Informal economy faces uphill battle post lockdown - analyst
A financial analyst says it's going to be hard for the informal economy to bounce back when the coronavirus lockdown's over, adding that the sector has taken a major economic hit.
"All sectors are not equal and the impact on this sector has been quite difficult for them to absorb," says Durban-based analyst Randall Singh.
Singh says informal trading plays an important role in the South African economy by creating job opportunities and helping to alleviate poverty.
This week, President Cyril Ramaphosa announced a loan package to help keep SMMEs, spaza shops and informal businesses afloat.
He said an additional R2 billion would be made available to assist them.
Singh says, unfortunately, most informal traders won't qualify for the relief fund.
He says government should be thinking about an emergency fund to help the informal sector.
"This is a cash-intensive business where traders generally live on a day-to-day basis. They would feel the impact of this panic quite difficult."
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