South Africa’s informal economy continues to serve as a vital safety net for millions of citizens, yet many small traders remain locked out of mainstream business growth due to a lack of practical skills.
To bridge that gap, new training initiatives are focusing on equipping traders with the technical knowledge and customer engagement tools they need to thrive.
The Informal Economy Development Forum (IEDF) recently launched a nationwide capacity-building initiative targeting informal traders and small business owners operating through its Community Development Centres (CDCs).
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The training focuses on wholesale and retail (W&R) skills, dry food handling, and ethical trading practices.
According to IEDF Chairperson Mabutho Khumalo, the program aims to train at least 1,000 participants during its first trimester intake, with 20 members per CDC undergoing structured sessions in business management, sales, and customer relations.
“It is not just about training, it’s about unlocking the full potential of our entrepreneurs who form the heartbeat of our nation’s trade and commerce,” Khumalo said.
“Our vision is to build an inclusive economy where no trader is left behind, and every small business becomes a pillar of Africa’s prosperity.”
Recent research by the Small Enterprise Development Institute (SEDI) supports this approach, noting that traders who receive structured business skills training are 40% more likely to expand or formalise their enterprises within a year.
The study found that mentorship and ongoing support after training are key factors in sustaining business growth.
Bev Nel, one of the lead training facilitators, said the sessions are designed to be hands-on and practical, meeting the realities of township and rural traders.
“Knowing each step of the sales process helps participants manage customer interactions more effectively, build stronger relationships, and increase their overall success rate,” said Nel.
The training curriculum will combine classroom learning with peer-based mentorship, ensuring participants not only understand theory but can also apply it in real business scenarios.
Topics will include understanding supply chains, managing stock, and maintaining hygiene standards in food handling; areas often overlooked in informal business settings.
Nel added that many participants come into the sessions unsure of how to structure their daily operations or price their goods competitively.
“A lot of our traders have passion but not the systems,” Nel said. “We’ll focus on helping them keep proper records, understand profit margins, and see customer service as part of marketing, not just a nice-to-have.”
