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GA Ekobi E) Orcid.Org/0000-0002-7674-4095 Impact of street food vending on poverty and unemployment in the Mahikeng Local Municipality GA Ekobi E) orcid.org/0000-0002-7674-4095 Thesis submitted in fulfilment of the requirements for the degree Doctor of Philosophy in Development Studies at the North-West University LIBRARY MAFIKENG CAMPUS CALL NO.: 2020 -01- 0 6 Promoter: Prof BC Chikulo Co-promoter: Prof T Monaheng ACC.NO.: " NORTH-WEST UNIVERSITY Graduation ceremony: October 2019 Student number: 23122382 DECLARATION BY CANDIDATE I, GABRIEL ACHA EKOBI, declare that this thesis is my own work for the PhD Degree in Development Studies at the North West University where it is hereby submitted, and that, to the best of my knowledge, it has never been submitted by me or anyone else for a degree at this or any other university or for another quali fication. Materials and sources cited from other people in this thesis have been correctly acknowledged by means of complete references. Signed on this ... ........ .... day of. ..... ..... ...... ....... .... 2019 at ... ...... .. ..... ... .... .... .... ... .... Signature ............... .. ..... DEDICATION This study is dedicated to my late parents David Acha, Emi li a Mokosso and Lucas Nwatiagbo. In addition, it is dedicated to my wife and son, Lovelyne Mboh and Gare! Ekobi, for supporting me psychologically and emotionally and for their motivation and advice throughout my study period. God bless you all. ii ACKNOWLEDGMENT I wish to express my profound gratitude to my author, the ALMIGHTY GOD, for givin g me strength, guidance and courage and for seeing me through this period of my studies. My special thanks go to Professor T. Monaheng for his guidance and invaluable comments that helped in enriching this thesis; for his encouraging me through this period; and for his reading through and correcting my scripts. In addition, sincere thanks go to my co-supervisor, Professor B.C. Chikulo (Late), whom I hold in hi gh regard. I thank you for your fatherly guidance, patience, understandin g and advice in elevating this study. My warm gratitude also goes to the Department of Development Studies and to the entire Faculty of Humanities for the support given me during this research. Sincere thanks to Mr G. Mpolokeng, the Head of Development Studies and Professor P. !ya whose assistance is highly commended. In addition, Professor Martin Phalamuleni of Population studies is hi ghly applauded and wholeheartedly thanked for his support for the success of this study. Special thanks go to the Council of the Development of Social Science Research in Africa for their contribution to this study. The same sentiments are accorded to Dr Ken Machila for his scholarly and brotherly concern. Many thanks also go to those whom I had the opportunity to interview for their commitment and sharing of experiences that enriched this stud y, especially officials from the Department of Economic Development and Tourism, Mahikeng Local Municipality (MLM) and Small Enterprise Development Agency. Also, commended are the officials of the Department of Trade and Industry, Local Economy Development, Environmental Health Practitioner and street food vendors in the MLM for their contribution. Furthermore, I would like to thank all my friends, especially Mbeng J, Vakai Matutu and Fabrice Tambe Endo for their help during my studies. I would also like to express my appreciation to my wife Lovelyne Mboh, my sister, Vivian N, my Brother, Emmanuel, 0. and my son Gare! Ekobi Acha. Although some of them live far from me, I always felt their encouragement throughout my studies. iii ABSTRACT The main objective of this research is to investigate the impact of street foodvending on poverty, livelihoods and unemployment in the Mahikeng Local Municipality (MLM). In addition, the study describes the socio-economic profiles of street foodvendors, challenges and types of food sold. Street food vending has been identified as a cornerstoneof 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 foodvending generates income, employment, foodsecurity, 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 fromthe profitmade 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 earninglivelihoods through street foodvending. KEY WORDS: Informal sector, livelihoods, small medium enterprise, street food vending, poverty, unemployment iv TABLE OF CONTENTS DECLARATION BY CANDIDA TE DEDICATION II ACKNOWLEDGMENT iii ABSTRACT iv TABLE OF CONTENTS V LIST OF TABLES X LIST OF FIGURES xi LIST OF NON-ENGLISH WORDS XIII LIST OF ACRONYMS XIII CHAPTER ONE: INTRODUCTION TO THE STUDY 1.1 BACKGROUND 1.1.1 The informal sector l 1.1.2 Street food vending global picture 3 1.1.3 Street food vending in Africa 3 1.1.4 Street food vending in South Africa 5 1.2 PROBLEM STA TEMENT 10 1.2.1 Research questions 12 1.3 AIM AND OBJECTIVES OF THE STUDY 12 1.3.1 The Specific objectives 12 1.4 RATIONALE OF THE STUDY 12 1.4 ORGANISATION OF THE STUDY 14 CHAPTER TWO: DEFINITION OF CONCEPTS AND LITERATURE REVIEW 16 2.1 INTRODUCTION 16 2.2 DEFINITION OF KEY CONCEPTS 16 2.2.1 Development 16 2.2.2 Entrepreneur 19 2.2.3 Income 20 2.2.4 Informal sector 21 2.2.5 Livelihood 23 V 2.2.6 Small, medium and micro enterprises 24 2.2.7 Street food vending 26 2.2.8 Street vending 27 2.2.9 Poverty 29 2.2.10 Unemployment 30 2.3 rNFORMAL SECTOR AND DEVELOPMENT PROCESS 31 2.3.1 Informal sector contribution to GDP 31 2.3 .2 Job creation and poverty reduction 32 2.3.3 Income and poverty reduction 34 2.4 STREET FOOD VENDING AND DEVELOPMENT PROCESS 36 2.4.1 Employment, income and poverty reduction 36 2.4.3 Food security 41 2.5 LEGAL AND POLICY FRAMEWORKS IN SOUTH AFRICA 43 2.5.1 Hygiene and food safety 44 2.5.2 Licensing and registration 45 2.5.3 Participation and job creation 47 2.5.4 Technical and financial support 49 2.6 CHARACTERISTICS OF STREET FOOD VENDORS 51 2.7 TYPES OF FOOD SOLD 53 2.8 CHALLENGES FACED IN THE STREET FOOD SECTOR 55 2.8.1 Business location 56 2.8.2 Confiscation of food items 57 2.8.3 Street vending pol icy 58 2.8.4 Lack of skills and knowledge 59 2.8.5 High levels of crime 60 2.8.6 Difficult labour laws 61 2.8.7 Lack of credit and finance 63 2.8.8 Lack of infrastructure 64 2.8.9 Low level of research and development (R&D) 66 2.9 RESOLVING THE CHALLENGES lN STREET FOOD VENDING 67 2.10 THEORETICAL FRAMEWORK 69 2.10.1 The Dualist theory 69 2.10.2 The Legalist theory 71 vi 2.11 SUMMARY 72 CHAPTER THREE: RESEARCH METHODOLOGY 74 3.1 INTRODUCTION 74 3.2 METHODOLOGY 74 3.3 RESEARCH DESIGN 75 3.4 POPULATION OF THE STUDY 76 3.5 SAMPLE SIZE 77 3.6 SAMPLING PROCEDURE 79 3.6.1 Cluster sampling 79 3.6.2 Simple random sampling 79 3.7 DATA COLLECTION METHODS 81 3.7.1 Questionnaires 81 3.7.2 Focus group discussions 82 3.7.3 Secondary data 83 3.8 DATA ANALYSIS AND INTERPRETATION 84 3.8.1 Survey data 84 3.8.2 Focus groups discussions 84 3.8.3 Key informants interviews 85 3.8.4 Storage and management of data 85 3.9 RELIABILITY AND VALIDITY 86 3.10 ETHICAL CONSIDERATION 87 3.11 LIMlTATION OF THE STUDY 88 3.12 SUMMARY 88 CHAPTER FOUR: SOCIO-ECONOMIC PROFILE OF THE STUDY AREA 90 4.1 INTRODUCTION 90 4.2 GEOGRAPHICAL LOCATION OF MAHIKENG LOCAL MUNICIPALITY 90 4.2.1 Population size and distribution 93 4.2.2 Population by first language in the area 93 4.2.3 Marital status 95 4.2.4 Educational level 95 4.2.5 Employment level 96 4.2.6 Income level 98 4.2.7 Poverty 98 vii 4.2.8 Economic activity 99 4.2.9 Service provision 99 4.2.10 Food security 101 4.2.11 Hunger 102 4.3 STREET FOOD VENDING IN THE MAHIKENG LOCAL MUNICIPALITY 102 4.4 SUMMARY 106 CHAPTER FIVE: PRESENTATION AND ANALYSIS OF THE RESEARCH FINDINGS 108 5.1 INTRODUCTION 108 5.2 SOCIO-ECONOMIC PROFILES OF RESPONDENTS 108 5.2.1 Influence of socio-economic profiles on street vending 117 5.3 TYPES OF FOOD SOLD BY STREET FOOD VENDORS 121 5.3.1 The reason for selling particular types of food 125 5.4 STREET
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