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Street vending ban could worsen economic hardship?
2 hrs ago | Views
Economists have raised concerns over the government's decision to ban street and night vending across Zimbabwe's central business districts (CBDs), warning that the move could intensify economic hardships for millions of informal traders.
Earlier this month, the Ministry of Local Government and Public Works prohibited street and night vending nationwide, citing the practice as a contributor to the decline of formal retail. The ban followed restrictions on the import and sale of second-hand clothing, measures aimed at protecting formal retailers struggling to compete with cheaper alternatives.
However, Zimbabwe's informal sector, which includes street and night vending, plays a critical role in the economy. Estimates show the sector contributes around US$14.2 billion annually and accounts for over 76% of economic activity, according to the Zimbabwe National Statistics Agency.
Economist Chenayi Mutambasere argued that the ban is ill-timed and inconsistent with the current economic realities. "Zimbabwe is predominantly an informal trading economy. Abruptly banning street and night vending ignores the fact that most participants are small micro-enterprises that rely on this trade for survival," she said. Mutambasere stressed that the government should clearly define the problem it seeks to address, whether it is health and safety, or structural issues requiring formalisation and job creation.
Vince Musewe, another economist, warned that the ban could fuel black markets and corruption. "Without creating alternative sources of income or employment, a ban will simply push traders underground. The informal sector is highly adaptive and creative," he said.
Economist Stevenson Dhlamini acknowledged the government's rationale but called for a more empathetic approach. "Abrupt policy shifts risk deepening economic hardship. A balanced approach would involve gradual implementation, investment in domestic textile production, formal vendor spaces, and re-skilling initiatives," he said.
Zimbabwe's economy currently faces high unemployment, low wages, and a volatile exchange rate that erodes consumer earnings. Experts argue that any abrupt disruption to informal trading could have severe social and economic consequences, affecting livelihoods for millions who depend on the sector.
Earlier this month, the Ministry of Local Government and Public Works prohibited street and night vending nationwide, citing the practice as a contributor to the decline of formal retail. The ban followed restrictions on the import and sale of second-hand clothing, measures aimed at protecting formal retailers struggling to compete with cheaper alternatives.
However, Zimbabwe's informal sector, which includes street and night vending, plays a critical role in the economy. Estimates show the sector contributes around US$14.2 billion annually and accounts for over 76% of economic activity, according to the Zimbabwe National Statistics Agency.
Economist Chenayi Mutambasere argued that the ban is ill-timed and inconsistent with the current economic realities. "Zimbabwe is predominantly an informal trading economy. Abruptly banning street and night vending ignores the fact that most participants are small micro-enterprises that rely on this trade for survival," she said. Mutambasere stressed that the government should clearly define the problem it seeks to address, whether it is health and safety, or structural issues requiring formalisation and job creation.
Vince Musewe, another economist, warned that the ban could fuel black markets and corruption. "Without creating alternative sources of income or employment, a ban will simply push traders underground. The informal sector is highly adaptive and creative," he said.
Economist Stevenson Dhlamini acknowledged the government's rationale but called for a more empathetic approach. "Abrupt policy shifts risk deepening economic hardship. A balanced approach would involve gradual implementation, investment in domestic textile production, formal vendor spaces, and re-skilling initiatives," he said.
Zimbabwe's economy currently faces high unemployment, low wages, and a volatile exchange rate that erodes consumer earnings. Experts argue that any abrupt disruption to informal trading could have severe social and economic consequences, affecting livelihoods for millions who depend on the sector.
Source - newsday
