Impact of street food vending on poverty and unemployment in the Mahikeng Local Municipality

Abstract

The main objective of this research is to investigate the impact of street food vending on poverty, livelihoods and unemployment in the Mahikeng Local Municipality (MLM). In addition, the study describes the socio-economic profiles of street food vendors, challenges and types of food sold. Street food vending has been identified as a cornerstone of socio-economic development in the world in general and South Africa in particular. Nevertheless, very little research has been conducted in the MLM focusing primarily on the impact of street food vending on poverty, livelihoods and poverty. This study therefore, supplements existing knowledge by concentrating on the impact of street food vending in the area. To achieve the above objectives, the study utilized both quantitative and qualitative research methods. In addition, structured questionnaires were used to collect data from individual respondents while focus group discussions were held using semi-structured questionnaire. Unstructured questionnaires also were employed to collect information from the key informants. The finding demonstrates that street food vending generates income, employment, food security, good health, education, taxes, housing and skills in the MLM. These were very instrumental in promoting livelihoods and poverty reduction in the area. Street food sector also plays a crucial role in promoting socio-economic status of vendors in the area. Some vendors were able to acquire assets such as livestock and landed property from the profit made from the business that contributed to poverty reduction among vendors in the MLM. However, the street food sector is plagued with challenges such as lack of working capital and credit, competition, harassment and confiscation of food items and utensils, listeria contamination, street vending policy and lack of infrastructure. These challenges reduce profit made and hinder the growth of the business, livelihoods and poverty reduction among vendors in the area. The study recommended that other stakeholders and the government of South Africa should ensure that vendors in the MLM should be provided with soft bank loans and/or credit. The local authorities and government should design a helpful policy and legislative framework that promote and provide an appropriate atmosphere for earning livelihoods through street food vending.