Online Reporter
Ivan Zhakata
Herald Correspondent
Efforts to formalise the informal sector have been intensified by the Government, with authorities and stakeholders calling for an urgent upgrade of urban markets to improve productivity, working conditions and linkages with the mainstream economy.
Speaking at the Action Research on Urban Markets (ACRC) dialogue meeting in Harare recently, Development Governance Institute director Dr Kudzai Chatiza said while the informal sector now provides the bulk of entry-level jobs, it requires structured support to align with national development priorities.
“Urban markets and the wider informal sector now generate most entry-level jobs,” he said.
“Yet many of these jobs are low-productivity and precarious, undermining livelihoods.”
Dr Chatiza said formalisation, backed by infrastructure development and skills upgrading, was critical to unlocking the sector’s full potential.
“Informality can trap workers and firms, slowing investment and skills development, and limiting graduation to higher-value activities,” he said.
“Upgrading market ecosystems and creating pathways to higher productivity, and possibly formality, is essential.”
His remarks come as Government is implementing policies aimed at integrating informal businesses into the formal economy in line with broader economic transformation and inclusive growth targets under the National Development Strategy.
Zimbabwe has already recorded success stories in transforming informal trading spaces into organised economic hubs, notably in Mbare, where structured market systems and improved infrastructure have enhanced operations and compliance.
Upgrades at Siyaso Home Industries in Mbare have seen improved workspace organisation, better access roads and basic services, while the modernisation of parts of the Mbare Musika area has strengthened trading efficiency and sanitation, creating a more conducive environment for business.
Similar interventions are now being proposed for Glen View Area 8 Home Industry, one of the country’s largest informal manufacturing clusters, and Siyaso in Mbare, as part of efforts to scale up formalisation and industrial linkages.
Dr Chatiza said weak forward and backward linkages between informal enterprises and formal industry remained a major constraint.
“Weak forward and backward linkages with formal industry slow structural transformation and inclusive growth,” he said.
Stakeholders at the meeting acknowledged gaps in infrastructure, governance and service delivery in Harare’s major markets, while identifying opportunities for reform anchored on Government’s formalisation thrust.
Dialogue on Shelter project officer Ms Tarisai Manyowa said ongoing initiatives, including citywide profiling of markets and vendors, were meant to support structured upgrading and policy alignment.
“We are doing citywide market profiling of markets and vendors, including business development training, exchange visits and participatory planning in partnership with the City of Harare,” she said.
Vendors Initiative for Social and Economic Transformation (VISET) representative Mr Blessed Katema said preliminary assessments had revealed critical gaps in business skills and infrastructure, which need to be addressed to facilitate transition into the formal economy.
“We have identified gaps in business management skills and structural challenges such as inadequate infrastructure,” he said, adding that data collection was underway to inform targeted business and financial training programmes.
Mr Louis Mukumba from City of Harare said council was complementing Government efforts by improving market planning and ensuring compliance with urban development standards.
“When markets are established, key requirements such as public toilets and sanitation facilities must be in place,” he said.
“We are also looking at strengthening relationships between vendors at ranks and those in designated markets.”
Mr Mukumba said some informal markets were operating on land earmarked for other uses such as schools and clinics, highlighting the need for proper planning in line with the city’s master plan.
The Urban Markets Research forms part of the Inclusive Land Tenure and Infrastructure Financing Project under the African Cities Research Consortium, supported by the University of Manchester and implemented locally by Dialogue on Shelter in collaboration with the Development Governance Institute.
The study focuses on 12 major markets in Harare and examines land tenure, infrastructure, financing and governance systems, with findings expected to inform policy and accelerate the formalisation and transformation of the informal sector into a key driver of economic growth.
