Zimbabwe sounds alarm over criminal underworld in informal markets

Government has expressed concern over the increasing complexity of Harare's informal markets, warning that illicit activities, including drug and substance abuse, are becoming intertwined with informal trading operations even as the sector continues to play a critical role in the city's economy.

Speaking at the African Cities Research Consortium (ACRC) Harare Urban Markets Indaba, Harare Metropolitan Province Secretary for Provincial Affairs and Devolution, Shingirayi Mushamba, said policymakers, researchers and regulators needed a deeper understanding of both the visible and hidden dynamics shaping urban markets.

Dr Mushamba noted that Harare remains Zimbabwe's principal economic hub, contributing approximately 25 percent of the country's Gross Domestic Product (GDP), making the effective management of its markets a national priority.

"We need to understand these markets from the physical structures, from the people who are participating in them, from the buying power and the physical location of the markets," he said.

"But from the State's point of view, I would like you to think very deeply about the underworld market that often underpins or is associated with the visible market."

Dr Mushamba said drug and substance abuse had emerged as one of the most pressing social and economic challenges facing the capital, partly due to the city's relatively strong purchasing power.

"As a nation and as a metropolitan province, we have a serious challenge with drug and substance abuse. Harare's strong US dollar buying power makes it a significant market at regional level," he said.

He also highlighted the challenges associated with Harare's increasingly active 24-hour economy, saying urban infrastructure and public services were struggling to keep pace with changing patterns of economic activity.

"We have an economy that wants to perform full throttle, 24 hours a day, but are our water and sanitation facilities geared for that? These are some of the issues that must be addressed," he said.

The provincial secretary further pointed to the growth of alternative trading systems, including car boot markets and other informal trading arrangements, saying authorities needed to better understand how such developments were reshaping commerce in the city.

Meanwhile, Acting Harare Mayor George Mujajati described small and medium enterprises (SMEs) and the informal sector as the backbone of Harare's economy.

"The SMEs sector is at the core and centre of the economy of Harare. Eighty percent of households in Harare are dependent on SMEs and the informal sector for their livelihoods," he said.

Mujajati noted that the sector has become the largest employer in the city and remains a major contributor to economic activity and household incomes.

"When we talk about job creation, SMEs are the major employer. If we manage our SMEs properly, we will create many more jobs both directly and indirectly," he said.

He revealed that the city was exploring microfinance initiatives aimed at supporting viable SME projects while also investing in infrastructure such as roads, electricity networks and designated trading spaces.

The acting mayor also called for increased support for home industries, particularly the Glen View Area 8 industrial complex, which has suffered repeated fire outbreaks that have resulted in significant losses for traders and small businesses.

Speaking at the same event, Kudzai Chatiza, director of the Development Governance Institute, said the research initiative sought to generate evidence-based insights that could inform future interventions aimed at improving the sustainability and effectiveness of urban markets.

"Our study is trying to understand how those convergences can be amplified and how those divergences can be better understood so that we can mobilise each other as a society," he said.

The indaba brought together government officials, local authorities, academics, development partners, traders and civil society organisations to discuss strategies for strengthening urban markets, improving infrastructure and supporting livelihoods in Zimbabwe's capital.

As informal markets continue to expand and absorb a growing share of economic activity, participants agreed that balancing economic opportunity with effective regulation, public safety and service delivery remains one of the key challenges facing Harare's urban development agenda.