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
1. Introduction
This report provides a critical analysis of the multidimensional challenges experienced
by women working in Soweto's informal sector. It also presents comprehensive,
evidence-based policy guidelines aimed at facilitating their empowerment. The informal
economy, although vital for many livelihoods, remains unstable and under-supported,
especially for women. A nuanced understanding of Soweto's socio-economic and
historical background is essential to devise equitable and impactful interventions.
1.1. Background to the Informal Economy in South Africa and Soweto
South Africa's informal economy constitutes a significant part of the national
employment landscape. By the fourth quarter of 2024, it accounted for 19.5% of total
employment, ranking second only to formal sector employment. This sector comprises
economic activities lacking adequate formal coverage, operating largely outside taxation
and direct state regulation. Informality is typically defined by the absence of income tax
deductions for employees in small firms or by the unregistered status of self-employed
individuals for income tax or VAT.
Soweto's informal sector is a product of apartheid-era marginalisation. Townships
emerged as settlements for Black labourers during the interwar period, receiving little to
no infrastructure investment. Legislation like the 1923 Natives (Urban Areas) Act
reinforced the notion of Black urban residents as temporary, curtailing industrial and
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
1. Introduction
This report provides a critical analysis of the multidimensional challenges experienced
by women working in Soweto's informal sector. It also presents comprehensive,
evidence-based policy guidelines aimed at facilitating their empowerment. The informal
economy, although vital for many livelihoods, remains unstable and under-supported,
especially for women. A nuanced understanding of Soweto's socio-economic and
historical background is essential to devise equitable and impactful interventions.
1.1. Background to the Informal Economy in South Africa and Soweto
South Africa's informal economy constitutes a significant part of the national
employment landscape. By the fourth quarter of 2024, it accounted for 19.5% of total
employment, ranking second only to formal sector employment. This sector comprises
economic activities lacking adequate formal coverage, operating largely outside taxation
and direct state regulation. Informality is typically defined by the absence of income tax
deductions for employees in small firms or by the unregistered status of self-employed
individuals for income tax or VAT.
Soweto's informal sector is a product of apartheid-era marginalisation. Townships
emerged as settlements for Black labourers during the interwar period, receiving little to
no infrastructure investment. Legislation like the 1923 Natives (Urban Areas) Act
reinforced the notion of Black urban residents as temporary, curtailing industrial and
