Income Allocation and Livelihood Sustainability: A Case Study of Street Vendors in Rural and Semi-Rural KwaZulu-Natal

Street vending plays a vital role in South Africa’s informal economy, particularly in rural and semi‑rural areas where access to formal employment remains limited. Despite extensive literature on regulatory exclusion and infrastructural challenges, relatively little is known about how street vendors manage and allocate income to sustain livelihoods and business activities. This study aims to examine the financial management practices of street vendors operating in rural and semi‑rural KwaZulu‑Natal. The study draws on the Sustainable Livelihoods Framework (SLF) and structuralist theory to guide the analysis. A qualitative research design was employed, supported by a small quantitative component. Data were collected through semi‑structured interviews, focus group discussions, and financial diaries involving 30 purposively selected street vendors. The findings show that vendors prioritize household welfare, particularly food security, housing, and children’s education. At the same time, earnings are reinvested into business operations, employment creation, and long‑term asset accumulation. Vendors also contribute to local economic circulation through informal supply chains and participation in community‑based financial systems such as stokvels.