OPINION | Treat them right and informal workers can boost SA’s economy

The EFF stands in solidarity with the millions of informal workers in SA who form the backbone of the economy yet continue to be treated as criminals.

From street vendors and waste pickers to taxi drivers, domestic workers to spaza shop owners, these workers wake up before dawn every day to earn an honest living, only to be met with harassment, exploitation, and exclusion by a government that refuses to recognise their worth.

Take Mama Thembi, a 56-year-old single mother from Soweto, who has been selling cooked meals at a taxi rank for more than 20 years. Every day, she wakes up at 4am to prepare food for taxi drivers and commuters.

Her hands are calloused from years of chopping vegetables and stirring large pots, yet she continues because she has no other choice; her children’s school fees and groceries depend on every plate she sells. But her struggle is never-ending.

The metro police frequently confiscate her pots and tables, sometimes spilling her food onto the ground. She is treated like a criminal, not a hardworking woman trying to survive.

Then there is Sipho, a young father from Alexandra who earns a living collecting scrap metal and plastic. Every day, he digs through rubbish bins and landfills, pulling his heavy trolley under the scorching sun.

His work is essential — recycling helps reduce waste and protect the environment — yet he is treated like dirt. When his recyclables are taken away by municipal workers, he is left empty-handed, unable to buy food for his child.

The informalisation of domestic work leaves many workers vulnerable to abuse, exploitation, and inadequate compensation. These workers and others need to be brought into formal labour structures to ensure their rights are recognised and protected.

This includes establishing clear regulations regarding remuneration, work safety, and the ability to access benefits and legal recourse. Formalising these sectors is crucial not only for workers’ dignity and safety but also for the broader pursuit of social justice and economic equity in SA.

The informal sector accounts for nearly 30% of total employment in SA, which is almost 3-million people, and contributes over R200bn to the economy each year. Yet, instead of being supported, these workers are forced to operate in hostile conditions with no legal protection, no financial assistance, and no security.

The informal economy should not be seen as a burden but rather as a crucial pillar of economic development. Many successful economies across the world have embraced co-operatives and mixed economic models that integrate informal workers into national policies, creating pathways for sustainable employment and poverty alleviation.

SA must follow suit by ensuring that informal workers receive legal recognition, protection from police harassment, and access to financial services that will allow them to expand their businesses and contribute even more to the country’s economic growth.

The government must provide dedicated trading spaces to vendors and small businesses, and introduce vocational training and co-operative banking systems that will empower informal workers to grow their enterprises and create employment opportunities for others.

In Germany, one in every four informal workers is part of a co-operative, benefiting from financial inclusion, shared resources, and legal protections that allow them to thrive. SA must learn from these models and implement a co-operative-driven approach to economic transformation. By prioritising economic empowerment and shared prosperity, we can create an environment that fosters sustainable development and social cohesion.

The EFF has long called for a shift towards a co-operative and mixed economy where informal workers are allowed to participate meaningfully in national development.

This includes investing in vocational education and apprenticeship programmes that provide practical skills and training, ensuring that informal workers, especially the youth, are equipped to transition into sustainable employment. By aligning education with industry needs and fostering a culture of economic inclusion, SA can drastically reduce unemployment rates and build a skilled workforce.

As SA moves towards cleaner energy sources, the state must ensure that informal workers are included in training programmes and economic opportunities within this sector. A just transition cannot be one that only benefits the elite while the working class is left behind.

Informal workers have the potential to be the driving force behind SA’s transformation into a developed nation. If given the right support, they can be the architects of a thriving economy and could significantly boost SA’s GDP, enhance tax revenue, and strengthen the nation’s economic foundation, benefiting society as a whole.

In turn, informal workers could receive the benefits of formalisation such as the right to unionise; the right to worker’s benefits such as UIF and pension funds; and access to formal financial resources such as mortgages and credit, which allow for upward social and financial mobility.

• Mathulelwa is an EFF MP

SowetanLIVE