The Informal Economy Policy was approved by Council in 2001. The purpose of this policy was to improve the management and development of the Informal Economy within the Ethekwini Municipal Area.

It was then realized that this policy does not address the challenges faced by markets within the EMA. A consultative process was initiated which culminated in the development of a Retail Markets Policy which was adopted and implemented in 2003.

The eThekwini Municipality Informal Economy Policy identifies the need for graduation opportunities for informal traders and these strategies must be seen as phases prior to engaging in formal business activity. This then led to the development of a number of sub-policies:

• Allocations Policy which make provision for criteria which determines the allocation of stalls to traders.
   
• Rentals Policy which provides guidelines to ensure that equitable systems and procedures are in place to collect rentals.
   
• Itinerant Traders and Containers Policy seeks to enhance the management and development of this trading activity throughout the EMA.

In 2006, it was thought necessary to review the implementation of this policy and the achievements of the Municipality in improving the Informal Economy environment and this led to the development of a document, A Review of the Informal Economy.

There was also an absence of a policy which coordinates the development of SMMEs within the eThekwini Municipal area and an SMME Strategy was developed and approved in 2006. Access to Finance Strategy was developed as a response to SMMEs identifying access to finance as a critical challenge they experienced.

Whilst the Retails Markets Policy addressed the issues of the retail markets, a number of flea markets were also experiencing challenges, this lead to a process which culminates in a coordinated Markets Policy which addresses and manages all markets within the Municipal area.