Street traders across Cape Town are set to benefit from one of the city’s biggest informal trading expansions in recent years after the City Council approved plans for nearly 700 new trading bays, reports Cape {town} Etc.
Image used for illustrative purposes/Lauren Boswell/Pexels
The decision, approved during Wednesday’s council meeting, will create 693 additional trading opportunities across several parts of the metro, including the CBD, Bo-Kaap, Atlantis, Eerste River, Durbanville and Hanover Park.
For many Capetonians trying to survive a tough economy, the move is more than just a policy update. It represents access to income, visibility and a chance to build small businesses in a city where unemployment remains one of the biggest social pressures.
The expansion adds to the more than 6 000 trading bays already operating across Cape Town.
A growing informal economy in a struggling job market
In many communities, informal trading has become a lifeline. From fruit sellers outside taxi ranks to food vendors operating near transport hubs, thousands of residents rely on street trading to support families and pay rent.
The newly approved plans cover popular trading areas such as Greenmarket Square, St George’s Mall and the Company’s Garden precinct, all known for attracting both locals and tourists.
The City says the aim is to create safer and more organised trading spaces while giving entrepreneurs better access to high-footfall areas.
Mayoral Committee Member for Economic Growth, Alderman James Vos, described the approval as a major milestone for inclusive economic growth in Cape Town.
According to Vos, the plans are designed to balance regulation with support for traders while improving the overall experience for customers and visitors.
Mixed reactions from residents and traders
Reaction online has been largely positive, with many residents welcoming the move as a practical response to unemployment and rising living costs.
Some social media users praised the City for recognising the importance of small-scale entrepreneurship instead of focusing only on large investors and corporations.
Others, however, questioned whether the City would ensure fair permit allocation and prevent corruption or overcrowding in already busy areas.
There have also been ongoing concerns around trading conditions in certain parts of the CBD, particularly around sanitation, storage facilities and law enforcement operations.
These debates are not new.
Cape Town’s relationship with informal traders has often been tense over the years, especially during previous crackdowns on unpermitted trading in the inner city. Trader organisations have repeatedly called for better communication, clearer rules and more dignity for people working in public spaces.
More markets planned for township communities
The latest approvals come as the City continues planning new market infrastructure in areas including Mitchells Plain, Masiphumelele and Wallacedene.
Officials believe upgraded trading environments could improve safety, attract more customers and help small businesses grow beyond survival mode.
The City is also reviewing its Informal Trading Policy, which guides how street trading is regulated throughout Cape Town.
Interestingly, officials have already begun consulting recognised trader associations before the formal public participation process begins later this year – a move some traders view as a positive step toward better cooperation.
The revised policy is expected to focus on:
- Fairer permit systems
- Better infrastructure and services
- Skills development and business support
- Stronger trader representation
- Improved coordination between traders, businesses and law enforcement
Trafalgar Flower Market still under review
One notable exclusion from the latest approval process is the Trafalgar Place Flower Market.
The City says a separate trading plan is still being drafted for the historic flower trading site following feedback from traders during recent consultations.
The Trafalgar market has long been regarded as one of Cape Town’s cultural trading landmarks, with generations of flower sellers operating in the area.
Officials say more engagement is needed before final decisions are made about the future design and management of the space.
How traders can apply
Residents interested in securing one of the new bays will need to register through the City’s e-services platform and activate the Informal Trading Bay service.
Applicants will need:
- A South African ID number
- Their business partner number from a municipal account
- A scanned copy of their ID
- A personal email address
The City also says traders can access free training and support programmes through its Business Hub initiative.
While challenges remain around regulation, space management and economic pressures, many traders are hopeful the latest expansion signals a shift toward greater recognition of informal businesses as a permanent and important part of Cape Town’s economy.
Article by Hope Makhoba for Cape ETC
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