The Path to Legitimacy and the

Abstract

For almost a century, informal traders and the local government in Johannesburg have debated policies regulating the informal sector. Initial policies severely restricted the sector by imposing strict criteria for operating businesses, but after 1994 special development programmes were created by a new, democratic local government. However, the informal sector claims these programmes do not create economically viable opportunities. A major finding of this research is that the informal sector has the potential to operate efficient businesses, but is constrained by overly restrictive by-laws; lack of business skills; and access to financial assistance. It is recommended that the city develops a comprehensive management plan that provides skills training; access to capital; and restructuring of the by-laws. In addition, an independent monitoring body should be appointed to oversee the plan