Linking inclusive green growth and the informal economy : relationship between small-scale farming and informal vending in South Africa

Abstract

With help from international agencies like the World Bank and OECD, the 'inclusive green growth' agenda has entered many national development plans since the 2012 UN Conference on Sustainable Development. It is difficult to envision a model of an inclusive green economy without some overlapping elements with the informal economy, which supports about two-thirds of the world's labor. And yet, there has been sparse discussion and empirical evidence on the linkages between the two. In order to investigate some aspects of this relationship and test the hypothesis that informal economic activities can contribute towards achieving inclusive green growth in developing countries, this research combines a literature overview with an exploratory case study on fresh produce vending at Warwick Junction (Durban, South Africa), all with a particular focus on how urban informal markets can provide and expand business opportunities for small-scale farmers in the region. While the majority of the fresh produce vendors at Warwick Junction relies on formal producers and distribution centers, the purposive stratified sampling methodology in this study led to the identification of several cases in which vendors work directly with family-operated farms or loosely organized community cooperatives in neighboring towns. The results highlight examples of symbiotic linkages in this overlooked local food system that can increase employment opportunities and lower growth barriers for emergent farmers, who are important actors in developing a green economy based on sustainable agriculture practices. Lastly, findings are translated into recommendations for the eThekwini Municipality to act within the recently authorized Inner-City Local Area Plan, which offers guidelines for more inclusive and sustainable urban regeneration in the city of Durban.