

may be severely understated as many of the responses which were ‘Lots of customers’

could be based on the presence of the taxi rank).

Table 2.4: Reason for choosing current location

Reason for choosing current location No. of traders choosing location

Taxi rank 43

Customer base 5

No other options 9

Lots of customers 44

Local Customer support 4

Convenience 9

Supermarket 14

83%

70%

48%

10%

4%2% 1%

Bilonyone eDumbe PPB Badeni Mangusuthu Johannesburg Puzani




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Figure 2.4: Reason for choosing current location

18% of the traders compete with local supermarkets and 82% of the traders compete with

other traders. Most traders sell identical goods and so prices tend to be the same.

Customers rather choose to buy from traders they have a personal relationship with.

79% of the traders expressed a desire to relocate to a different location, 43% of which

wanted to move to the proposed new development at the new site near Dumbetownship as

they believe that new taxi rank will be busier than the current taxi rank due to its proposed

central location between eDumbe and Paulpietersburg town and at the

intersectionbetween the R33 provincial road and the D1880 district road that leads

eastward to Bilanyoni, Klipspruit, Blinkwater and Schaapkraal.

34%

4%

7%

34%

3%

7%

11%

Taxi rank

Customer base

No other options

Lots of customers

Local Customer support

Convenience

Supermarket




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Figure 2.5: Major competitors

Table 2.5: Factors upon which sales depend

Factor Percentage of traders whose business depends on respective factor

Taxi Rank 88%

Supermarket 79%

Town 77%

Pension Point 52%

Bank 46%

88% of traders prefer to be located near a taxi rank, 79% near a supermarket while 52%

prefer a pension point which occurs monthly.

Supermarket18%

Other traders82%




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Figure 2.6: Factors upon which sales depend on

88%

79%77%

52%

46%

Taxi Rank Supermarket Town Pension Point Bank




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Guidelines for physical design and landscaping strategies for

the site(s) that will enhance amenity and security

Facilities at the taxi rank are minimal and most traders improvise using crates or boxes as

tables to set up their goods. There are currently about 10 concrete trade tables, but there

are no storage facilities. Traders have no chairs, shelter, sanitation and cleaning services.

Lack of electricity limits the goods that traders can sell as they are unable to operate fridges

or machines.

Table 2.6: Breakdown of traders’ desire for better facilities

Facility

% of traders who desire the respective facility

Shelter 84%

Tables 69%

Chairs 68%

Storage 41%

Electricity 41%

Water 25%

Toilets 25%

More space 22%




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Figure 2.7: Percentage of traders who desire the following facilities

Only 8% of traders had been offered other facilities at another location but chose to sell their goods at the taxi rank due to the foot traffic.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Shelter

Tables

Chairs

Storage

Electricity

Water

Toilets

More space

Other




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3. Feasibility Model

The Case for an Informal Trading Centre at Paulpietersburg

The assessment by the study team of informal trade in the Paulpietersburg area is discussed

in detail in two previous reports (the Situational Analysis Report and Survey Results Report)

reveals the size and growth potential of the retail sector and of and the informal trading

sub-sector in eDumbe Local Municipality. This analysis was applied to the specific site to

test the case for the development of an informal trading centre and taxi rank adjacent to a

proposed planned large formal retail shopping centre ay the T-junction of the R33 provincial

road to Piet Retief and the D1880 district road east to Bilanyoni, Klipspruit, Blinkwater and

Schaapkraal.

The conclusion of the situational analysis and survey analysis is that a large population

(nearly 100,000 persons) will shop for a significant proportion of their regular monthly

purchases at a retail shopping centre at the proposed site. Planning of this development is

underway and whilst there is still some uncertainty over the tenant-mix and size of the

centre, there is little doubt regarding the potential success of the proposed development.

The survey of informal traders and SMMEs by the study team revealed the reasons why

traders presently locate at the taxi rank in the Paulpietersburg central business district. This

is because this area enjoys a high footfall of commuters and travellers either boarding or

disembarking from taxis or changing taxis. The location of the taxi rank close to established

formal retail outlets and sources of employment and the changeover of passengers between

long haul and short haul taxis was key to this. 34% of the traders chose their current

location due to its proximity to the taxi rank. (This may be severely understated as many of

the responses – 34% which were ‘Lots of customers’ could be based on the presence of the

taxi rank).




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The new retail centre at the proposed site is also predicted to attract a large number of

people, commuters and taxis. It is also likely that, provided appropriate facilities are

provided, long haul taxis will use the centre as a terminus, as it is located close to Dumbe

township approximately half way between the town of Paulpietersburg and to the entrance

to Dumbe township, a distance of only 2kms. 79% of the traders expressed a desire to

relocate to a different location, 43% of which wanted to move to the proposed new

development at the new site near Dumbe township as they believe that new taxi rank will

be busier than the current taxi rank due to its proposed central location between eDumbe

and Paulpietersburg town and at the intersection between the R33 provincial road and the

D1880 district road that leads eastward to Bilanyoni, Klipspruit, Blinkwater and Schaapkraal.

Furthermore, it is located on the western side of the connecting road, at a T-junction

intersection between the R33 provincial road and the D1880 district road that leads

eastward towards Bilanyoni, a cluster of rural settlements with limited retail and social

facilities, but that is home to 2,831 households in Bilanyoni, Klipspruit, Blinkwater and

Schaapkraal. The geo-co-ordinates for the site are 27°24'51.76"S and 30°49'26.79"E.

It is the recommendation of the project team that an informal trading area with 100 stalls

and 10 formal shops should be planned at the proposed development site to account for

existing informal trade in Paulpietersburg that is likely to move to the new site. 100 stalls

would be able to accommodate the traders who are willing to move to this new location

currently trading at the taxi rank as well as new traders looking to set up in the area. Traders

may also be attracted to the new location as most traders interviewed expressed a desire

for better facilities with proper shelter, chairs, tables, storage, water and electricity. 10

formal shops will provide an opportunity to traders willing to expand their business as they

are currently limited to trade in small stalls.




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A key question is what will the effect of this new centre be on the more than 150 informal

economy traders currently operating in Paulpietersburg and Dumbetownship?

In the case of the informal traders operating in the Paulpietersburg town centre, there is

some concern that the development of a shopping centre will crowd out (or eliminate) an

already established informal economy. Current experience in and around the taxi rank in

the town centre suggests this fear is unwarranted. The more likely case in this situation is

that the development of a new shopping centre will draw informal economic activity to

locations near to it.

The sustainability of informal trade does, however, depend on the specific situation in

Paulpietersburg. For example, if informal traders are selling products that are not available

at the shopping centre, crowding out is not likely to occur. However, if the formal retailer is

able to offer more convenient hours or credit services, this could draw consumer spending

away from the informal sector (Altman, 2008: 10).

In South Africa, employment in the informal sector appears to have grown by 1.1 million

jobs between 1997 and 2005 (Altman, 2008: 14). However, this could be a result of the

improvements in data collecting and statistics, as well as an increase in global integration,

which has stimulated a growth in informal employment (Valodia, 2006: 7).

What is also unclear is whether the growth in the informal sector is from growth in the

wider economy (positive growth in the formal sector correlated with positive growth in the

informal sector), or a survival strategy as the number of unemployed people rises (a collapse

of the formal economy, or a highly regulated environment induce firms to operate in the

informal sector, both of which lead to falling employment in the formal sector).

Valodia (2006: 7) argues that informal employment in South Africa “tends not to be

voluntary” (in other words, it is not as a result of regulations and high tax rates), but rather

is a survival strategy for the unemployed. According to Valodia (2006: 7) “growth in the




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formal sector will (then) lead to higher levels of labour migration from the informal sector to

the formal sector”.

It is unclear whether this will be the case in Paulpietersburg, as the outcome depends on the

specific reasons why people in Paulpietersburg are engaged in informal economic activity.

However, whether the informal sector in Paulpietersburg has developed due to an increase

in formal economic activity or a decrease in informal economic activity, it can be expected

that the proposed shopping centre will attract informal trading activity to the site of the

centre. Indeed, even in more developed economies, the growth of formal economic activity

never completely supplants informal economic activity (Altman, 2008: 9).

The evidence in South Africa and in Paulpietersburg specifically, is that most informal

traders are survivalists, and so the new development should support growth in the informal

sector so as to bring about a net increase in employment based on informal trading

activities in the area surrounding the new development once the new shopping centre is

open for trade.

The development of the shopping centre should be seen as an opportunity to encourage

growth in the informal sector and support the local economic development objectives of

both eDumbe Local Municipality and the KwaZulu-Natal Department of Economic

Development and Tourism.

The role of the developer of the trading centre is one of a private profit seeking enterprise

and not one whose interest lies in supporting informal traders. However the developer does

recognize that their development will attract some form of informal sector activity to the

surrounding areas.




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Informal Trading Centre Development

There is both a desire from the existing informal sector traders for better facilities and a

desire by municipal and provincial government to encourage informal traders and facilitate

their success. This suggests that an informal trading should be built in the vicinity of the

proposed shopping centre site.

Municipality approves shopping centre

DEDT sees opportunity for informal trade and appoints

GMA as service provider

GMA project team conducts research and suggests way

forward

GMA project team provides plan to include in an overall

centre and precinct plan

GMA project team interacts withkey relevant stakeholders

eDumbe Local Municipality

Informal Traders

Taxi Operators

DEDT

Shopping centre approval agreed in principle with the

private sector developer




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Existing informal trading inPaulpietersburg and Dumbe

Township

The taxi rank in Paulpietersburg central business district (CBD) is the base for most traders

who mostly set up crude stalls using tables, crates and boxes. Other traders in the area

locate outside the nearby hospital and at a school.

In Dumbetownship our site visit revealed very little informal trading activity. Although

facilities for informal trading are better in Dumbetownship than in Paulpietersburg CBD,

they are not very well utilised, with many stalls and SMME shops lying unoccupied. The

pictures below give an overview of the situation.

The taxi rank in the Paulpietersburg central business district




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Unoccupied and closed up SMME shops at Dumbe Township taxi rank

One of the few SMME shops occupied in Dumbetownship (selling hot fried chips with

accompaniments)




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Partly occupied informal trading stalls in Dumbetownship

The reasons cited for lack of take-up of existing SMME and informal trading infrastructure in Dumbetownship is insufficient footfall at the

locations where these facilities have been constructed. This serves to emphasise the critical need to ensure that a high volume of

potential shoppers will be attracted to move through the proposed development site before the planned developments is initiated.




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The Vision, Development Concept and Role Envisaged for the

Paulpietersburg Site Based on its Strengths and Identified

Opportunities

A critical aspect of the proposed informal trading centre development is that it will be

located alongside a planned large formal retail shopping centre attraction. This centre, well

situated within walking distance of Dumbe township, and close to central Paulpietersburg

and the neighbouring industrial precinct. It is thus perfectly located to attract a large

number of customers. Additionally it is located at the T-junction of the R33 provincial road

between Paulpietersburg and Piet Retief and the D1880 district road to Bilanyone,

Klipspruit, Blinkwater and Schaapkraal and is close to (within easy walking distance of) the

majority of the population of eDumbe Local Municipality, that comprises 1,614 households.

The site is also within walking distance of the hospital at Dumbe, a major employer, and

Paulpietersburg Industrial Area where further significant employment occurs with attendant

spending power. The proposed new shopping centre will be the closest major retail facility

to Dumbetownship, the Paulpietersburg Industrial Area, as well as to Bilanyone, Klipspruit,

Blinkwater and Schaapkraal. This junction is a natural meeting point and obvious location

for the proposed development. The junction will draw traffic to a well located taxi rank

with good facilities and associated informal trading activities can be expected to develop

naturally at the site if planning permission is granted and appropriate facilities provided.

The vision for the development is therefore to develop a trading area between a taxi rank

and closely integrated with a major formal private sector funded shopping centre. Such a

taxi rank would, in any case, be required for the formal private sector funded shopping

centre itself.




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Such a facility can be expected to encourage and enhance opportunities for informal trading

and local economic development through attracting a large footfall of consumers to the

area, whilst providing facilities that enhance the ability of informal traders to operate

successfully and increase and expand their businesses will further guarantee the success of

such ventures.

As was determined in the survey undertaken by the study team of the informal and SMME

sector, the traders themselves have requested facilities such as sheltered stalls, water,

electricity and lock up storage bins in a convenient trading area adjacent to a taxi rank are

and on the pedestrian route between the taxi rank and the main shopping centre.

Linkages between the Site and other Roleplayers

As mentioned above, the interface with the taxi rank and the trading centre will be the key

element in the success of the proposed informal trading area. The location of the proposed

development at the T-junction between the R33 provincial road and the D1880 district road

to Bilayoni, Klipspruit, Blinkwater and Schaapkraal gives the site a clear advantage over

other alternative sites. The site is within walking distance of Dumbetownship, the hospital

and the industrial area of Paulpietersburg, all major sources of spending power in the

municipality.




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Development of an Institutional Matrix for the Proposed

Informal Trading Centre

Key institutional players that will be called upon to support this development include:

Local and District Municipalities

The primary role of local government (with government support) will be to establish an

environment conducive to attracting local informal and SMME investment at the proposed

informal trading centre.

This can be achieved through:

The efficient processing of development applications submitted in terms of the 2008

KZN Planning and Development Act;

Contributing funding towards the development of public spaces and public use

areas;

Upgrading the urban environment and specifically transport infrastructure (roads,

pavements, taxi ranks etc);

Encouraging and supporting the development of residential areas around Dumbe

township and specifically promoting the development of middle income housing;

and

Facilitating other forms of development in the Paulpietersburg area, including

private and public sector investment.




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The eDumbe Local Municipality can draw on the skills and resources of the Zululand District

Municipality of which eDumbe Local Municipality forms a part.

Assessment of Capacity:The eDumbe Local Municipality has been actively involved in the

feasibility assessment process and key staff members of the municipality have

demonstrated the capacity and the willingness to participate in making this development a

success. Engineering staff of the District Municipality are available to assist with more

specific issues relating to engineering services; and

A Development Planning Shared Service has been established in the Zululand District

Municipality, based in Ulundi aimed at supporting local municipalities that belong to the

Zululand District during the introduction of the 2008 KZN Planning and Development Act.

The KwaZulu-Natal Department of Economic Development & Tourism

The Department of Economic Development, together with the eDumbe Municipality,

initiated the project and have to date provided a facilitation role, both in terms of making

available funding and human resources. In discussions with the Department to date

indications have been that in terms of the provincial trading centre programme “deserving”

developments may qualify for further support from the Department.

Assessment of capacity: The Department of Economic Development has managed and

participated in the feasibility assessment process to date and has illustrated a strong

capacity to deal with projects of this nature. Projects focussing on implementation are also

being managed by the department, which is also a potential source of funding for projects

of this nature with a significant bias towards local economic empowerment.




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Existing Paulpietersburg and Dumbe Township Informal Traders and SMMEs

Existing business owners in the Paulpietersburg and Dumbe Townshipareas stand to benefit

both directly and indirectly from the establishment of a trading centre at the proposed site.

If not appropriately managed the trading centre could, however, impact negatively on

existing businesses and care should be taken to avoid this. It is therefore important that

local businesses are involved in and understand the process towards the establishment of

the trading centre at the proposed site.

Local business owners should also be encouraged to:

Take up space in the proposed development; and

Negotiate arrangements for benefitting from bulk buying.

Assessment of Capacity:Existing informal traders have been closely consulted during the

planning process, primarily, as this was their wish, through the Paulpietersburg Informal

Traders’ Association. Representatives from the traders’ association have participated fully

in the process having jointly identified three representatives for attending the project

steering committee meetings.

Funding Institutions (Provincial Government)

Due to the non-commercial nature of this project there are very few funding agencies

available to provide capital funding and for developments of this nature. The most

promising source of funding is the KwaZulu-Natal Department of Economic Development

and Tourism in partnership with the eDumbe Municipality, itself.




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As the municipality is the current land owner and informal trading centres are not

traditionally regarded as private sector investments, we recommend that the land on which

the informal trading centre and adjacent taxi rank are developed remain under the

ownership and control of eDumbe Local Municipality.

The institutional matrix on the following page summarises the key issues, responsibilities

and funding responsibilities implicit in such an institutional arrangement. Although capital

funding of the informal trading centre and taxi rank is the responsibility of the eDumbe

Local Municipality, it is envisaged that the funding will, in reality be provided by the

KwaZulu-Natal Department of Economic Development and Tourism or some alternative

source of development capital funding.




Page 61 of 86

INSTITUTIONAL MATRIX

Issue Responsibility Funder*

Capital Funding eDumbe Local Municipality KwaZulu-Natal Dept. of Economic

Development and Tourism or alternate

Safety and security

eDumbe Local Municipality will pay for security for the

centre and taxi rank eDumbe Local Municipality

Health and waste management

eDumbe Local Municipality will collect all waste and pay

for municipal cleaners or a sub-contractor to clean at

the site


Maintenance of facilities

Trading centre management will maintain the facilities

and will access the funds account held by eDumbe Local

Municipality for this purpose


The synergy and coordination

between the community and on-

going operational activities

A trading centre management committee consisting of

the taxi owners’ association, informal traders’

association, Property Solutions shopping centre

management and KZN DEDT and municipal officials will

liaise over issues relating to the community


Environmental management

eDumbe Local Municipality is responsible for monitoring

the environmental health and integrity of the site eDumbe Local Municipality

Relationships with relevant organs of

state

eDumbe Local Municipality is responsible for liaison with

relevant organs of state eDumbe Local Municipality

*to help offset the costs of the funding responsibilities of eDumbe Local Municipality, it is envisaged the levies at an affordable cost will be

paid by the informal traders and the taxi association for use of the trading facilities and taxi rank. This is based on discussions with the

Informal Traders Association where they agreed to continue paying an affordable R10 monthly rental fee.




Page 62 of 86

Infrastructure for Off-Site and On-Site Services and Including

Access and Service Provision and Management

SCOPE OF PROJECT

1. Taxi rank for 20 taxis including access roads.

Area of taxi rank is 200 m² covered area with road under, pedestrian area in

the centre for safe loading.

2. 100 Stalls each 2 m x 1 m wide

3. 44 m² Office block with toilets

4. 10 Shops each 4 m x 3 m wide

5. Paving on both sides of stalls and shops

6. Water taps at every 20 m with gulley

7. Landscaping as necessary

8. External lighting etc

ESTIMATE

The estimate has been based on the above areas and has been prepared on the

superficial area and rough quantities method.

ASSUMED PROGRAMME

For the purpose of planning the project and calculating escalation, the following

programme has been assumed :-

Date of this Budget Estimate No. 1 9 April 2010

Out to Tender Week 6

Tender Return Week 7

Tender Report Week 8

Tender Approval Week 10

Building operations commencement Week 12

Building operations completion Week 33




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ESCALATION

Escalation assumptions have been made as follows :-

Escalation before tender :

From estimate 19th April 2010 to tender date 11th June 2010

Escalation during construction :

From building contract date (CPAP - Haylett)

From building tender date 11th June 2010 @ 0.28% per month including a 0.7 (factor) for

cash flow until completion

VALUE ADDED TAX

Value Added Tax at 14% has been included.

SPECIFICATIONS

1. The specification assumed for the Informal Trading Stalls is of a concrete and

face brickwork structure with metal roof over

2. The electrical will be for supply to all stalls, shops and street lighting

3. Area around stalls and shops to be paved with brick paving

4. Office and toilets to be hard wearing finish

5.

Shops to be of brickwork with faced walls externally and plaster and painted

internally

6. Standpipes are to be supplied every 20 m with gulley under




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EXCLUSIONS

1. Any furniture and loose fittings

2. Unforeseen foundation problems

3. Any individual shop fittings

4. Any cooking equipment and other trading specific equipment

5. The taxi rank will cost an additional R619 000 not included in the

costing below as it would need to be built whether the informal trading

facilities are built or not.




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SUMMARY

1 100 INFORMAL TRADERS' STALLS

R2,038,000.00

2 OFFICE BLOCK AND TOILETS

R308,000.00

3 10 SHOPS

R480,000.00

4 EXTERNAL WORKS

R202,000.00

5 SOIL DRAINAGE

R25,000.00

6 STORMWATER DRAINAGE

R 75,000.00

7 SITE LIGHTING

R60,000.00

8 LANDSCAPING

R100,000.00

9 ELECTRICAL CONNECTION AND SUPPLY

R50,000.00

ESTIMATED BUILDING COST (excl VAT)

R3,338,000.00

ESCALATION

Before tender

R97,000.00

During construction

R58,000.00

R155,000.00

R3,493,000.00

10 VAT @ 14%

R489,000.00

ESTIMATED BUILDING COST (incl VAT)

R3,982,000.00

ESTIMATED PROFESSIONAL FEES

Total Professional Fees

Architect R297,000.00

Quantity Surveyor R222,000.00

Electrical Engineer R31,000.00

Structural Engineer R134,000.00

Safety Consultant R16,000.00

R700,000.00

Disbursements

R150,000.00

Plans Approval

R50,000.00

R900,000.00

VAT @ 14%

R126,000.00

ESTIMATED FEES

R1,026,000.00

TOTAL PROJECT COST

R5,008,000.00




Page 66 of 86

100 INFORMAL TRADERS' STALLS

DOUBLE STALL

1.

Foundations

R7,300.00

2.

Ground Floor Construction

R600.00

3.

Counter Slab

R2,800.00

4.

External Walls

R5,500.00

5.

Roof

R6,100.00

6.

Door

R1,500.00

7.

Floor finishes

R100.00

8.

Internal Wall Finishes

R600.00

9.

Slab Finishes

R700.00

10.

Electrical Installation

R2,200.00

R27,400.00

x 50

TOTAL VALUE FOR 50 DOUBLE STALLS

R1,370,000.00

11.

Plumbing Installation

R28,700.00

12.

Fire Protection

R43,700.00

13.

Soil Drainage

R43,500.00

14.

External Paving

R155,600.00

15.

Bin Washing Area

R5,300.00

R1,646,800.00

16.

Preliminaries

R205,900.00

R1,852,700.00

17.

Contingency 10%

R185,300.00

R2,038,000.00

18.

ESCALATION

R95,100.00

Before tender

R59,400.00

During construction

R35,700.00

R2,133,100.00

19.

VAT @ 14%

R298,600.00

ESTIMATED COST

R2,431,700.00




Page 67 of 86




Page 68 of 86

Operational costs, per annum, below are estimated as follows:

An informal trading centre management fee for handling monthly meetings, such as

the cost of snacks, and other minor expenses.

The LED Officer for eDumbe currently oversees the informal trading area at the taxi

rank in Paulpietersburg and it was decided that appointment of a new manager will

not be necessary as the LED officer will manage the centre thus no management fee

is attached.

Cleaning staff to clean up on a full time basis, this will be handed by the Informal

Traders Association as agreed in with the representatives of the association in the

steering committee meetings. Although individual stall holders will be responsible

for cleaning their stalls, litter and other rubbish will need to be collected and bins

emptied. Furthermore toilets will need to be cleaned.

Two security personnel will be employed to guard the centre at night. These costs

will be on a per shift basis.

Maintenance of the gardens surrounding the informal trading centre will be minimal,

and a small budget is allowed for monthly gardening duties

Maintenance and servicing of the building, to avoid depreciation

The electricity bill

The cost of insurance on the building and other facilities

Other costs to cover ad hoc extraneous expenditure that do not fit into the above

categories

Project Implementation and time frames

The implementation of the project can only take place once construction of the shopping

mall is underway. The success of the shopping centre and trading area are intrinsically linked

thus both will need to be operational simultaneously. It is expected that the trading centre




Page 69 of 86

will become operational three months after construction begins. Informal Traders would be

likely to move into the site once the shopping centre is operational.




Page 70 of 86

Financial Model

Table 3.1: Cash flow for Paulpietersburg Informal Trading Centre

Cash flow for Paulpietersburg Informal Trading area

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Rental Returns from 10 Shops R 24,000 R 25,200 R 26,460 R 27,783 R 29,172 R 30,631 R 32,162 R 33,770 R 35,459 R 37,232

Informal Sector Fees R 12,000 R 12,960 R 13,997 R 15,117 R 16,326 R 17,632 R 19,042 R 20,566 R 22,211 R 23,988

Taxi Operators Usage Rental R 12,000 R 12,600 R 13,230 R 13,892 R 14,586 R 15,315 R 16,081 R 16,885 R 17,729 R 18,616

Total Rental Income R 48,000 R 50,760 R 53,687 R 56,791 R 60,084 R 63,578 R 67,286 R 71,222 R 75,400 R 79,836

Operational Costs

Centre Management R 5,400 R 5,670 R 5,954 R 6,251 R 6,564 R 6,892 R 7,237 R 7,598 R 7,978 R 8,377

Security R 36,600 R 38,430 R 40,352 R 42,369 R 44,488 R 46,712 R 49,048 R 51,500 R 54,075 R 56,779

Gardens R 2,400 R 2,520 R 2,646 R 2,778 R 2,917 R 3,063 R 3,216 R 3,377 R 3,546 R 3,723

Service and Building Maintenance R 21,000 R 22,050 R 23,153 R 24,310 R 25,526 R 26,802 R 28,142 R 29,549 R 31,027 R 32,578

Electricity R 22,000 R 23,100 R 24,255 R 25,468 R 26,741 R 28,078 R 29,482 R 30,956 R 32,504 R 34,129

Insurance R 4,800 R 5,040 R 5,292 R 5,557 R 5,834 R 6,126 R 6,432 R 6,754 R 7,092 R 7,446

Other R 23,230 R 24,392 R 25,611 R 26,892 R 28,236 R 29,648 R 31,130 R 32,687 R 34,321 R 36,037

Total Operational Costs R 115,430 R 121,202 R 127,262 R 133,625 R 140,306 R 147,321 R 154,687 R 162,422 R 170,543 R 179,070

Net Income/loss -R 67,430 -R 70,442 -R 73,575 -R 76,834 -R 80,222 -R 83,743 -R 87,401 -R 91,200 -R 95,143 -R 99,234

The trading centre will require ongoing financial support from the eDumbe Local Municipalityof between R160,000 and R250,000 per annum

over the first ten years of operation.




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Risk Identification, Assessment and Mitigation

The clear identification of potential risks to the trading centre development proceeding

smoothly allows for contingency planning to be undertaken. This section focus on

identifying major risks to the successful completion and operation of the informal trading

centre development at the proposed site at the T-junction of the of the R33 provincial road

to Piet Retief and the D1880 district road west to Bilanyoni, Klipspruit, Blinkwater and

Schaapkraal.

In matrix on the following pages the project team:

Describes potential risks;

Identifies approaches to the mitigation of the risk or alternative approaches to be

considered;

Rates the likelihood of the risk impacting on the development; and

Rates the potential impact should the potential risk be realised.




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Risk Description Mitigation / Alternatives Risk Rating

Likelihood Impact

External Risks or threats

Upgrading of major

access roads

The upgrading of the R33 to provide a

dedicated turning lane for south bound

traffic using the R33 to easily access the

proposed development site.

Widening the road to provide an extra turning

lane will allow easy flow of traffic if funding

for a full upgrade the upgrade is not available.

Low Major

Risks relating to the development of the node

Inability to maintain an

adequate level of local

government service

provision to the

proposed development

site.

The feasibility of the development is

dependent on the highest possible

number of shoppers being attracted to

the proposed development site. The

taxi rank proposed for the site is a

potentially important magnet attracting

additional footfall.

In the absence of development of the taxi

rank being funded and developed by the

private sector developer of the proposed

formal shopping centre development, steps

must be taken by the municipality and

provincial government to develop this critical

infrastructure at the proposed site.

High Major, if

adequate

footfall is to

be attracted

to the site.




Page 73 of 86


Likelihood Impact

Risks relating to the development of the node (continued)

Lack of coordinated

development at the

proposed site.

Ad hoc development of facilities and

infrastructure at the site has an adverse

medium to long term impact on the

functioning of the development as. This

will impact negatively on investment as

a whole.

A development plan for the proposed

development site must be prepared by the

municipality to ensure that planning of the

three key components, the formal shopping

centre, the informal trading centre and the

taxi rank are successfully co-ordinated.

High Major

Rural incomes decline

reducing the

disposable income

A range of factors may impact on

income levels in rural levels declining

further, including increasing

unemployment levels, difficulties in

accessing pension payments and other

social grants, and drought.

The municipal LED plan should include the

planned development of the entire catchment

area and corresponding LED plans need to be

developed to support sustained and

continuing growth in disposable incomes in

the area.

Possible Major




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Likelihood Impact

Risks relating to the trading centre development

Infrastructure cannot

be provided to the

development

Water, sanitation, solid waste removal,

storm water and electricity is essential

for the effective operation of the trading

centre

Development of a storm water channel will be

required.

A dedicated operator will need to collect

waste materials generated on site and arrange

for their disposal at a municipal landfill.

An Eskom electricity servitude traverses the

site and either an application to relocate the

power line is proposed or architects will be

required to plan such that there is no

encroachment of Eskom’s servitude.

Low Major

Physical constraints to

site development

There is currently a commercial

plantation on the site.

No buildings may be built within the

provincial road reserve.

It will be necessary to negotiate timeous

harvesting of the timber on the site in order to

avoid delays in the development process.

Low Low




Page 75 of 86


Likelihood Impact

Operational risks

Taxi operators do not

presently utilize the

site as a rank

If taxi operators choose not to base a

rank at the centre it would make it

difficult to attract customers.

Building attractive facilities to encourage taxi

operators to set up a rank such as toilets,

showers, rest rooms and offices.

Low Major

High cost of accessing

specialist management

The proposed trading centre could be

managed by inadequately trained and

skilled management team.

This risk can be avoided by negotiating an

initial five to ten year contract with an

established property management company

to provide the necessary resources to ensure

successful management. A commitment to

train local resources to take over the

responsibility will allow a transfer of skills to

the residents of Paulpietersburg.

Low Major




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Likelihood Impact

Financial risks

Inability to secure

funding

Securing the required funding for the

proposed project

Securing grant funding for a project such as

this with a primarily social agenda is of

paramount importance.

High Project

derailed

Tenants cannot be

attracted to

development

Tenants that can attract the public and

that can regularly pay rent are essential

for the long-term success of the project.

Should the right mix of goods and

services not be offered at the centre, the

residents will continue to travel to the

Paulpietersburg central business district

to purchase goods and services.

The trading centre should be marketed and

qualifying in formal trader and SMME tenants

should be confirmed before the development

takes place. This allows for proper planning of

space within the centre. It would be beneficial

to partner with a developer that has a good

understanding of tenanting issues in informal

trading.

Low High




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Project Feasibility and Way Forward

Project Feasibility

In summary, it needs to be emphasised that the opportunity to develop a well planned

informal trading centre adjacent to and integrated with a taxi rank and with a formal private

sector shopping centre development exists at the proposed site at the T-junction of the R33

provincial road to Piet Retief and the D1880 district road west to Bilanyoni, Klipspruit,

Blinkwater and Schaapkraal.

This had been adequately demonstrated in the accompanying situational analysis report and

survey analysis report. The purpose of this feasibility assessment report (Phase 4 of the

project plan) is therefore aimed at establishing what must be done to ensure that the

development of an informal trading centre at the proposed site is feasible.

In short, the assessment has illustrated that:

The site identified is suitable for the development envisaged (well-located,

infrastructure can be provided, obstacles to development can be addressed);

Development an the proposed site as a whole must be carefully coordinated by local

government;

An institutional structure must be established that will act as the co-ordinating

management entity for the entire site;

An operational model that is practical is proposed for the informal trading centre

and taxi rank; and

The financial feasibility of the current proposals is found to be sustainable, provided

the following conditions are met:

1. Confirmation that the private sector funded and developed shopping

centre planned for the same site is definitely going to be built must be

obtained




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2. Commitment of the private sector developers to full co-operation in the

joint planning and management of the formal sector shopping centre, the

informal trading centre and the taxi rank must be secured

3. The R33 provincial road must be widened and adequate and safe access

to the site must be constructed

4. The eDumbe Municipality must secure funding for contruction of a taxi

rank for at least 20 taxis on the site

5. The eDumbe Municipality must commit to ongoing operational funding of

the taxi rank and informal trading centre on the site

6. Formal commitment of the Paulpietersburg Infomal Traders’ Association

and of the Paupietersburg taxi industry to the project must be secured

It is recommended that the establishment of the informal trading centre be undertaken if

theses conditions can be met.

The Way Forward

The following key activities must be facilitated in order to ensure that the development of

the proposed informal trading centre adjacent to and integrated with a taxi rank and with a

formal private sector shopping centre development proceeds:

Securing the land: Arrangements for permission to develop on the site must be

secured from the landowners, eDumbe Municipality;

Identifying and securing funders: Public or donor sector financial support for the

development must be secured (this will be dependent on the finalisation of the

private sector shopping centre plan and the financial feasibility based thereon);




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The design of the facility: Once the availability of funding has been confirmed the

more detailed planning of the informal trading centre and taxi rank should proceed

in close consultation with the private sector shopping centre development company;

Development application: Once a design has been agreed with all stakeholders and

the land has been secured a development application must be prepared and

submitted to the eDumbe Municipality;

Tenant identification: Potential tenants must be identified, and fair and transparent

selection process must be engaged in.




Page 80 of 86

Bibliography

1. Dr. Altman, Miriam, 2008. Formal – Informal Economy Linkages. Human Sciences

Research Council (HSRC).

2. Cairns, Rob, 2006. Nkandla Local Municipality: Review of the Local Economic

Development Strategy. Part of the Uthungulu Package of LED Strategies funded by

Gijima KZN.

3. Department of Energy, undated. Integrated Energy Centre (IeC): Concept Paper

Summary.

4. Inhloso, 2008. Nodal Framework Plans for Identified Nodes: Status Quo and

Concept Nodal Layouts.

5. Nkandla Municipality, 2008. Nkandla Municipality IDP Review 2008/9.

6. Nkandla Municipality, 2009. Nkandla Municipality Integrated Development Plan.

7. Valodia, Imraan, 2006. Formal/Informal linkages in South Africa: Some

considerations. School of Development Studies, University of KwaZulu Natal and

Human Sciences Research Council (HSRC).




Page 81 of 86

Appendix A

Questionnaire

What is your name? …………………………………………………………….……………………………………………………..…………..…….……

Do you belong to the Traders’ Association? ………………………………………..……………………………………..…………..…….……

What do you sell? ……………………………………………………………………………………………………………………….…………..…….……

Is there anything else you would like to sell? YES / NO

If so what?…………………………………………………………………………………………………………………………………..……… …..…….…

If so, why are you not selling this? ………………………………………….…………………………………………………..…………..…….…

Who are your customers? …………………………………………………………………………………………………………..………..…….……

Where do your customers mostly come from? ………………………………………………………………………………………..…….… 1. Dumbe? 2. Paulpietersburg? 3. Rural Areas (such as Emakholweni)?

Who are your competition? ………………………………………………………………………………………………………………..…..…….…

Why do you choose to sell at this place (namely, ………………………………………………………………………..…..…….………..)?

…………………………………………………………………………………………………………………………………………………………….…..…….…

Would you like your business to be located somewhere else? YES / NO

If so, where? ………………………………………………………………………………………………………………………………….………..…….……

Why would you prefer this other place? ………………………………………………………………….……………………………..…….……

Is it important for your business to be located near to: ……………………………..…….……………………(specify any other)

1. The taxi rank? YES / NO Why?

…………………………………………………………………………………………………….……………………………………………..…….…

2. The Spar supermarket? YES / NO Why?

……………………………………………………………………………………………………….…………………………………………..……...

3. The centre of Paulpietersburg? YES / NO Why?

……………………………………………………………………………………………..…….……………….………………………………………

4. The banks? YES / NO Why?

…..…….…………………………………………………………………………………………………………………………………….……………

5. The place where pensions are paid? YES / NO Why?

……………………………………………………………………………………………………………………………….…………………..……….

Would you like better facilities? YES / NO

If so, what facilities? ……………………………………………………………………………………………….………..…….……………

If so, where? …………………………………………………………………………………………………………..………..…….……………

Have you ever been offered facilities in a different location? YES / NO

If so, where and why did you not move to the other location? …………………………………………..…….………………………

What is your usual daily turnover (in rands)……………………………………………………………………… …..…….……………………




Page 82 of 86

Appendix B

Below is the comprehensive list of traders interviewed in Paulpietersburg.

Name of Trader Trading

Ana Manana Fruits, vegetables and malt

AneleNtuli Hair services, telephone services and airtime

Anna Masuku Fruits and Vegetables

Bankekile Kunene Vegetables

Beatrice Nkosi Clothes and shoes

Beatrix Msibi Vegetables

BelinahMkhwazi Fruits and vegetables

BhekisiphoMthethwa Shoes and other

BonganiSibiya Shoes, hair services and other

BongiweHlengiwe Vegetables

BuhleMsane Fruits and vegetables

BusanganiXapa Clothes

BusisiweMaseko Clothes

BusisiweMkhabela Fruits and vegetables

BusisweMasego Vegetables and maize meal

CatrinaNdlovu Fruits and vegetables

ChrisandaHlathshwayo Fruits and Vegetables

ChrisantaHlatshwayo Fruits and vegetables

Debby Mbokazi Cooked food

DlabusiSkhosana Vegetables

DuduziMadi Vegetables, sweets and chips

DuduzileDlangolo Clothes

EgnesNkwanyana Other

Elizabeth Cilo Fruits, vegetables and sweets

Elsie Kunene Fruits and Vegetables

EmaMasuku Fruits and chips

Eunice Hadebe Vegetables

Eunice Vundla Fruits and Vegetables




Page 83 of 86


FikileMadonsela Medicine

Flora Mbatha Fruits, vegetables and chips

FlorahFikile Fruits and vegetables

FlorenaSikhakhane Fruits, vegetables and maize meal

Florence Maseko Fruits and Vegetables

Gabi Xaba Vegetables

GcinekileMthethwa Clothes

Gloria Buthelezi Fruits and vegetables

Grace Masonda Vegetables

GurtrudeMkonza Vegetables

HlengiweZwane Vegetables

Ivy Ngwena Vegetables

JaromeMthembu Clothes and other

JohanneNhlengethwa Fruits and Vegetables

JoiceMdlalosi Chips and other

Joseph Shongwe Other

Joyce Ngwenya Fruits and Vegetables

Julialie Kunene Fruits, vegetables and malt

KhoseZikala Vegetables

Kumalo Beans and chips

Lethi Kunene Fruits and vegetables

LinahGule Fruits and vegetables

LindiweDlongolo Clothes

LiniduShelembe Fruits, vegetables and chips

LiphietNkosi Fruits and Vegetables

Lucky Ngenya Sweets, telephone services and airtime

MabefuBhekiswayo Cigarettes, cooked food and maize meal

MandlaNgwenya Fruits and vegetables

MandlaNkosi Cigarettes, chips and telephone services

Margret Zwane Fruits and Vegetables

Marian Majola Fruits and Vegetables

Martha Dlodlo Fruits and Vegetables




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MatopiMasuke Cooked food and chips

Mavis Mayisela Vegetables, cigarettes, sweets and telephone services

Mavis Ndludlu Shoes

Mavis Zwane Cooked food

MbongeniNgenya Fruits, vegetables, cigarettes, sweets and other

MbongeniShoyisa Other

MduduziShoyisa Other

MelikaBophela Clothes

MfanafuthiZisongo Other

MphileNdaba Vegetables

MzoMlambo Fruit, cooked food and chips

NokhanyeNgembe Fruits, vegetables, cigarettes, sweets and telephone services

NokhuthulaShabalala Fruits and Vegetables

Nomusa Buthelezi Fruits, vegetables and chips

NomusaNkumalo Fruits, vegetables and chips

NomusaZwane Fruits and vegetables

NomvulaMaseko Fruits and vegetables

Nomvula Zulu Fruits and Vegetables

NtombifuthiMthethwa Fruits and Vegetables

Ntombikayise Kunene Fruits and vegetables

NtombikayiseMthethwa Vegetables

PhelileNkosi Fruits and Vegetables

Philagone, Dlamini Medicine

PhilanganiXulu Fruits and vegetables

PhollyKhumalo Fruits and vegetables

PhumzileMsane Fruits and vegetables

PhuzileXaba Fruits and Vegetables

PhylisZwane Fruits and Vegetables

Pretty Lukhele Incense, steel wool and pot scrapers

Regina Mtshahi Fruits and Vegetables

Rita Khoza Fruits and Vegetables

Roster Linidiwe Telephone services




Page 85 of 86


Sam Nkosi Telephone services

SamariXaba Fruit and other

Samaria Bophela Fruits, vegetables and malt

Samaria Hlatshwayo Vegetables and ice cream

SamukelisiweMbatha Fruits and Vegetables

Sandile Nkosi Hair services

Saulina Kunene Fruits and Vegetables

SbongileSibeko Ice cream

SelinahNkosi Fruits and vegetables

ShilaZwana Fruits, vegetables and chips

SibongileKhanyile Fruits and vegetables

SibongileMhlombu Fruits and Vegetables

Sibongile Ndebele Fruits

SibongileSibiya Fruits and vegetables

SibongileXulu Fruit and chips

Sibongile Zulu Fruits, vegetables and chips

Siboniso Zungu Telephone services

SifisoSibiya Clothes and telephone services

SilungileMbatha Fruits and Vegetables

Simon Sibiya Vegetables

SmangeleMaseko Fruits and Vegetables

SmangeleMothaa Fruits and Vegetables

SonosiniDlamini Medicine and herbs

SphiweKhanyile Vegetables

ThabisoMbatha Shoes and hair services

ThandaziHlomuka Fruits, vegetables, cigarettes, malt and edible soil

ThandiNdaba Fruits and Vegetables

ThandiXhakaza Fruits and vegetables

ThembeniDlongolo Clothes

ThembiShabangu Fruits, vegetables and chips

ThembisileNtshangosi Fruits and vegetables

ThokoZwane Vegetables and other




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ThompiNgwenya Ice cream

ThulaniNdwandwe Telephone services and airtime

TryphinahNkwanyana Fruits, vegetables and malt

Veronica Mkhonza Vegetables

Victoria Madonsela Fruits, vegetables and chips

Victoria Mkhwanazi Fruits and cooked food

WinnieHlatshwayo Fruits and Vegetables

Zanele Zulu Fruits, vegetables and chips

ZodwaVundla Fruits, cigarettes, sweets, chips and other

Documents

Consolidated Project Report: Situational Analysis, Survey ... · Study of the Feasibility of Establishing an Informal Trading Centre at Paulpietersburg Consolidated Report - August