A major challenge facing the country is to move jobs from the informal sector of the economy to the formal sector, says the chairperson of the CCDI, Reuben Kadalie, in the CCDI’s latest annual report.

Research shows that Informal sector employment does not necessarily take people out of poverty, says Reuben, given the very low incomes earned. “It remains true that the craft industry in the broader context operates in the informal sector where the impoverished sector resides.” He quotes a study by Burger and Yu that showed an average of 21% of employed people worked in the informal sector,  but received only about 6% of total earnings.

The reasons given for low incomes in the informal sector were lack of skills and capacity, lack of product innovation, and the inability to add substantial value through appropriate production and marketing activities.

“The craft sector provides the perfect opportunity for people to move from the subsistence level to the substantive levels of the economy by giving creative expression to both ideas and product,” Reuben says.

This is due to the Western Cape peoples’ considerable talent and creative capacity to design and produce highly innovative and world class products, with individuals combining their energies and rich cultural diversities to uplift themselves and contribute to the growth and development of the Western Cape.

He says the range and depth of the CCDI’s programmes and projects are inspiring after nine years, and its high levels of creativity, energy, determination, thrust and commitment are  a tribute to the “enduring passion, vision and extraordinary leadership talent” of executive director Erica Elk. Her team of ”exceptionally talented and dedicated individuals simply perform their jobs in a remarkably efficient and effective way”.  

Reuben also thanks the CCDI’s key funders, the PGWC’s Department of Economic Development and Tourism, the National Department of Trade and Industry, the City of Cape Town, MAPPP-SETA, the Old Mutual Fund and other stakeholders.