City of Cape Town Informal Trading Induction Manual (Trader)

TRADER’S WORKBOOK APRIL 2021

INFORMAL TRADING INDUCTION MANUAL This booklet explains key information once traders have received their informal trading permit from the City of Cape Town.

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TABLE OF CONTENTS

DEFINITIONS AND ACRONYMS

PURPOSE OF THIS INDUCTION MANUAL

INFORMAL TRADING

REGULATIONS

STANDARD TRADING CONDITIONS

IMPORTANT BY-LAWS

INFORMAL TRADING INFORMATION

CAPACITY BUILDING AND STRATEGIC SUPPORT

CONTACT DETAILS

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DEFINITIONS AND ACRONYMS CITY:

The City of Cape Town.

INFORMAL TRADE: The trading in goods and services in the informal sector by an informal trader.

INFORMAL TRADER: A person engaging in informal trade, whether employer or employee.

AC:

area co-ordinator

AED:

Area Economic Development

CCT:

City of Cape Town

CO:

compliance officer

COA:

Certificate of Acceptability

ITPS:

informal trading permitting system

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PURPOSE OF THIS INDUCTION MANUAL CONGRATULATIONS ON RECEIVING YOUR INFORMAL TRADING PERMIT. As a new informal trader, there are a few things you may want to know. The purpose of this manual is to provide you with key information and clarity of the City’s trading conditions, Informal Trading By-laws and other relevant information. Therefore, the goal of this manual is to enhance your understanding of the terms and conditions of trading to form a better working relationship between informal traders and the City’s Area Economic Development Branch.

This manual will cover some main areas:

INFORMAL TRADING

REGULATIONS

STANDARD INFORMAL TRADING CONDITIONS

INFORMAL TRADING INFORMATION

STRATEGIC SUPPORT PROVIDED BY THE CITY

CONTACT DETAILS OF RELEVANT DEPARTMENTS

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INFORMAL TRADING The City recognises the key role that informal trading plays in poverty alleviation, income generation and entrepreneurial development and, in particular, the positive impact that informal trading has on historically disadvantaged individuals and communities. As such, it is the Urban Management Directorate’s mandate to support and develop the informal trading sector.

As part of the City of Cape Town’s (CCT) vision to create an enabling environment for economic growth, job creation and offer assistance to those in need, the Area Economic Development (AED) Branch oversees informal trading. AED therefore manages informal trading spaces, permit applications, registrations and cancellations. It is also involved in creating trading plans for trading sites, regulation and compliance, among others.

AED is divided into four areas across the city: 1. Area North 2. Area East 3. Area Central 4. Area South It is important to know which area you fall within should you have any queries, questions or comments.

The contact details can be found at the end of the manual.

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TYPES OF INFORMAL TRADING Informal trading is defined as trading in goods and services in the informal sector by an informal trader. It is allowed in designated areas owned by the CCT and is subject to any trading plan put in place by the City.

There are various types of informal trading. These include: Check Check Check Check Check Check Check Check Check

Street trading Trading in pedestrian malls Trading at markets Trading at transport interchanges

Trading in public open spaces Mobile trading (caravans, light delivery vehicles) Roving trading Trading at special events Beach trading

For more information on beach trading, refer to Recreation and Parks in the contact list at the end of the manual.

PLEASE NOTE

The City is not able to issue a permit to informal traders operating on private land. However, other permits may be required such as business licences, Certificate of Acceptability and permits to trade from home. Please contact your nearest Environmental Health Department or Land Use Department (refer to details at the end of the manual).

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REGULATIONS As indicated earlier, the City regulates informal trading through their AED Branch. This is in line with section 22 of the constitution stating: “… The practice of a trade, occupation or profession may be regulated by law”, and the Businesses Act 72 of 1991, permitting municipalities with the power to regulate informal trade.

AED therefore regulates informal trading through the appropriate by-laws and trading plans. The Informal Trading By-law outlines the rules and regulations of the informal trading sector. These bylaws are applied to City-owned land and are enforced through law enforcement. The trading plan is a document outlining the trading operations of a specific area. It is particularly required in areas where there is overlap between various stakeholders. This plan, once approved, is adopted by the City to govern the informal trading within the stipulated area.

In regulating the trading area, there are a few key employees/contractors of the City who manage the informal trading spaces. These include the area co-ordinator, compliance officer, the law enforcement officer, and a market manager or precinct co-ordinator (where applicable), and environmental health officers.

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Designation

Role

Area co-ordinator

Management of their designated informal trading area in the following ways: Check Permit applications, registrations and cancellations Check Develop or revise trading plans when required Check Address challenges in their area Check Handling queries and concerns from informal traders and other stakeholders

Compliance officer (CO)

Ensures informal traders comply with the conditions of their trading permits and adhere to rules and regulations stipulated in the by-law

Law enforcement officer/unit

Mandated to issue section 56 informal trading related enforcement notices or fines.

Ensures that all by-laws are enforced as they relate to: Check Conduct Check Health and safety Check Trading in prohibited areas Check Issuing of warnings, fines and impounding of illegal goods

Market manager or precinct co-ordinator (when contracted by the City)

Their role may vary depending on the contractual agreement.

As such, their role can include the general operations of a market through: Check Co-ordinating role Check Stakeholder engagement Check Security Check Storage facilities Check Cleanliness of the area

Environmental health officer

Check Ensures the hygiene standards in the trading area are acceptable Check Issues business licences and Certificate of Acceptability to traders selling food

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STANDARD TRADING CONDITIONS The standard trading conditions below are also outlined behind your permit. These 18 conditions summarise the Informal Trading By-law of 2009 as amended in 2013. It covers the permit, permit holder responsibilities, and the powers of the City.

1.

he permit is issued subject to the provisions of the Informal Trading By-law Provincial Notice T 6677 dated 20 November 2009.

2.

he holder of the permit shall personally operate and be present at the site during trading T hours. A person may assist the permit holder at the site in their absence, and the requisite identification of the respective assistant must be advised to the City of Cape Town.

3.

he permit is only issued to the permit holder upon proof of identity and is not transferable T unless otherwise authorised by the City of Cape Town (refer transferal of permit).

4.

he permit or an original certified copy of the permit shall be available at the site at all times T and shall be produced upon demand to any law enforcement officer of the City of Cape Town.

5.

he City of Cape Town shall have rights to order the holder of the permit to temporarily cease T trading from the informal trading bay in the event of it having to accommodate street parades/ events of a similar nature or any road works, without any compensation.1

6.

he trading site shall not be used as a distributing point for goods (stocks of whatever T commodity) for the purpose of resale.

7.

he City of Cape Town reserves the right to summarily cancel a permit without payment T of compensation in the event of the permit holder having provided false information in support of their application.2

8.

he permit shall automatically cease on the expiry date and the permit holder shall be required T to vacate the informal trading bay on this date, unless they are in possession of a valid permit authorising continued occupation of the site.

9.

nly the products which have been stipulated on the application form may be permitted O on the trading bay, unless otherwise authorised by the City of Cape Town.

10. Monthly payment of permit fees shall be made at the City of Cape Town (refer to payments).3

FOOTNOTES: 1 Traders affected by the event can approach the event organiser to trade within the event footprint. The City will encourage trading in areas surrounding the event, where possible.

2 The same conditions apply when a trader has failed to update the information annually, and as and when required.

3 Council will reserve the right to withdraw summarily the allocation of a bay in the event of evidence proving that a trader is behind on payment of the permit fees (for two consecutive months).

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11. N ot more than two persons shall manage the trading site at any one time, except with the prior permission of the City of Cape Town.

12. No structure other than as stipulated in the relevant trading area plan and/or permit conditions.

13. Only goods of legal nature whatsoever shall be permitted for sale by the permit holder.

14.

At the daily conclusion of trading, remove all waste, packaging material, stock and equipment of whatsoever nature which are utilised in connection with your business.

15.

The City of Cape Town reserves the right to amend the foregoing conditions of permit whenever it becomes necessary.

16.

This permit is issued on the basis that the applicant certifies that they are not an unsuitable person to carry on lawful business at the allocated site, whether by reason of their character, having regard to any conviction recorded against them, their previous conduct or for any reason.

In the event that the City of Cape Town receives credible information on affidavit that such undertaking is false, it reserves the right to cancel any permit issued, without compensation being paid.

17.

Anti-social and other unruly behaviour will be viewed as misconduct and could result in a warning suspension for a specified period or the total withdrawal of their trading permit or concession to trade.

18.

The permit holder may not transfer a permit to any other person in any manner, including, but not limited to, by way of lease or sale.4

Events include sporting fixtures, concerts and national state events.

PLEASE NOTE

When the City permits special events, full right is granted to the event organisers to manage the entire event. In turn, the event organisers accept full liability for all risks. Therefore, trade is revoked during this period. The City, however, encourages the event organisers to accommodate trading where feasible.

See section 14 of the Informal Trading By-laws.

4 Council will reserve the right to withdraw summarily the allocation of a bay in the event of evidence proving that a trader, who is allocated a bay, has sublet or sold such a bay to a third party without the approval of Council.

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IMPORTANT BY-LAWS There are certain instances where contravening by-laws would mean that law enforcement would be deployed. For more information, see section 18 of the Informal Trading By-law of 2009 as amended in 2013.

WRITTEN WARNING A written warning may be issued when permit conditions, the Informal Trading By-law or any other City by-law has been breached. A law enforcement officer or any authorised official of the CCT can give you a written warning.

IMPOUNDMENT Please be aware that a law enforcement officer may provide written warnings should traders be found to transgress. If two written warnings have already been issued, then the officer may impound any property, including structures, used by the informal trader in conducting their trade.

Remember, if your goods are being impounded, the law enforcement officer must: Check Complete a full list of everything being impounded and hand the trader a copy of the list Check Include information on consequences of the impoundment in the inventory list should the trader fail to pay the costs of impoundment Check Immediately store the impounded goods at a property designated by the City for storage of impounded goods

Perishable goods can be sold or disposed of by the City.

The City can also destroy goods if they are unfit for human consumption.

Non-perishable foods can be sold by the City if the owner does not or is unable to pay the impoundment costs within one month.

PLEASE NOTE

If your impounded goods are sold by the City and an inventory is presented by the owner, the City must pay the owner: 1. The remainder of the proceeds once the impoundment costs have been settled.

2. The full proceeds, if the impoundments have already been paid.

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FINES You can receive fines up to R5 000 for the following reasons: Check Breaching the permit conditions Check Contravening the Informal Trading By-law Check Giving an officer or a City employee false information Check Threatening, resisting, interfering with, or obstructing an officer or City employee when they are carrying out their official duties in terms of the Informal Trading By-law

CONFISCATION OF ILLEGAL GOODS If a law enforcement officer finds that a trader is trading in illegal goods or their supplier is supplying the trader with illegal goods, then the officer may immediately confiscate the goods.

In this case, the law enforcement officer must: Check Complete a full inventory of confiscated goods Check Provide a copy of the inventory to the informal trader or person in contravention of section 12.6 Check Immediately hand over the goods to the South African Police Service (SAPS)

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APPEALS A person, whose rights are affected by a decision taken by the City under a duty or power, which has been delegated or sub-delegated, may appeal against that decision in terms of section 62 of the Municipal Systems Act of 2000: 1.

person whose rights are affected by a decision taken by a political structure, political office A bearer, councillor or staff member of a municipality in terms of a power or duty delegated or sub-delegated by a delegating authority to the political structure, political office bearer, councillor or staff member, may appeal against that decision by giving written notice of the appeal and reasons to the municipal manager within 21 days of the date of the notification of the decision.

2. The municipal manager must promptly submit the appeal to the appropriate appeal authority mentioned in subsection 4.

3.

he appeal authority must consider the appeal and confirm, vary or revoke the decision, T but no such variation or revocation of a decision may detract from any rights that may have accrued as a result of the decision.

4.

When the appeal is against a decision taken by:

a. A staff member other than the municipal manager, the municipal manager is the appeal authority;

b. The municipal manager, the executive committee or executive mayor is the appeal authority, or, if the municipality does not have an executive committee or executive mayor, the council of the municipality is the appeal authority; or

c.

A political structure or political office bearer, or a councillor i. The municipal council is the appeal authority where the council comprises less than 15 councillors; or ii. A committee of councillors who were not involved in the decision and appointed by the municipal council for this purpose is the appeal authority where the council comprises more than 14 councillors.

5. An appeal authority must commence with an appeal within six weeks and decide the appeal within a reasonable period.

6. The provisions of this section do not detract from any appropriate appeal procedure provided for in any other applicable law.

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INFORMAL TRADING INFORMATION This section provides tips and guides, and deals with some important questions that new traders may have.

PAYMENTS As a newly permitted informal trader, you are responsible to pay for your permit by the first of the month. Tariffs range from R80–R1 500 per month. This is reviewed by the first of July every year.

Remember, the City may charge an additional fee or tariff at its sole discretion, where additional costs or services are provided by the City of Cape Town.

The City uses the informal trading permitting system (ITPS) to track and monitor the accounts of all the permitted traders. On a monthly basis, the system is able to generate a report of all traders who are in arrears.

There are consequences for not paying your permit. The consequences increase the longer you delay the payment, and may result in a revoked permit. The process is as follows: 1. After 1 month the City will send out an SMS reminding you to make your payment.

2. After 2 months you will receive a soft revoke. This means that you will need to contact your area co-ordinator to reinstate your permit.

3. After 6 months you will receive a hard revoke. This means that your permit will be cancelled and you will not be able to trade in your bay.

If an individual is unable to pay trading fees, application fees or additional fees/tariffs, they can motivate through: Check Writing a letter Check Providing proof

PLEASE NOTE

The request will be reviewed and, if satisfied, the City will provide a way forward. For more information, please refer to section 8.3 of the Informal Trading By-laws.

Please send this information to your area co-ordinator (AC).

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COMMODITIES (PRODUCTS AND SERVICES) A permitted trader is allowed to trade in various types of commodities (i.e. products and services).

These commodities should be lawful.

There are instances when one may need to go to a relevant department for additional permits/ documentation for selling certain commodities. For instance, selling prepared food would require a Certificate of Acceptability (COA). This certificate is provided by the Department of Environmental Health. The COA indicates that food being sold is in line with the recommended Environmental Health guidelines.

AMENDMENTS TO COMMODITIES Changes can be made to your commodities should you wish to sell other goods.

To begin this process, you will need to: Check Make an appointment with your AC to discuss this. Thereafter, if it is in order, your commodities will be changed Check Indicate and provide your current address and contact details

TIP

To safeguard yourself, ensure that what you sell at your bay is stipulated on your permit, along with additional documentation if necessary.

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ADDING AN ASSISTANT As a permit holder, you may add an assistant should you require one.

This can be done by making an appointment with your AC. On your appointment date, bring along your intended assistant and the following certified documentation: Check Assistant’s unemployment status affidavit Check Assistant’s South African ID/work permit in the case of a non-South African Check Assistant’s proof of address or affidavit indicating address

TIP

AED staff are available at satellite offices once or twice a week to offer support or assistance.

Please contact your relevant AED to find out when and where they assist traders.

TRANSFERRING A PERMIT A permit may be transferred permanently or temporarily with written approval from the City.

The following circumstances may warrant a transfer of the permit to a family member or assistant: 1. Death of master trader – where the inability to trade would place undue hardship on the family of the master trader, permission may be granted to another family member/assistant trader to continue trading until the end of the trading period as stipulated on the permit for the bay.

In this instance, the following is required:

Check

A death certificate to be provided to the AC

2. Personal reasons; such as, illness, pregnancy, family responsibility, religious or cultural matters, or any other personal matter, provided it is for a period no longer than six months, and provided that:

Check

Check

roof from a medical practitioner is provided to the City which certifies that the P permit holder is unable to trade A written affidavit is provided to the City stating the nature and period for which the permit holder requires the permit transfer

3. If the master trader or their family chooses not to make application for special consideration as outlined above, the permit for the bay must be returned to the City.

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CAPACITY BUILDING AND STRATEGIC SUPPORT Part of the AED’s role is to provide trader support through creating an environment which promotes economic growth, creates economic opportunities, provides skills development, supports development of informal trading associations and leadership.

To achieve this, the City engages with traders through various means which include: workshops, Micro-Enterprise Support and Development programmes (MESDs), trading associations, Round Tables (RT), annual summit with the informal economy and public participation sessions. Your area co-ordinator will inform you of any applicable sessions near you.

WORKSHOPS AND MICRO-ENTERPRISE SUPPORT AND DEVELOPMENT PROGRAMMES Workshops are provided to traders on various topics throughout/within each financial year.

A workshop is a platform used to provide traders with information and training that they may need.

They usually occur once a quarter.

Micro-Enterprise Support and Development programmes are used to provide education and support.

TIP

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When attending workshops and MESDs, always sign the register and indicate whether you would like to attend more workshops. Also provide us with your latest contact details.

Feel free to indicate some key topics you would like to see in the next workshop.

TRADING ASSOCIATIONS AND ROUND TABLES Informal traders are encouraged to join a trading association. This is the most effective and efficient manner in which the City can engage with traders’ concerns.

A Round Table (RT) is a platform used by the City to engage with informal traders to identify and address specific issues and challenges in a specific area. These are usually held bimonthly.

PUBLIC PARTICIPATION Public participation is a process where relevant departments will consult with affected individuals and interested people before making a decision. Comments can be sent to relevant departments, subcouncil offices or via the online platform ‘Have Your Say’ when these events are held.

MOVING TO FORMALISE YOUR BUSINESS Should you wish to move beyond informal trading to grow your business further, the City’s Business Hub can help in a number of ways, such as through business partner networks, development programmes, guidance on business processes and more (see contact list on page 37).

The City has various other partners which can help in this regard. Please see the contact details at the end of the manual.

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CONTACT DETAILS AREA ECONOMIC DEVELOPMENT Branch

Address

Contact

North

44 Wale Street, Cape Town

021 400 5379

East

Block C, Stocks & Stocks, Khayelitsha

021 400 1345 021 360 1243

Central

Goodwood Administrative Building, Corner of Voortrekker and De Villiers roads, Goodwood

021 400 3131 (option 6) informal.economy@capetown.gov.za

South

Plumstead Municipal Office, Corner of Victoria and Main roads, Plumstead

021 400 2808

Informal trading website

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https://bit.ly/3liFvgd

ENVIRONMENTAL HEALTH Environmental Health Offices

Address

Telephone number

Durbanville

Corner of Oxford and Queen streets, Durbanville

021 444 0734

Kraaifontein

Brighton Road, Kraaifontein

021 444 6738

Maitland

Berkley Road Complex, Maitland

021 444 1718

Milnerton

Bridal Way, Royal Ascot, Milnerton

021 444 5648

Media City

Hertzog Boulevard, Cape Town

021 400 6513 / 021 400 6489

Kuils River

Van Riebeeck Street, Kuilsriver

021 400 2609

Strand

Corner of Main and Fagan streets, Strand

021 444 4818

Khayelitsha

50A Ncumo Road, Khayelitsha

021 444 2350 / 021 444 2339

Silvertown

16 Petunia Street, Silvertown, Athlone

021 444 6636

Fezeka

Corner of Steve Biko and Govan Mbeki roads, Gugulethu

021 444 5429

Bellville

7A Midmar Street, Groenvallei

021 400 6110

Parow

23 Klosser Street, Parow

021 444 0851

Mitchells Plain

Simonsig Avenue, Westridge

021 400 4077

Nyanga

Nyanga Training Centre, Corner of New Eisleben and Old Klipfontein roads, Nyanga/Crossroads

021 400 5747

Plumstead

3 Victoria Road, Plumstead

021 444 3282

Wynberg

Lower Maynard Road, Wynberg

021 400 6367

Lakeside

1 Bogey Road, Lakeside

021 444 1653

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LAW ENFORCEMENT 24-Hour services

Telephone

Email

General enquiries/Informal Trading Unit

021 596 1999

lawenforcement@capetown.gov.za

Law Enforcement website

https://bit.ly/3d5tec4

LAND USE AND ZONING Department

Telephone

Website

Development Management Department

0860 103 089

https://bit.ly/33vAGdc

RECREATION AND PARKS Telephone Enquiries

021 400 2013

After hours

021 425 2685

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Email rp.enquiries@capetown.gov.za

OTHER BUSINESS SUPPORT Company

Email address/website link business.support@capetown.gov.za

Business Hub

https://bit.ly/3ndFhIS

BizPortal

https://www.bizportal.gov.za Cape Town

Seda

Atlantis Khayelitsha

The Craft and Design Institute (CDI)

The Cape Town Fashion Council (CTFC) Jump for entrepreneurs

021 417 4043 0861 002 472 021 487 3660

http://www.seda.org.za

Bellville Small Enterprise Finance Agency (sefa)

Contact details

021 577 1045 021 361 1360 021 949 2227

sefawc@sefa.org.za http://www.sefa.org.za info@thecdi.org.za www.thecdi.org.za info@ctfc.co.za visit www.ctfc.co.za

021 418 0126

021 461 1488

078 357 3865

Download app: www.bizjump.co.za

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