Assessment of the contribution of street vending to the. In most cases the trading spaces utilized by informal traders lack adequate infrastructure facilities, and are often inadequate to accommodate the high demand. Zimbabwe has witnessed the rapid expansion of informal crossborder trading icbt with neighbouring countries over the past two decades. The major finding is that the contribution of informal traders in zimbabwe cannot result in. He holds an honours in accountancy degree from the university of zimbabwe. Opportunities and challenges faced by women involved in informal crossborder trade in the city of mutare during a prolonged economic crisis in zimbabwe. Concepts and data for coherent policymaking issues paper no. It is shown that, as through much of africa, the market is a social as well as an economic nexus. Research by statistics south africa has shown that there are more females than males working in the informal sector and that these females dominate the wholesale and retail trade. Therefore, the objective of this study is to critically analyze the role of the informal economy in the livelihood of bulawayo residents. One of the key benefits is the employment creation potential. Migrant entrepreneurs and inclusive growth in south africa, mozambique and zimbabwe introductory panel the informal economy is a substantial blindspot in the policy imagination of the state, said edgar pieterse, director of the university of cape towns african centre for cities.
This report examines the structure and functioning of the informal sector in zimbabwe, and traces its development in relation to the formal sector. Ellis 2000 points out that livelihood strategies are composed of activities that generate the means of household survival. As far back as 1984, women in the informal sector constituted 64% com. Pleasant, harare zimbabwe evans manjoro statistics department university of zimbabwe p.
Icbt presents unique benefits to those engaging in such activities, but equally presents unique challenges. Importance, advantages and disadvantages of informal. The study focuses on a particular flea market and describes the precarious lives of a sample of informal traders. For instance, bankers and government officials in countries like bangladesh, kenya and south africa have categorically stated that the informal sector is a major source of revenue and could semiformalise if the right incentives are offered to informal traders. Informal entrepreneurship and crossborder trade between. Pdf informal entrepreneurship and crossborder trade between. The paper sought to investigate the economic impact of the informal sector in the zimbabwean economy. The case of street entrepreneurs of harare metropolitan, zimbabwe tavonga njaya faculty of commerce and law, zimbabwe open university, zimbabwe abstract the study sought to examine how street vendors were coping with informality and illegality in metropolitan harare. Tavonga njaya informal sector, panacea to the high unemployment in zimbabwe. Domestic violence dynamics on informal trading married. Activities in an informal economy take place outside of government regulation or recordkeeping. Harnessing resources from the informal sector is therefore a critical pillar in the inclusive financial sector development agenda.
This section explains the challenges facing zimbabwean cross border traders from the point they cross border traders cross into south africa. Pdf the significance of microfinance to urban informal. Employment, unemployment and informality in zimbabwe. Harare informal traders council hitc, harare, zimbabwe. The zimbabwe economy has been underperforming resulting in high cost of living. The study sought to evaluate the role being played by microfinance on urban informal traders in creating and sustaining their businesses in zimbabwe. Domestic violence dynamics on informal trading married women in harare, zimbabwe evidence s. Academics, informal traders, home industry management committee and other suitable stake holders who had intimate knowledge about the informal sector operations. The goal of the study was to determine the contribution of informal sector trade to poverty reduction in rusape, zimbabwe. This approach has been used in zimbabwe since 2006 to tax commuter operators, hairdressing salons, informal traders, small. There is often suggestion in the literature that the informal parallel economy, including icbt is africas real economy. The importance of assessing the situation of women informal traders under the esap environment prevailing in zimbabwe prompted the original study which was initiated in 1992 with a longitudinal perspective in mind. Informal trading activities in the city of harare have not been incorporated adequately in the land use framework of the city.
The challenges faced by informal traders in greater letaba. This has resulted in many unemployed members of the population joining the informal business sector. It is not only the site of economic production and exchange. The majority of people in this sector do not have skills.
Great zimbabwe university, faculty of commerce, box 1235, masvingo, zimbabwe. The rise of informal entrepreneurs in zimbabwe heriotwatt. Ninety questionnaires were administered to the community of informal traders in glen. Informal economy and crossborder trade between south africa and zimbabwe based on a multistakeholder policy dialogue workshop on 17 january 2017, held at burgers park hotel, pretoria introduction the socioeconomic significance of the informal sector, and informal crossborder trade icbt in particular, is now widely acknowledged. Assessing the informal cross border trade between kenya. Southern africa informal cross border traders icbts.
The researcher adopted a qualitative research approach and the study was applied in nature as it sought to understand how poverty can be reduced through informal sector trade. However, the country can benefit from informal sector revenue if worthwhile incentives are offered to informal sector traders. Pdf zimbabwe has witnessed the rapid expansion of informal crossborder trading icbt with neighbouring countries over the past two. The lines stretch from the heart of harares densely populated suburb of mbare into harares central business district cbd where hundreds more vendors line the pavements and. Informal traders contribute significantly more revenue to the exchequer than the gainfully employed in the formal sector by way of. Strategies for transitioning the informal economy to formalisation in. Informal traders in bulawayo are defying the health workers and government advice for citizens to maintain social distancing and stay at home to prevent the spread of the deadly covid19 disease. Deep financial markets play a critical role in the supporting economic growth and development in the country. The zimbabwe government sparked a storm when it announced plans to tax informal traders through the zimbabwe revenue authority zimra. A total of 175 women engaged in informal trade in harare were interviewed in. Can zimbabwe use its informal economy as a means for sustainable development in the current reconstruction process rutendo paidamoyo mbiriri 0500339n a thesis submitted to the faculty of arts, university of the witwatersrand, johannesburg, in partial fulfilment of the requirements for the degree of master of arts.
It analyzes the legal and regulatory environment as it affects the informal sector. Informal sector drives zimbabwes economy the chronicle. What are the advantages and disadvantages of an informal. In zimbabwe, presumptive tax is based on a complex calculation using information on sales, employees, assets and location. Pdf the impact of zimbabwes statutory instrument 64 of.
Informal traders association of zimbabwe, companies. The research sought to establish the effectiveness of presumptive tax system in widening the tax base. The paper characterises women in the informal sector in the periurban settlement by way of a case study of ruwa. Informal economy and crossborder trade between south. However, there is no consensus in the literature about the role of informal activities in stimulating broader economic development devey et al. Only the south american bolivia has a larger black market. Opportunities and challenges faced by women involved in. Informal sector, panacea to the high unemployment in. Its often very small scale, someone selling something for cash on the street. Sexual harassment tay 2010 estimated that in zimbabwe around 70% of women of reproductive age were involved in cross border trade.
Many women in zimbabwe are in the informal sector as unpaid family workers and own account family workers. Recent research has shown that informal cross border trading activities have cushioned the effects of the financial crisis and the food crisis on african countries. The informal sector sometimes acts as a buffer for cyclical trends in the formal sector by providing a dumping ground for retrenched labour and a waiting station for job seekers, zimbabwe congress of trade unions economist. Working off the books ie for cash and with no reporting to the governme. It was discovered that the informal sector is very significant in its contribution to the development of the zimbabwean economy. Informal trade has grown at an alarming rate in south africa because of lack of employment opportunities in both the private and public sectors.
Effectiveness of presumptive tax system in zimbabwe. Available statistics show that street vending accounts for 15 to 25% of total informal employment in africa. Zimbabwes informal sector largest in africa, second in. The major challenge the financial gazette by nelson chenga 26 sep 20 two lines consisting of hundreds of vendors selling wares meander for more than a kilometre. Harare informal traders council hitc home facebook. Informal traders association of zimbabwe phone and map of address. Labour and economic development research institute of zimbabwe.
The economic meltdown in zimbabwe in the last two decades triggered closures of many industries in. Zimbabwe has taken a stride by introducing presumptive tax in 2005, but was further enforced in 2011 to. The informal economy in zimbabwe has been fuelled by changes in the socioeconomic. Jobs in zimbabwe s formal economy including civil service jobs, agriculture, manufacturing, and export operations are showing negative growth, while some jobs in the informal economy including small businesses, vendors, and illegal trade operations are showing positive growth. Informal groups play an important role within organisations. Women informal traders in harare and the struggle for survival in. Informal economy as a source of livelihood in zimbabwean. Matangi statistics department university of zimbabwe p. Attracting foreign direct investment for growth and development in subsaharan africa. Policy options and strategic alternatives 372 afridev1. Informal economies have been defined as economic activity not.
Importance, advantages and disadvantages of informal groups. The rise of informal entrepreneurs in zimbabwe 3 chen 2006, informal employment in subsaharan africa comprises 72% excluding the agricultural sector. The impact of zimbabwe s statutory instrument 64 of 2016 import regulation on informal crossborders trading in south africa article pdf available february 2018 with 1,908 reads how we. Zimbabwes informal sector bureau of labor statistics. A recent study by the imf has shown that zimbabwe has the second largest informal sector in the world. Women drive zimbabwes informal sector newsday zimbabwe. We are a law abiding organisation representing traders and vendors in. It is hoped that the results of this research will unveil the impediments to the growth of businesses owned by women so as to attract international attention to help alleviate the problems.