Johannesburg Informal Traders Face Financial Ruin Amid Chaotic Permit Backlogs and Legal Disputes

Hundreds of Johannesburg street vendors face financial hardship as the city fails to allocate trading spaces following a 2025 court order. Read more on GroundUp.

By: AXL Media

Published: Apr 23, 2026, 8:02 AM EDT

Source: Information for this report was sourced from GroundUp

The Growing Crisis of Informal Commerce

The streets of Johannesburg’s city center have become a theater of economic desperation as informal traders battle a stalled permit system. Since October 2025, the City of Johannesburg has executed a wide scale removal of vendors, citing non compliance with local trading bylaws. However, these actions have left veteran sellers like Rose Mhlanga, who has operated her stall for 30 years, without a reliable means to support her family. The resulting vacuum has forced many into a precarious cycle of returning to unallocated spaces only to face further law enforcement action.

Legal Mandates and the Failure of Verification

In response to the initial evictions, the Socio Economic Rights Institute launched a legal challenge on behalf of the displaced workers. The Gauteng High Court subsequently ordered the municipality to conduct a formal verification and allocation process by November 18, 2025. Despite this judicial intervention, the South African Informal Traders Forum reports that the rollout has been marred by confusion. Many individuals who previously held valid smart card permits were removed from long standing locations without prior notice, a move described by activists as a violation of the Businesses Act.

The Cat and Mouse Reality on City Streets

For many traders, the delay in permit issuance is not merely an administrative hurdle but a threat to basic survival. Agripa Bongumusa Buthelezi, a vendor of cellphone accessories for over a decade, described the current environment as a constant game of cat and mouse with the Johannesburg Metro Police Department. Even after completing verification and receiving new permits, some traders find themselves still being chased from their sites. Authorities frequently claim these vendors are operating in undesignated areas, leaving them to survive hand to mouth.