Opinion / Columnist
Informal sector should be organized
03 Feb 2015 at 16:58hrs | Views
The fact that when one strolls through the streets of any large city in Zimbabwe, street vendors will be buzzing, selling different wares, among them vegetables, electrical appliances, clothes and air time, to mention only a few, depicts the importance of the informal sector to our nation's economy.
However, this case is a bit different in rural areas. Most informal players in rural areas produce goods for their own consumption. If the government gives a voice to informal players and provide strong institutional structures to influence the big players, the higher are our chances to move towards a more sustainable economy.
Recently, Local Governance Minister, Ignatius Chombo proclaimed that all vendors operating in Central Business District (CBD) should be chased away from streets alleging that they are compromising health standards.
Minister Chombo articulated these words while he was addressing mayors and council chairpersons at the 73rd Urban Councils Association of Zimbabwe annual general meeting that was recently held in Bulawayo.
Currently, there are very few toilets in the CBD that are incapable of accommodating the large numbers of vendors who spent the entire of each day selling their commodities in the city. Therefore, there is need for the vendors to be relocated where there is adequate sanitation.
Informal employment plays a pivotal role in the economic revival of our nation and it is also in tandem with the economic blue print Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim-Asset). Zim-Asset advocates for employment of the indigenes, who are the owners of the land. The Ministry of Local Governance, should therefore be urged to locate all vendors in appropriate areas such that they don't obstruct the public who will be shopping or conducting other business in towns.
The same should also be applied to pirating drivers. These pirating drivers should be positioned in designated areas where they should also pay a certain amount as royalty for their services. City fathers should avoid playing hide and seek with pirating drivers, instead they should regularize them.
The growth of the informal sector could greatly contribute to the achievement of poverty reduction and food security. This is so, because there are more people engaging in small to medium business informally.
It is imperative to note that informal employment is becoming the main mode of employment in other countries especially in China. According to reports, the Chinese labour market depends on informal jobs, no wonder why China has proved to be one of the fastest growing economies in the contemporary world.
The use of informal employment in China is mainly found on farms and manufacturing plants. China has been one of the successful nations that survived through informal employment.
In China, this concept was first introduced by the labour authority in Shanghai in 1996. Informal employment in China was a result of the massive downsizing by the state, the rapid expansion of the private economy, and the mass migration of surplus rural labour to urban areas.
Informal sector, contributes a largely to the Gross Domestic Product (GDP) of a nation. Organizing the informal sector and recognizing its role as a profitable activity may contribute to economic development.
Without any doubt the informal sector dominates our country's economy. Vendors should be allocated stalls to the periphery of the central business district; hence, the responsible ministry should put effort in improving the working environment for these hawkers. If vendors are organized, the government will increase its revenue base through collection of royalties from this promising sector. The city fathers should organize vendors such that they will be able to collect a certain charge from each vendor per day.
Effective regulatory framework of the informal sector will assist in reducing poverty. It is alleged that the informal economy in Nigeria is about two-thirds the size of its formal economy. It's largely composed of people distributing goods from other countries rather than producing their own marketable goods. This confirms well that majority of people across Africa works informally for survival.
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Peacemaker Zano can be contacted at peacemakerzano@gmail.com
However, this case is a bit different in rural areas. Most informal players in rural areas produce goods for their own consumption. If the government gives a voice to informal players and provide strong institutional structures to influence the big players, the higher are our chances to move towards a more sustainable economy.
Recently, Local Governance Minister, Ignatius Chombo proclaimed that all vendors operating in Central Business District (CBD) should be chased away from streets alleging that they are compromising health standards.
Minister Chombo articulated these words while he was addressing mayors and council chairpersons at the 73rd Urban Councils Association of Zimbabwe annual general meeting that was recently held in Bulawayo.
Currently, there are very few toilets in the CBD that are incapable of accommodating the large numbers of vendors who spent the entire of each day selling their commodities in the city. Therefore, there is need for the vendors to be relocated where there is adequate sanitation.
Informal employment plays a pivotal role in the economic revival of our nation and it is also in tandem with the economic blue print Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim-Asset). Zim-Asset advocates for employment of the indigenes, who are the owners of the land. The Ministry of Local Governance, should therefore be urged to locate all vendors in appropriate areas such that they don't obstruct the public who will be shopping or conducting other business in towns.
The same should also be applied to pirating drivers. These pirating drivers should be positioned in designated areas where they should also pay a certain amount as royalty for their services. City fathers should avoid playing hide and seek with pirating drivers, instead they should regularize them.
The growth of the informal sector could greatly contribute to the achievement of poverty reduction and food security. This is so, because there are more people engaging in small to medium business informally.
It is imperative to note that informal employment is becoming the main mode of employment in other countries especially in China. According to reports, the Chinese labour market depends on informal jobs, no wonder why China has proved to be one of the fastest growing economies in the contemporary world.
The use of informal employment in China is mainly found on farms and manufacturing plants. China has been one of the successful nations that survived through informal employment.
In China, this concept was first introduced by the labour authority in Shanghai in 1996. Informal employment in China was a result of the massive downsizing by the state, the rapid expansion of the private economy, and the mass migration of surplus rural labour to urban areas.
Informal sector, contributes a largely to the Gross Domestic Product (GDP) of a nation. Organizing the informal sector and recognizing its role as a profitable activity may contribute to economic development.
Without any doubt the informal sector dominates our country's economy. Vendors should be allocated stalls to the periphery of the central business district; hence, the responsible ministry should put effort in improving the working environment for these hawkers. If vendors are organized, the government will increase its revenue base through collection of royalties from this promising sector. The city fathers should organize vendors such that they will be able to collect a certain charge from each vendor per day.
Effective regulatory framework of the informal sector will assist in reducing poverty. It is alleged that the informal economy in Nigeria is about two-thirds the size of its formal economy. It's largely composed of people distributing goods from other countries rather than producing their own marketable goods. This confirms well that majority of people across Africa works informally for survival.
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Peacemaker Zano can be contacted at peacemakerzano@gmail.com
Source - Peacemaker Zano
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