A critique of local government’s implementation of Free Basic Energy policy for Local Economic Development: The case of Duncan Village, Eastern Cape, South Africa

This study rests on the arguments that access to electricity is very crucial in addressing the basic need for energy to low income households who are engaged in the informal sector as survivalist traders. This study investigated the energy struggles and survival strategies of informal businesses in Duncan Village to conduct business. The study has also presented major reasons why low income households in Duncan Village are involved in the informal sector business. Literature review and study findings reveal that low income households join the informal sector not by the desire and choice but rather as a survivalist strategy to earn a living; moreover, poverty and unemployment drives people to join the informal sector in an attempt to generate income for a livelihood. This study also laid more emphasis on the challenges faced by the informal business operators in Duncan Village, which include among others, lack of access to financial resources, clean energy, designated structures (shelter) to conduct business, harassment and confiscation of their commodities by municipal and government officials such as metro police. The study used a Qualitative method where structured interviews and focus group discussions were used to collect data. Participants who participated in the study were selected using purposive sampling. A sample size of 40 participants was selected to participate in the study. This included 30 informal businesses that rely on energy to do their business; and 10 municipality administrators from Buffalo City Metropolitan Municipality. Data was analyzed using a content analysis method. Description of the study location, population dynamics, ethical consideration, limitations of the study has equally been presented. The study findings reveal that the informal sector continues to be ignored and excluded from inclusive policy reforms and support by government; this is despite its potential in contributing immensely in the local and national economic growth and development. The study recommends that government needs to restructure its policies and start focusing on investing in inclusive growth by empowering poor or vulnerable people to actively participate, in growing the economy through selfstanding businesses that will create employment opportunities and reduce poverty. There is also need of a broader reflection on the impact of the government‘s ―safety net package which can be done by assessing institutional arrangements in BCM