Chapter 4: Presentation and Analysis of Primary Data
4.4 Officials’ perceptions and the realities of HBEs in Cato Crest
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63 Table 2: Table illustrating municipal officials’ knowledge of the types of businesses in Cato
Manor
TYPE OF
BUSINESS
PROJECT MANAGER
MANAGER HOUSING SUPPORT UNIT
MANAGER RESARCH AND POLICY
COMMUNITY LIAISON OFFICER
COUNCILLOR CATO MANOR ABM LED OFFICER Shack-lords
Spaza-Shop/
Tuck-Shop
Mr Phone/ Pay
Phones
Breweries/
Shebeens
Fruit and Vegetable Markets
Welders
Woodworkers
Plumbers
Bricklayers/
Builders
Block makers
Home-based
cooking
Sowing
Savings clubs
Street trading
Taxi-lords
Mechanics
Water collectors
Panel beaters
Electronic repairs
Car washers
Source: Own construct (2011).
64 From the interviews conducted with the officials, the top four known businesses in Cato Crest upgraded settlement are listed below in the order of the number of times they were mentioned by the officials. This information is used below to explain why HBEs are not accommodated into the upgrading plans of the municipality as a result of the officials’
knowledge of the types of HBEs.
i) Spaza/ tuck shops ii) Home-based cooking iii) Shack-lords
iv) Fruit and vegetable markets
All of the above mentioned businesses were operated using the house in informal settlements, which places them under the category of HBEs. However, when all the officials were asked whether they would encourage these types of HBEs, the upgrading Project Manager and Housing Support Unit Manager both stated that they did not want to see people renting out the housing units as shack-lords rented out informal settlements (number iii in the list). These two officials went as far as to state that they did not encourage the use of the upgraded house for income generation as they were trying to avoid shack- lords re-emerging in formalized settlements.
As a result, any home-based enterprise which the municipality was unable to exercise any form of control over was discouraged. The discouragement of HBEs, by the municipality was countered by an encouragement of households operating HBEs, by the municipality, to obtain road-side containers. However, road-side containers were expensive to purchase and this expense and other related expenses could have been avoided through the continued use of the house for income generation. In the upgraded settlement the households used their houses as storage space for the trading goods, and for safety reasons. The moving of these goods from the house to the container required unnecessary additional work by the households, which would have otherwise been avoided had they been using the house for trading space. Trading from within the house also enabled the household to the safety of their goods, where as in the road-side containers the risk of theft was high when the household retired to their house after closing up the shop. Informal settlement upgrading placed a heavy burden of operational expenses for households operating HBEs in Cato Crest, which if they could have avoided had they been able to carry on trading from within the house.
65 Below is an analysis of how households that run HBEs were treated by officials in the Cato Crest informal settlement upgrade.
4.4.2 The treatment of households that run HBEs by eThekwini Municipality officials in the Cato Crest Informal Settlement Upgrade
When the Cato Crest informal settlement upgrading Project Manager was asked how households that operated HBEs were accommodated into the upgrade, his response was that all households, whether they operated HBEs or not were treated in the same manner by the eThekwini Municipality Housing Department. This implied that no special effort or attention was paid to existing HBEs and how they could be accommodated into the informal settlement upgrade. The Project Manager for upgrading in Cato Crest stated that the eThekwini Municipality Housing Department had been mandated to eradicate informal settlements by speedily delivering housing and HBEs were, to him, one of the issues the Municipality’s Housing Department could not afford to be distracted by, in their upgrading plans.
4.4.2.1 Realities in respect of the types of HBEs that exist in Cato Crest
The researcher conducted household surveys with a total of 16 households that had operated HBEs in the Informal settlement, survived upgrading and now ran HBEs in the Cato Crest upgraded settlement. The targeted households that operate HBEs were originally 20- 25, but as the household survey commenced it was difficult to find the desired number of households that practiced HBEs who had survived the upgrade, because many HBEs had not survived the upgrade. Table 3 is a summary of the research findings in terms of the household survey, illustrating the different types of HBEs that were surveyed, as well as the change in the types of goods sold, that some of the HBEs underwent after the upgrade in order to remain competitive in the upgraded settlement.
One household operating a HBE changed its business from a shebeen trading South African Breweries (SAB) Beer to a tuck shop, due to the household suffering a countless number of raids from the local police, because the police were clamping down on unlicensed liquor traders. The Councillor’s office intervened in this matter and negotiated for a relaxation of laws in order to permit households living in temporary shelter, who were engaged in the unlicensed trade of liquor to continue doing so for a number of reasons. Firstly, although some of the households qualified for liquor trading licenses, these would only be awarded by SAB to the households once the households had a formal house. Secondly, it was not the households’ fault that they did not have a formal structure yet, as they were waiting for the
66 municipality to deliver their houses to them, which is why the Councillor’s office was arguing that the unlawfulness was merely an interim arrangement and could be overlooked as the households concerned would soon be relocated to the formal housing settlement. The police agreed initially. However, on of the surveyed owners of an HBE running a shebeen in the Cato Crest transit camp stated that local policeman kept harassing him at the shebeen and demanding bribes. This led to the household eventually shutting down their operation and opening a tuck shop instead. In this case, informal settlement upgrading relocated a households operating an HBE dependant on a formal housing structure, but the delivery of that formal house was delayed for so long that a household’s home-based enterprise suffered and was eventually shut down.
As illustrated in Table 3 on the next page, it is apparent that of the 16 surveyed households operating HBEs in the upgraded Cato Crest settlement, there was one highly common type of HBE namely, tuck shops, followed in popularity by a few shebeens, and one mechanic. A total of 7 tuck shops were survivalist enterprises that traded a small portion of daily necessities such as bread, milk, meat and other essentials. Of the 16 surveyed households operating HBEs 5 owners reported difficulties in re-establishing their businesses. The difficulties were linked to barriers of re-entering the market such as having to change the type of business they had originally, affording the containers that they had to trade out of and overcoming competition from the formal sector business enterprises trading in similar goods.
Of the 16 surveyed households operating HBEs 3 tuck shops that also sold alcohol, which according to the households selling alcohol was a lucrative business in the area although they had no trading licences, were able to adapt to informal settlement upgrading as their customer base was larger in both the informal and upgraded settlement. This was only because the households constantly accumulated income from their operations and eventually accumulated enough financial capacity to re-establish their businesses in the upgraded settlement. For this reason, and perhaps others, the alcohol trade was popular in Cato Crest upgraded settlement and tuck shops were also popular amongst other households in the Cato Crest upgraded settlement. The households operating tuck shops stated that it was cheap for them to re-establish the tuck shop business. The impact of the Cato Crest informal settlement upgrade on HBEs was largely negative because of the impact the officials attitude had on HBEs. In the absence of support for households operating HBEs,
67 households were faced with new costly requirements for running a business in the upgraded settlement.
Table 3: The surveyed home-based enterprises in Cato Crest.
TYPE OF HOME- BASED ENTERPRISE
OPERATIONAL/ OTHER CHANGES TO HBEs SURVIVED
UPGRADING
DID NOT SURVIVE UPGRADING TUCKSHOP Owner operated tuck shop from informal house; now operating
tuck shop from road-side container in upgraded settlement.
TUCKSHOP Owner still located close to informal settlement, HBE built in informal shelter attached to formal home.
TUCKSHOP Owner extended the new home using building blocks in order to create space for HBE.
TUCKSHOP No operational or other changes, besides the fact that the household has been relocated into an upgraded settlement.
BUSINESS SPACE RENTALS, PANEL BEATER, SHEBEEN
Owner has moved from running a tuck shop in informal settlements to operating 3 different business entities over and above, but inclusive of HBE.
TUCKSHOP Owner sells tuck shop goods from a road-side container. TUCKSHOP Owner’s business changed from tuck shop in informal settlement to
vegetable store in transit camp and road-side container tuck shop again in upgraded settlement.
BUTCHERY Owner changed business from home-based tuck shop to road-side butchery.
SHEBEEN Owner changed business due to lack of space in formal house from selling live chickens to road-side tuck shop/ shebeen.
TUCKSHOP Owner changed business after upgrading e.g. from selling candles to selling light bulbs in a road-side tuck shop/ mini market.
TUCKSHOP Owner renting operational space inside transit camp in order to operate tuck shop.
SHEBEEN Owner changed business to tuck shop inside transit camp, due to
police raids on the illegal sale of beer.
TUCKSHOP Owner lost formal employment used provident fund to finance their tuck shop in transit camp, whilst awaiting formal house.
TUCKSHOP Owner rebuilt tuck shop, using their own savings in the transit camp as they awaited formal housing.
SHEBEEN Owner underwent free Cato Manor ABM 3 year business training, awaiting formal SAB Trading Licence as they trade liquor illegally.
MECHANIC Continues to run mechanic business, although upgraded house has less space to park customers’ vehicles.
Source: Own construct (2011)
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