Cape Town planning 68 new trading spaces in Khayelitsha: Here's what you need to know

Cape Town's tourism economy is worth billions, but how much of that spending reaches the entrepreneurs and small businesses operating beyond the city's traditional visitor hotspots?   

It's a question worth asking as the City of Cape Town announces plans for 68 formalised trading opportunities in Khayelitsha, potentially creating more structured spaces for local food vendors, retailers and informal entrepreneurs.

The proposals, announced on Friday, 6 November, cover two existing commercial areas: Khayelitsha Shopping Mall and Thembokwezi Market. Both are now open for public comment via the city's website until 29 November 2026, where residents can access the proposals and submit feedback via the City's official consultation pages. 

While the plans are primarily intended to support and regulate informal trading, they also highlight the importance of investing in the neighbourhood economies that could play a much greater role in Cape Town's tourism industry. 

SEE: Taste the Story of Bo-Kaap like a local

Where are the new trading spaces planned?

According to the City of Cape Town, the proposals include:

• Khayelitsha Shopping Mall: 46 designated trading bays.
• Thembokwezi Market: 22 designated trading bays, alongside proposed ablution facilities and a storeroom.

The City says the plans were developed following extensive engagement between its Public Trading officials and local stakeholders. Importantly, these are proposed trading arrangements, not completed developments. Public feedback will help determine how the plans are finalised.

For traders, designated spaces and supporting facilities could provide a more predictable operating environment, potentially improving trading conditions and opportunities for business growth. 

Why township economies matter to Cape Town's tourism future

Cape Town has no shortage of internationally recognised attractions. But the challenge for a city looking to grow its visitor economy is ensuring that tourism spending reaches well beyond Table Mountain, the Atlantic Seaboard and the V&A Waterfront.

During the city's Tourism Month launch in September, Cape Town Tourism CEO Enver Duminy emphasised the importance of recognising the businesses, communities and experiences that make neighbourhoods such as Langa, Gugulethu and Khayelitsha destinations in their own right.

At the same event, Mayoral Committee Member for Economic Growth James Vos put tourism's contribution to Cape Town's economy at R24.5 billion in 2025, while stressing the need to spread that economic benefit more widely.

During September's Tourism Month, the City outlined its ambition is to encourage visitors to explore more neighbourhoods, support local businesses and discover experiences beyond the usual tourist circuit. But expanding the tourism map requires more than marketing.

It means investing in the infrastructure that allows local entrepreneurs to participate meaningfully in the visitor economy: accessible markets, clean facilities, reliable transport, safer public spaces and opportunities to connect with potential customers. 

Lessons from Langa's thriving food culture

There are already compelling examples of how neighbourhood businesses are a thriving part of Cape Town's tourism offering.

Time Out Culture Connector and all-round broadcaster and foodie, Nick Hamman recently explored Langa's food scene, joining local guide Phumelele Ndwe on a tour of family-run eateries, neighbourhood kitchens and independent food businesses.

Braai culture doesn't get more real than this, with Waya Rostile's roosterkoek and Nomzamo Butchery demonstrating how locals and their everyday businesses add to a compelling visitor experience.

READ: The ultimate Langa food tour – eating my way through Cape Town's oldest township 

The lesson is particularly relevant to Khayelitsha, where supporting existing entrepreneurs could help create stronger connections between neighbourhood commerce and the wider tourism industry.

Formalised trading spaces alone won't achieve that. Nor should local markets have to attract tourists to justify investment. Their first responsibility is to serve the communities and entrepreneurs who depend on them.

But well-managed trading environments could become part of a broader strategy to support township food businesses, local makers and independent retailers, while making it easier for visitors to spend money directly with local entrepreneurs.

The opportunity is to grow tourism alongside the local economy, rather than treating the two as separate priorities.

Have your say on Khayelitsha's proposed markets

The City is inviting residents, traders and interested stakeholders to review the proposals and participate in two public information sessions. 

Khayelitsha Shopping Mall trading plan

• Date: Tuesday, 17 November 2026
• Time: 9am–6pm
• Venue: Khayelitsha CBD Hall (Thusong Centre), corner of Walter Sisulu Drive and Steve Biko Road

Thembokwezi Market trading plan

• Date: Thursday, 19 November 2026
• Time: 9am–6pm
• Venue: White House, 31 Hope Street, Thembokwezi