DVA4805
Assignment 3
Unique No: 208522
Due 23 July 2025
,DVA4805
Assignment 3
Unique No: 208522
Due 23 July 2025
Challenges Faced by Women in the Informal Sector in Soweto and Policy
Guidelines for Empowerment
, Contents
1. Introduction ............................................................................................................................................... 3
1.1. Background to the Informal Economy in South Africa and Soweto ................................................... 3
1.2. Significance of Women's Participation in the Informal Sector ............................................................ 4
1.3. Purpose and Structure of the Report .................................................................................................. 5
2. Conceptual Framework: Defining the Informal Sector and Gendered Realities ....................................... 6
2.1. Characteristics and Definitions of the Informal Economy in South Africa .......................................... 6
2.2. The Historical and Socio-Economic Context of Soweto ..................................................................... 7
2.3. Gendered Dynamics and Vulnerabilities within Informal Work .......................................................... 8
3. Multifaceted Challenges Confronting Women in Soweto's Informal Sector............................................ 10
3.1. Economic Precarity and Financial Exclusion ................................................................................... 10
3.2. Infrastructural Deficiencies and Operational Constraints ................................................................. 11
3.3. Legal and Regulatory Ambiguity ...................................................................................................... 12
3.4. Social Stigma, Health Burdens, and Safety Concerns ..................................................................... 13
3.5. Limited Access to Training and Skill Development .......................................................................... 14
4. Policy Guidelines for the Empowerment of Women in Soweto's Informal Sector .................................. 16
4.1. Enhancing Social Protection and Financial Inclusion ....................................................................... 16
4.2. Strengthening Business Development and Entrepreneurial Support ............................................... 17
4.3. Improving Regulatory Frameworks and Facilitating Formalisation .................................................. 18
4.4. Addressing Infrastructural Gaps and Creating Conducive Trading Environments........................... 19
4.5. Fostering Gender-Responsive Governance and Community Engagement ..................................... 20
5. Critical Analysis and Strategic Recommendations ................................................................................. 22
5.1. Intersectional Approaches to Empowerment.................................................................................... 22
5.2. Bridging the Policy-Implementation Gap: Lessons and Strategies .................................................. 23
5.3. Collaborative Frameworks for Sustainable Empowerment .............................................................. 24
6. Conclusion .............................................................................................................................................. 26
References .................................................................................................................................................. 27
, 1. Introduction
This report critically examines the multifaceted challenges encountered by women
operating within the informal sector in Soweto, South Africa, and proposes
comprehensive policy guidelines for their empowerment. The informal economy
represents a vital, yet often precarious, livelihood for a significant portion of the
population, particularly women, whose contributions are frequently undervalued and
unsupported. Understanding the unique socio-economic and historical context of
Soweto is crucial for developing effective and equitable interventions.
1.1. Background to the Informal Economy in South Africa and Soweto
The informal economy in South Africa plays a substantial role in the national economic
landscape, providing essential employment and income opportunities for millions,
especially those who struggle to secure formal sector employment. As of the fourth
quarter of 2024, informal sector employment accounted for 19.5% of total employment,
establishing itself as the second-largest source of jobs after the formal sector. This
sector is broadly characterised by economic activities that are not adequately covered
by formal arrangements, often operating without taxation or direct government
monitoring. Specifically, informal employment is identified where income tax is not
deducted from salaries for employees in small establishments (fewer than five
colleagues), or where self-employed individuals are not registered for income tax or
Value Added Tax (VAT).
Soweto's informal sector is deeply rooted in the historical context of apartheid. The
townships of Soweto originated from shantytowns and slums that emerged with the
influx of Black labourers from rural areas, particularly between World Wars I and II.
These nascent settlements initially lacked fundamental municipal services and formal
governance structures. Apartheid policies, such as the 1923 Natives (Urban Areas) Act,
deliberately reinforced the notion that Black people were temporary residents in urban
areas, thereby restricting industrial and commercial development within townships. This
systemic underdevelopment meant that the growth of informal businesses, such as
street vending, became a critical source of income for many township residents. This
historical trajectory reveals that the informal sector in Soweto is not merely an organic
Assignment 3
Unique No: 208522
Due 23 July 2025
,DVA4805
Assignment 3
Unique No: 208522
Due 23 July 2025
Challenges Faced by Women in the Informal Sector in Soweto and Policy
Guidelines for Empowerment
, Contents
1. Introduction ............................................................................................................................................... 3
1.1. Background to the Informal Economy in South Africa and Soweto ................................................... 3
1.2. Significance of Women's Participation in the Informal Sector ............................................................ 4
1.3. Purpose and Structure of the Report .................................................................................................. 5
2. Conceptual Framework: Defining the Informal Sector and Gendered Realities ....................................... 6
2.1. Characteristics and Definitions of the Informal Economy in South Africa .......................................... 6
2.2. The Historical and Socio-Economic Context of Soweto ..................................................................... 7
2.3. Gendered Dynamics and Vulnerabilities within Informal Work .......................................................... 8
3. Multifaceted Challenges Confronting Women in Soweto's Informal Sector............................................ 10
3.1. Economic Precarity and Financial Exclusion ................................................................................... 10
3.2. Infrastructural Deficiencies and Operational Constraints ................................................................. 11
3.3. Legal and Regulatory Ambiguity ...................................................................................................... 12
3.4. Social Stigma, Health Burdens, and Safety Concerns ..................................................................... 13
3.5. Limited Access to Training and Skill Development .......................................................................... 14
4. Policy Guidelines for the Empowerment of Women in Soweto's Informal Sector .................................. 16
4.1. Enhancing Social Protection and Financial Inclusion ....................................................................... 16
4.2. Strengthening Business Development and Entrepreneurial Support ............................................... 17
4.3. Improving Regulatory Frameworks and Facilitating Formalisation .................................................. 18
4.4. Addressing Infrastructural Gaps and Creating Conducive Trading Environments........................... 19
4.5. Fostering Gender-Responsive Governance and Community Engagement ..................................... 20
5. Critical Analysis and Strategic Recommendations ................................................................................. 22
5.1. Intersectional Approaches to Empowerment.................................................................................... 22
5.2. Bridging the Policy-Implementation Gap: Lessons and Strategies .................................................. 23
5.3. Collaborative Frameworks for Sustainable Empowerment .............................................................. 24
6. Conclusion .............................................................................................................................................. 26
References .................................................................................................................................................. 27
, 1. Introduction
This report critically examines the multifaceted challenges encountered by women
operating within the informal sector in Soweto, South Africa, and proposes
comprehensive policy guidelines for their empowerment. The informal economy
represents a vital, yet often precarious, livelihood for a significant portion of the
population, particularly women, whose contributions are frequently undervalued and
unsupported. Understanding the unique socio-economic and historical context of
Soweto is crucial for developing effective and equitable interventions.
1.1. Background to the Informal Economy in South Africa and Soweto
The informal economy in South Africa plays a substantial role in the national economic
landscape, providing essential employment and income opportunities for millions,
especially those who struggle to secure formal sector employment. As of the fourth
quarter of 2024, informal sector employment accounted for 19.5% of total employment,
establishing itself as the second-largest source of jobs after the formal sector. This
sector is broadly characterised by economic activities that are not adequately covered
by formal arrangements, often operating without taxation or direct government
monitoring. Specifically, informal employment is identified where income tax is not
deducted from salaries for employees in small establishments (fewer than five
colleagues), or where self-employed individuals are not registered for income tax or
Value Added Tax (VAT).
Soweto's informal sector is deeply rooted in the historical context of apartheid. The
townships of Soweto originated from shantytowns and slums that emerged with the
influx of Black labourers from rural areas, particularly between World Wars I and II.
These nascent settlements initially lacked fundamental municipal services and formal
governance structures. Apartheid policies, such as the 1923 Natives (Urban Areas) Act,
deliberately reinforced the notion that Black people were temporary residents in urban
areas, thereby restricting industrial and commercial development within townships. This
systemic underdevelopment meant that the growth of informal businesses, such as
street vending, became a critical source of income for many township residents. This
historical trajectory reveals that the informal sector in Soweto is not merely an organic
