adminAnswer Sithole
THE turn of the new millennium saw a steady increase of vendors selling wares in the street and other busy public places which hitherto had not been considered as platforms for selling goods.
The economic situation in the period between 2000 and 2008 led to the closure of industries resulting in job losses and the informal sector becoming the mainstay of the majority.
According to the 2013 Confederation of Zimbabwe Industries manufacturing survey, industry capacity utilisation is at 39,4 percent.
The economy is now “internalised”, implying that formal employment is now very low, therefore accounting for the increase in the number of people seeking several ways of earning an income.
Walking down the main street in Mutare, one can observe scores of people selling various wares which traditionally and in most cases could only be bought in formal and registered retail shops.
The vendors target customers who would be walking on the street and en route to public transport picking points.
This business model is what is referred to as street entrepreneurship. Street entrepreneurship has its pitfalls yet ironically it possesses enormous economic potential and is a source of income.
It is worth observing that street entrepreneurship is a relatively new phenomenon in Zimbabwe and for a long time has earned the infamous tag of ‘‘black’’ market.
It is largely characterised by the selling of wares such as beverages, fruits and vegetables, airtime, second-hand phones and pirated discs, among many other things.
Street vending has also been a thriving space for the sale of illicit commodities such as drugs and some of the vendors have turned themselves into mobile bureaux de change selling and buying foreign currency.
Zimstat says that about 3,7 million people in Zimbabwe are involved in informal sector activities.
The majority of people engaging in informal sector activities are in Manicaland province at 18,4% and 18,5% respectively out of the total in Zimbabwe.
The informal sector contributes around 19,5% of Zimbabwe’s gross domestic product or a total value-added of $1,73 billion.
Not only is street entrepreneurship benefiting the economy it is also a source of living for many Zimbabweans.
Mr Joel Gumbo, a Mutare businessman, said that in such an economy there is a need to be innovative, to survive.
“The only way to respond to such an environment is innovation.
“Innovation requires a large investment in research and development, a resource developing nations do not have.
“Innovation should be looked at from a Third World perspective that goes beyond the high-tech picture. It includes not only technologically new products and processes but also improvements in areas such as logistics, distribution and marketing. But street entrepreneurship is on the rise and many Zimbabweans are surviving on it,” said Mr Gumbo
One street entrepreneur said: “At some point I was employed at LAMCO, a tinned-food producing company in the 1990s. When the company was sold to Cairns Food in 1994, I lost my job and resorted to street vending for survival. All these years I have been looking for a job, but I cannot not get one. Through street vending, I earn a living and send my children to school. I have a son I have sent to college through street vending,” she said.
A 37-year-old man who left work at Mutare City Council said that he is making more than he thought the streets would offer and he is happy that way.
“I sell jewellery in the street and my merchandise gets finished in no time. This has given me a source of living more than I thought the streets would do.
“At the same time there is a need for the authorities to stop chasing us from the streets and give us areas from which we can sell our goods.
“The Government should stop seeing us as breakers of the law. We are willing to pay taxes,’’ said the man who declined to be named.
Street entrepreneurship is in line with the current economic blueprint ZIM-ASSET which seeks to address on a sustainable basis, the numerous challenges affecting quality service delivery and economic growth by indigenising the economy and empowering the youths.
Online Reporter