Long waiting lists, rising rental costs and limited trading space are placing growing pressure on informal traders and township entrepreneurs across South Africa as competition for affordable business containers and stalls continues to intensify.
This comes as new data from the 2026 Voice of the Commercial Tenant Report by TPN Credit Bureau shows that more than half of commercial tenants say rental increases above 4% are no longer sustainable in the current economic climate.
The report also highlights that high rental costs, rising utility expenses and infrastructure-related challenges remain key pressures across retail, office and mixed-use sectors.
At E&T container market in Pretoria Central, traders say access to trading space remains limited despite high demand for business containers in the area.
Hairdresser, make-up artist and installation specialist Nomsa Kelo says she has been on a waiting list for more than three years, still hoping to secure a permanent trading container.
“The container market is a very good place for business, however most of the containers are occupied by foreign nationals, which makes it very difficult for us South Africans to occupy the spaces,” Kelo said.
She said competition for containers has intensified, making it difficult for new traders to enter the market.
Container market access under pressure
Kelo said pricing pressure from customers has also affected earnings, forcing traders to lower prices while still covering business costs.
“The pricing is also a problem because clients now negotiate every price, and that is not fair because we use hair products to make a living. If clients expect price cuts all the time, you end up working only for products and rent with no profit,” she said.
She said traders are paying between R3 500 and R9 000 for container spaces, despite lower rates being advertised in some cases.
Kelo also raised concerns about electricity arrangements, saying traders are required to pay an additional R400 before purchasing electricity units each month.
“Every month on the first, you must pay R400 before buying electricity; they take it when you load units. If you buy R100 electricity, you only get one unit until that R400 is paid,” she said.
She said she remains on the waiting list as market conditions continue to change.
“It is a proper place for business, I won’t lie. I’ve been holding on, thinking one day I would get a container on the waiting list, but I am still renting under foreign nationals, which was never part of my plan,” she said.
SMEs rethink how they operate amid rising costs
The pressure of rising costs and limited trading space is forcing some small businesses to change how they operate.
Johannesburg-based salon owner and wig seller Beauty Mthembu said rising rent and transport costs pushed her to move away from a fixed trading space.
She now relies on WhatsApp and social media to reach customers and has introduced house-call services.
“Keeping a physical space became too expensive with rent and transport costs going up,” she said.
Mthembu said most clients now contact her online before she provides services at different locations.
“Most of my clients now contact me online first, and sometimes I go to them instead of them coming to a fixed place,” she said.
She added that the shift has helped her sustain her business, although high data and transport costs remain a challenge.
Trading space pressure reflects wider economic strain
The challenges facing traders are reflected in broader commercial property trends.
The TPN report shows that more than half of commercial tenants say rental increases above 4% are no longer sustainable, with rising utilities and operating costs adding further pressure across business sectors.
It notes that tenants are increasingly under strain as cost pressures build across both formal and informal business environments.
As demand for trading space continues to rise, small business owners say competition for containers and informal stalls is increasing, leaving many entrepreneurs operating under pressure and facing long waiting lists in some areas.
