Council moves to formalise informal sector, boost revenue

Source: Council moves to formalise informal sector, boost revenue – herald

Peter Tanyanyiwa

Herald Correspondent

THE City of Harare is intensifying efforts to formalise the informal sector and expand opportunities for small to medium enterprises (SMEs) as part of a broader strategy to enhance urban planning and increase municipal revenue.

Chairperson of the Small to Medium Enterprises Committee, Ward 16 Councillor Denford Ngadziore, said the local authority is currently consolidating public submissions gathered following the publication of the Harare Master Plan.

“We are in the process of collecting people’s views from the submissions made after the publication of the Harare Master Plan,” said Cllr Ngadziore.

“Our approach is to consider, almost on a daily basis, a number of issues raised by residents, including concerns from various vendors’ associations.”

The consultation process, he said, is expected to shape policies that accommodate informal traders while ensuring order and sustainability within the city.

Cllr Ngadziore indicated that the council is exploring the utilisation of public open spaces to support SME activities, in line with Harare’s anticipated urban expansion.

“As a city, we are going to expand and utilise most of the public open spaces so that they can be integrated into our small to medium enterprises framework,” he said. “This will allow us to create more structured and productive economic zones.”

However, he emphasised that the focus would be on activities that do not damage infrastructure or compromise the environment.

“Our main focus is to improve activities that do not damage infrastructure,” he said. “For example, we are looking at initiatives such as urban agriculture, artwork, and organised display and fencing systems. These are sustainable activities that can be properly managed within the city.”

The move comes amid growing pressure on urban authorities to balance economic survival for thousands of informal traders with the need to maintain order and protect public infrastructure.

Cllr Ngadziore said formalisation of the informal sector would be central to the city’s revenue generation strategy.

“Above all, we must ensure that council revenue increases significantly,” he said. “We are going to achieve this by heavily formalising the informal sector, bringing more traders into a regulated system where they can operate legally and contribute to the city’s finances.”

Harare has witnessed a surge in informal trading in recent years, driven largely by economic challenges and limited formal employment opportunities. While the sector provides livelihoods for many, it has also posed challenges in terms of congestion, sanitation, and urban planning.

The latest proposals signal a shift towards a more inclusive and structured approach, with authorities seeking to integrate informal traders into the city’s long-term development agenda.

Stakeholders are expected to continue engaging the council as the review process progresses, with final policy directions likely to reflect both community input and the city’s broader vision for sustainable urban growth.

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