and Governance in the Informal Sector of Urban South Africa: An Analysis of Jurisdictional Disruptions and Compliance Patterns

The informal sector in urban South Africa is a significant component of its economy, comprising around 40% of total employment and contributing approximately 18% to GDP. The study employs a qualitative approach involving interviews with key informants from different sectors of the urban economy in South Africa’s major cities. Interviews revealed that jurisdictional conflicts between municipal departments often result in delays or non-enforcement of regulations, particularly concerning health and safety standards. Despite these challenges, businesses within the informal sector exhibit compliance behaviors influenced by economic necessity and the potential for profit despite legal restrictions. Local authorities should implement more streamlined regulatory processes to reduce jurisdictional conflicts and improve enforcement efficiency in the urban informal sector.