Chronicle Editor
INDUSTRIALIST and chief executive officer of United Refineries Limited Group, Mr Busisa Moyo, is spot on to express concerns about “unfair competition” by unregulated informal business practices.
Bulawayo City Council must ensure that businesses operating within its jurisdiction comply with its by-laws.
This should involve eradicating unregulated and unregistered informal businesses that are killing formal businesses by selling the same products at cheaper prices just outside their premises.
For a long time, the city council has turned a blind eye to the growing menace of informal businesses conducted on Bulawayo’s pavements by unregistered vendors.
The situation has now reached alarming levels, resulting in these informal businesses posing a direct threat to formal businesses that operate within the city centre.
Formal businesses are facing tough competition as they are unable to compete with the prices that are being offered by the informal sector. The situation is further compounded by the fact that most unregulated businesses evade taxes and other statutory obligations. This puts formal businesses that are compliant with all regulatory requirements at a disadvantage and puts their very survival at risk.
We call on the city council to enforce its by-laws by ensuring that every business operating in the city centre is properly registered and all proper taxes are paid. This will compel unregistered businesses to adhere to the regulations that govern business operations within the city centre.
We acknowledge that the informal sector plays a significant role in the economy of our country, but this should not come at the expense of formal businesses that are critical to the city’s growth and development. Informal businesses should also operate within the ambit of the law, just like formal businesses.
It is now clear that the presence of these unregistered businesses is driving formal businesses out of business. The council needs to take immediate action to curb this dire situation, as it affects the city’s economy negatively.
The council should also explore ways to empower informal businesses so that they can transition from being informal to formal businesses. It must take a bold stand and enforce its by-laws by clearing unregulated and unregistered informal businesses from the city’s pavements.
This will help save formal businesses that are the lifeblood of the city’s economy and ensure that businesses operate on a level playing field.
We believe that it’s time for the council to act decisively and reclaim the city centre from the domination of the informal sector.
derick.khumalo