BY LORRAINE MUROMO
HARARE City Council has stated formalising all businesses in the informal sector as part of efforts to increase its revenue base and bring them into the mainstream business sector.
Deputy mayor Kudzai Kadzombe revealed this yesterday during a Vendors Initiative for Social and Economic Transformation (Viset) symposium on leadership and formalisation.
This comes as the informal sector has become the backbone of Zimbabwe’s economy, contributing at least 80% of the gross domestic product (GDP).
However, the formalisation of the informal sector has remained problematic as vendors have continued to endure discrimination and harassment at the hands of local authority officials.
“As a city, we are growing at a faster pace and as such the informal sector is also growing and taking up space, especially in the central business district,” Kadzombe said.
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“The increase in the informal sector has led the city to come up with policies to formalise the informal sector. The SMEs [small and medium enterprises] policy is one such initiative.
“The SMEs policy is one of the policies we have crafted and is in the process of implementation. It is important to note that the allocating process for SMEs is ongoing and all the residential areas will be catered for.”
Kadzombe said application for home industries, retail and wholesale markets as well as flea markets was underway, but priority would be given to those registered.
“In the SMEs policy, we have included the revolving fund which is critical in assisting those in the sector and the fund is in the process of being registered,” she said.
“There is also going to be a 30% retention scheme which is going to be used for infrastructural development, including repairs and maintenance of vending stalls.”
Viset executive director Samuel Wadzai told NewsDay that they welcomed the move, but urged authorities to follow due processes and ensure vendors are cushioned from the prevailing harsh economic conditions.
“We welcome the remarks by the deputy mayor and the 30% retention scheme because we have been calling for this for a long time,” he said.
“The informal economy has been neglected and the spaces we are operating from are not good and not in line with the development agenda set by the government itself.
“We need modern markets, water and ablution facilities, so we hope that the money is going to be used properly.”
Zimbabwe Chamber of Informal Economy Associations secretary-general Wisbon Malaya said the initiative deserved to be given a chance.
“What we need now is to see that the City of Harare within its informal economy committee incorporates informal economy associations so that they make decisions on informed perspectives,” Malaya said.