Hon Chairperson, whilst the department's core strategy is the promotion of industrial development, and this the ACDP definitely supports, I wish to focus on the informal sector today.
We all know that the informal sector contributes more than 3 million jobs to the South African economy, and this number includes street traders, shoe repairers, hair salons, dressmaking businesses, spaza shops and retailers. There are many others. The majority of street traders in South Africa are women who trade in a range of goods, including sweets, Nik Naks, clothing, and fruit and vegetables.
Despite its relatively modest appearance, street trading is one of the largest sectors of the informal economy. It is interesting that the City of Durban has acknowledged this. They estimate that the value of the sale of cooked green mealies on the street is in the region of R1 million per month. This is very significant.
There are a number of bylaws that must be complied with, such as the registration of formal businesses, trading in legal spaces, and complying with tax regulations. The ACDP questions the wisdom of the additional licensing requirement proposed in the Licensing of Businesses Bill. We also question the capacity of municipalities not only to issue these licences', but also to keep a register of every business, including informal street traders, in their jurisdiction. One can rest assured that bribery and corruption would be the order of the day to obtain or renew these licences. This is a serious concern that we need to deliberate upon.
This Bill will empower every police and traffic officer, as well as a host of other municipal officials, to be licence inspectors with far-reaching powers of search, seizure and issuing of fines. The maximum penalty for operating a business, such as selling mealies on the side of the road, without a valid licence will be 10 years. How are our overstretched criminal courts going to deal with this additional burden? We believe that this needs to be reassessed. Thank you. [Time expired.]