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the Nature of INNovatIoN: a Study of the INforMaL CoNStruCtIoN SeCtor IN SWeetWaterS, KWaZuLu-NataL
Mayeki, S.*
Centre for Science, Technology and Innovation Indicators (CeSTII), Human Sciences Research Council (HSRC), Cape Town, South Africa
Orcid: https://orcid.org/0000-0002-8121-876X
Linkedin: www.linkedin.com/in/setsoheng- mayeki-4176401a4
Maziya, M.
Institute for Rural Development, University of Venda, Thohoyandou, South Africa
Orcid: https://orcid.org/0000-0001-5374-3260
Petersen, I.
Centre for Science, Technology and Innovation Indicators (CeSTII), Human Sciences Research Council (HSRC), Cape Town, South Africa
Orcid: https://orcid.org/0000-0001-9609-0853
Mustapha, N.
Centre for Science, Technology and Innovation Indicators (CeSTII), Human Sciences Research Council (HSRC), Cape Town, South Africa
LinkedIn: https://www.linkedin.com/in/nazeemmustapha/ *Correspondence: smayeki@hsrc.ac.za
abstract
In South Africa, the informal construction sector plays an important role in providing employment opportunities for skilled and unskilled workers, and affordable housing for low-income household in marginalised areas. However, the informal construction sector faces numerous challenges, including limited access to resources, training, and formalisation. Despite these challenges, the informal construction sector has demonstrated remarkable resilience and innovation. Informal construction business owners have developed innovative approaches to address challenges related to funding and construction materials. Drawing on a local innovation and production system (LIPS) framework, this study investigates the nature of and barriers to innovation as well as the networks important for innovation in informal construction businesses in Sweetwaters, KwaZulu-Natal, South Africa. A mixed- methods approach was utilised, incorporating qualitative interviews and a quantitative survey. The study found that the informal construction sector in Sweetwaters faces challenges such as a skills gap, constraints related to the low income market such as low profit margins, and limited
access to finance. Principal component analysis revealed that innovation in informal construction businesses is characterised by knowledge, linkages & training, Formal learning & development, and technical infrastructure. Lack of access to formal financing and training were the main barriers to innovation. The strongest interaction patterns occured between informal construction businesses and customers. To improve the informal construction sector, policymakers should focus on skills development, strengthening partnerships, and facilitating access to finance.
Keywords: informal construction sector; innovation barriers; innovation; interaction; South Africa
Introduction
In South Africa, the informal construction sector plays an important role in providing affordable housing to low-income households in marginalised areas including townships, rural and peri-urban areas (Lategan 2017; Lizarralde and Roots 2007). The sector contributes to constructing basic houses, backyard houses and informal settlements (Turok and Borel-Saladin 2016; Mlinga 2001). Research highlights the significance of the informal construction sector, with estimates suggesting the sector is responsible for building nearly all rural housing and a substantial portion of urban housing in developing countries (Georgiadou et al. 2017; Mkenda and Aikaeli 2015; Wells 2007). In urban areas, the informal construction sector offers affordable housing options for low-income residents that cannot access financing for formal housing (Lemanski 2009). Also, informal builders can respond quickly to the needs of growing urban populations by constructing smaller dwellings or extensions on existing structures (Marais et al. 2020).
In South Africa, the informal construction sector creates a wide range of employment opportunities, from unskilled to skilled labour, providing income and livelihoods opportunities for a large segment of the population (Fourie 2018; Windapo 2016; Lekarapa and Root 2011). The sector has thrived despite numerous challenges, especially since the end of apartheid (Dladla 2021; Lefoka 2019; Cottle 2014; Kajimo-Shakantu and Evans 2007). Such challenges include limitations in land access, funding, and training (Mselle 2023; Nor and Masron 2019; Wells and Jason 2010). The informal construction sector is a vital part of
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