Daily DispatchDaily Dispatch

INSIGHT | It’s time to invest in future of Dikeni’s informal traders

SA’s constitution recognises the right to choose a trade and ties that directly to human dignity, yet the lived reality of informal traders in Dikeni does not fully reflect this principle.
Informal traders SA’s constitution recognises the right to choose a trade and ties that directly to human dignity, yet the lived reality of informal traders in Dikeni does not fully reflect this principle.Picture: Mmatumelo Lebjane

On any ordinary day in Dikeni, the local economy does not unfold in offices or policy documents, it lives in the open.

It is visible along roadside pavements, at taxi ranks, and in public spaces where traders stand under the sun, in the wind and in the rain, selling fruit, cooked food, household goods and traditional products. This is not a recent phenomenon.

Dikeni [formerly Alice] traces its origins back to 1824 as a mission settlement, and from the earliest days of its existence, black traders have been part of its economic fabric, sustaining livelihoods in a system that has rarely supported them in return.

Yet what stands out is not just their presence, but the conditions under which they have continued to operate.

Through colonial rule, apartheid, and now more than three decades of democracy, the daily realities for many informal traders in Dikeni remain largely unchanged.

They continue to trade without proper shelter, without access to electricity or clean water, without adequate sanitation and without safe storage facilities.

While the political system has changed, the trading environment for many has not kept pace with the promises of transformation.

This disconnect becomes even more stark when placed alongside the broader economic picture.

By the fourth quarter of 2025, SA had about 17.1-million employed people, with about 21.4% of those working in the informal sector.

Informal trade is therefore not marginal, it represents millions of livelihoods and remains one of the largest sources of employment in a country facing persistent unemployment and inequality.

Nationally, it is a sector that absorbs those excluded from the formal economy, and in towns like Dikeni, it becomes the very foundation upon which economic survival is built.

In practical terms, informal traders do far more than generate income for themselves.

They are central to the functioning of local economies.

They provide affordable goods, particularly food, to communities that rely on accessible and low-cost sources of supply.

Research has consistently shown that informal food traders play a significant role in food security, especially for low-income households who depend on daily access to fresh produce and prepared meals.

In a rural town such as Dikeni, where large retail infrastructure is limited and distances affect access, these traders are often the most reliable link between households and essential goods.

Despite this role, the structural challenges faced by informal traders remain deeply entrenched.

Studies across SA point to consistent barriers: lack of trading space, poor sanitation, limited access to services, exposure to extreme weather conditions and minimal access to financial support.

These are not isolated issues, they are systemic.

Without proper infrastructure, traders are forced to operate in unsafe and unhygienic environments that not only undermine their ability to grow their businesses but also affect public health and urban order.

At its core, this is not only an economic issue but a question of dignity.

SA’s constitution recognises the right to choose a trade and ties that directly to human dignity, yet the lived reality of informal traders in Dikeni does not fully reflect this principle.

When people are expected to work long hours in harsh weather without basic protection or services, it reflects a broader failure to align policy commitments with lived experience.

The wider economic implications are significant.

Informal trade is embedded within township and rural economies, which themselves represent a substantial segment of economic activity in SA.

The township economy alone has been estimated at more than R900bn annually, highlighting its scale and contribution.

When infrastructure is lacking, it is not only traders who are affected, the entire local economy loses potential for growth, stability and job creation.

Dikeni reflects this reality in its most visible form.

The economy is already there, active, resilient and deeply embedded in community life.

What is missing is the infrastructure and policy support needed to unlock its full potential.

The traders are not starting from nothing; they are working daily to sustain economic activity.

The failure lies in not providing an environment that supports and protects that activity.

A practical solution lies in recognising and building for the economy that already exists.

The town requires a structured, purpose-built marketplace for informal traders, a secure and organised trading space that provides shelter from extreme heat, protection against cold conditions and cover during heavy rains.

Such a space should include access to clean water, sanitation facilities, electricity, waste management systems and designated trading areas that allow businesses to operate safely and expand over time.

This is not simply about infrastructure; it is about restoring dignity and correcting a long-standing imbalance.

Black traders have been part of Dikeni’s economy since its establishment, yet their working conditions have never been meaningfully transformed.

Creating a marketplace would signal a shift, from tolerance of informal trade to active support of it as a legitimate and essential component of the local economy.

The responsibility to take this step rests with the Raymond Mhlaba municipality.

The municipality must identify appropriate land within or near the town and commit to developing a marketplace that reflects the real needs of its people.

This would not only improve working conditions for traders but also enhance public order, stimulate local economic activity and strengthen food systems within the community.

For generations, the informal traders of Dikeni have sustained livelihoods, supported families and kept the economy moving in the absence of formal opportunity.

They have carried the town’s economy in the streets.

What is now required is a deliberate decision to recognise their contribution and invest in their future.

Because the economy of Dikeni is already alive, it is time it is properly supported.

Siphiwo Fumbeza is a former chair of the Sheshegu Development Forum. He writes in his personal capacity.