Source: Govt steps up bid to unlock informal sector potential – herald
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 links with the mainstream economy.
Speaking at a meeting of Action Research on Urban Markets in Harare recently, Development Governance Institute director Dr Kudzai Chatiza said while the informal sector now provided the bulk of entry-level jobs, it required structured support to align with national development priorities.
“Urban markets and the wider informal sector now generate most entry-level jobs. 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,.
Dr Chatiza said weak forward and backward links 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 representative Mr Blessed Katema said preliminary assessments had revealed critical gaps in business skills and infrastructure, which needed to be addressed to facilitate transition into the formal economy.
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