Brett Hamilton on the value of the informal economy during lockdown…
Visiting lecturer in Corporate Finance at the University of Stellenbosch Business School and director of First River Capital, Hamilton says it is easy to assume that informal trade exists as a result of joblessness alone, but this does not consider its true value.
Usually these businesses, such as laundromats, flea markets and street vendors, operate in rural or informal areas, and are considered informal since they are rarely registered at national or regional levels, are cash-based, don’t pay taxes and usually do not have formal arrangements with employees.
Prior to last night’s presidential address on the Covid-19 stimulus package, Hamilton suggested the government consider short-term relief for the informal sector through funding and the removal of bureaucratic rigidity.Â
Brett Hamilton joins us on the line to discuss further…