The City of Tshwane has approved a new Informal Trade and Township Economy by-law that will give South African traders first preference in the allocation of limited trading spaces, a move officials say will stimulate local entrepreneurship, address unemployment, and correct historical exclusion in the township economy.
The by-law, adopted on 27 November, replaces the outdated street trading by-law and introduces a broader, modern framework for regulating and supporting informal and township-based businesses. According to the City, the previous by-law failed to reflect the scale and complexity of today’s informal sector, which is now a vital driver of livelihoods and economic activity across Tshwane.
MMC for Economic Development and Spatial Planning, Sarah Mabotsa, said the new legislation is meant to create a more enabling and structured environment for township and informal businesses to grow.
“The approval of this new bylaw is an important step for the City and demonstrates our commitment to listening to the needs of the economy and of our residents,” Mabotsa said.
According to Mabotsa, this prioritisation is grounded in Section 9.6 of the by-law, which allows the City to favour South African citizens when trading spaces are limited. The clause references the country’s high levels of unemployment and poverty, and the historical discrimination faced by Black, Indian and Coloured communities under apartheid. It is aligned with Section 9(2) of the Constitution, which permits corrective measures to promote equality.
“Very importantly, the bylaw includes the ability of the City of Tshwane to prioritise the allocation of economic opportunities to South African citizens,” she said.
Street food vendor Lily Sambo, who cooks and sells meals near the Bloed Street Taxi Rank, believes the change could bring stability for traders who rely on daily sales.
“Sometimes you get removed from your spot even though you’ve been here for years. We just want a stable place to work so we can provide for our families. If locals are prioritised, then maybe our children will have a better chance,” Sambo said.
Sambo believes her business with finally grow through the new bylaw.
“We’ve been applying for permits with no success. If the City now prioritises South Africans, it means some of us might finally grow our businesses legally,” said Sambo.
Mary Ngema, who has been selling fruit and vegetables in the Pretoria CBD said the by-law brings long-awaited hope.
“We wake up early, work long hours, and still struggle to get proper trading bays. If this bylaw puts South Africans first, then finally we might get recognised and operate without fear,” said Ngema.
Ngema, however, said she is worried about enforcement and believes the City should educate traders on compliance.
“We want to comply, but sometimes officials come and chase us away even when we are in designated spots. If the City can educate us properly and stop the harassment, then this bylaw will help us grow,” she said.
Mabotsa said the City’s intention is not to exclude anyone but to support inclusive development that responds to both historical and current economic challenges.
“The bylaw complies with the Constitution and takes into account the findings of the Supreme Court of Appeal on the rights of traders,” she added.
Beyond preferential allocation, the bylaw outlines clear duties for both traders and the municipality. Traders must comply with safety and hygiene standards, including ensuring food is not expired or contaminated. The City must provide infrastructure, training, and consistent enforcement addressing long-standing frustrations about arbitrary crackdowns.
