Reconstructing the Informal Economic Sector in Bulawayo, Zimbabwe

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Artikels• Articles ‘Picking up the pieces’: Reconstructing the informal economic sector in Bulawayo, Zimbabwe HO EMA O ITLHOTLHORA: KAHOBOTJHA YA LEFAPHA LA MORUO Trynos Gumbo & Manie Geyer LA BAHWEBI SA SENG MOLAONG MOTSENG WA BULAWAYO, HO LA ZIMBABWE

Peer reviewed and revised Haesale ho thakgolwa Leano la ho Boloka Molao kgweding ya Motsheanong 2005 ditsing Abstract tsohle tsa metse ya ditoropo ke mmuso wa Zimbabwe, lefapha la moruo la bahwebi sa Since the launch of Operation Restore Order in May 2005 in all urban centres by the seng molaong motsemoholo wa Bulawayo le Zimbabwean government, the informal economic sector in Bulawayo has undergone fetohile le hona ho hola ruri.Thulanong le molao significant transformations and growth. In contravention of the legal and regulatory le ditaolo tsa melawana esitana le ho weng controls and against the backdrop of a severe economic crisis, the government ka sekgahla ha moruo, mmuso o ikakgetse ka embarked on a clean-up campaign that devastated the urban poor and reduced setotswana letsholong la ho hlwekisa le tshwara them to destitute people. The blitz destroyed informal business structures, evicting and batho ba futsanehileng metseng ya ditoropo detaining operators and confiscating their wares purporting to restore the lost glimmer ho ba fetola mehofe.Taba ena ya sehloho and liveliness of the city. Even registered vendors that operated at designated sites with sena e sentse metheo ya kgwebo ya bahwebi operating licences properly issued by the city authorities were not spared. This study’s ba seng molaong, ho falliswa batho le ho preliminary findings reveal how the planning system has metamorphosed to keep up with tshwara ba tsamaisang kgwebo ena esitana changing circumstances and how it has helped to revolutionise the vendors’ struggles le ho nka thepa ya bona eo ba e rekisang ho by organising and mobilising them to revive the indispensable informal economy. In bewa lebakanyana la hore ho kgutlisetswa conclusion the article argues that city authorities should work closely with the associations botle le bophelo ba motsemoholo. Ekasitana of the urban poor to achieve the objectives both of maintaining urban health and of le bahwebi ba mebileng ba ngodisitsweng ka ensuring the means of livelihood for the unemployed, in particular against the backdrop molao ba neng ba rekisetsa ditsheng tse nang le of a distressed formal sector that has reeled under economic structural adjustments that mangolo a tumello (dilaksense) tse ntshitsweng led to massive deindustrialisation and retrenchments since the 1990s. ka molao ke balaodi ba motsemoholo ha di a ka tsa bolokwa. Diphuputso tsa pelenyana ‘TEL DIE STUKKE OP’: DIE HERKONSTRUKSIE VAN DIE INFORMELE SEKTOR tsa thuto ena di hlahisa kamoo mokgwa wa moralo o fetohileng kateng ho boloka kgato le IN BULAWAYO, ZIMBABWE maemo a fetohang le hore ho thusitse jwang ho matlafatsa dintwa tsa hohahamalla bophelo Sedert die begin van die Zimbabwiese regering se Operasie Herstel Orde in al die stede ba bahwebi ba mebileng ka ho hlophisa le in Mei 2005 het die informele sektor in Bulawayo betekenisvolle transformasies en groei ho ipopa ngatana e le nngwe boitsekong ondergaan. Teenstrydig met die wetgewende en regulerende beheermaatreëls en teen ba bona ho tsosa moruo wa kgwebo e seng die agtergrond van ‘n ernstige ekonomiese krisis het die regering ‘n opruimingsveldtog molao ya bohlokwa. Qetellong ditaba tsena gevoer wat die stedelike armes se lewens verwoes, en hul haweloos gemaak het. In die di hlalosa hore balaodi kapa batsamaisi ba ka blits veldtog is informele besigheidstrukture vernietig, operateurs uitgedryf of gevange sehloohong ba motsemoholo ba tshwanetse geneem, en hul ware gekonfiskeer in ‘n poging om die verlore glorie en lewenskragtigheid ho sebetsa mmoho le mekgatlo ya bafutsanehi van die stede te herwin. Selfs geregistreerde handelaars wat op aangewese ruimtes, ba metseng ya ditoropo hore bobedi ba bona met goedgekeurde permitte wat deur die plaaslike owerheid uitgereik was, handel ba atlehe ho fumana maekemisetso a bona a gedryf het, was nie gespaar nie. Voorlopige bevindings van hierdie studie toon aan hoe ho boloka bophelo ba metse ya ditoropong die beplanningsisteem verander het om tred te hou met veranderende omstandighede le ho tiisa mekgwa ya bophelo bo botle ba en hoe dit gelei het tot die revolusionarisering van die informele handelaars se stryd batho ba sa sebetseng haholoholo ka baka deur die organisering en mobilisering van die handelaars met die oog daarop om die la ho lahlehelwa ha lefapha la bahwebi ba onvervangbare informele ekonomie te laat herlewe. Laastens is daar gevind dat die seng molaong leo le ileng la putlama ka tlasa plaaslike owerhede nou met organisasies van die stedelike armes sal saamwerk om dikamano tsa motheo tsa moruo tse bakileng beide die doelwitte van behoud van stedelike welstand en metodes van oorlewing vir hore ho be le ho wa ha diindasteri esitana le die werkloses te bereik, naamlik teen die agtergrond van ‘n sukkelende formele sektor ho ntshuwa mesebetsing ha batho ho hoholo wat gebuk gaan onder die program van ekonomiese strukturele aanpassings wat gelei haesale ho tloha ka dilemo tsa bo1990. het tot deindustrialisasie en afdankings sedert die 1990s.

Mr Trynos Gumbo, PhD candidate, Department of Geography and Environmental Studies, University of Stellenbosch, Private Bag X1, Matieland, 7602, South Africa. Cell : +27782261507, email:< [email protected]> Prof. Manie Geyer, CRUISE, Department of Geography and Environmental Studies, University of Stellenbosch, Private Bag X1, Matieland, 7602, South Africa. Phone: 021 808 3107, email : The authors wish to extend their utmost gratitude to the editors of the journal and two anonymous reviewers who provided great insights that helped in shaping the final form of the article. However, the usual disclaimer applies and all the views contained in the article are that of the authors.

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1. INTRODUCTION International Labour Organisation, and the health and cleanliness of the it is now believed to comprise various cities. The article starts by tracing the Although it always formed part of the forms of informal employment in formal background of the concept of informal African urban economy, the ‘informal businesses incorporating all workers sector, particularly in Zimbabwe, before sector’ – a term coined by Keith Hart in engaged for wage employment with- reviewing relevant literature. The focus the early 1970s – received scant atten- out formal contracts, social protection then shifts to a case study of Bulawayo tion in academic literature before its and benefits, in addition to the earlier City to highlight the growth, spread and ‘discovery’ (Chen, 2005: 3; 2006; 2007: 1; components of informal enterprises that explosion of urban informal economic Gerxhani; 2004: 2). were common with earlier definitions activities over the past five years. The Researchers (Boeke, 1953; Geertz, 1963; (Chen, 2005: 7; 2006; 2007; Kanbur, 2009: article goes on to reflect the responses Lewis, 1954) had previously referred 4; Williams, 2010: 247). of various stakeholders such as the public and private sectors and the to the phenomenon as the ‘residual’, Despite the numerous terms, common urban poor’s associations. It also tracks ‘bazaar’, and ‘traditional’ economy confusions and difficulties in defining the various developments that have (Kanbur, 2009: 3; Peattie, 1987: 852). the concept, the informal sector has taken place to put the sector back on Earlier scholars had expected the proved to be useful and a reality not its track and examines the challenges informal sector to disappear with the only to millions of urban poor who spread of industrial expansion and that lie ahead. The article concludes depend on it as a form of employment, by suggesting the possible options to capitalist production systems that were income generation and source of food, believed to transform into formal busi- strengthen the sector and areas for but also to policymakers and research- further research on the subject. nesses, given the right mix of economic ers, as evidenced by a plethora of pub- policies and resources (Williams, 2010: lications since the coinage of the term 246). Hart (1973) and, in particular, the four decades ago (Chen, 2005; 2006; 2. AN OVERVIEW OF INFORMAL International Labour Organisation (ILO, 2007). According to Meagher (1995: ECONOMIC SECTOR 1972) brought the sector’s potential as a 259), numerous publications contend GROWTH IN ZIMBABWE development instrument to the forefront that the sector contributes immensely (Chen, 2005: 2; 2006; 2007: 1; Kanbur, to national economic development, The concept of the informal sector be- 2009: 2). For some time the phenom- particularly those found in the African, came more visible in urban areas of de- enon was believed to be a common Asian and Latin American continents. veloping countries, particularly in Africa, sight only in developing countries until it However, divergent views about opera- immediately after independence, was realised from the late 1980s that the tions and how the sector should be suggesting that it had been heav- informal economic sector had also im- planned for and managed have also ily suppressed by pre-independence printed itself in cities of the developed resulted in conflicting decisions on how governments. For instance, in Kenya world, albeit in smaller percentages central and local governments should and Ghana, it is most likely that informal than in developing countries (Harding & react to the growth of the sector. Only activities had long existed in these Jenkins, 1989; Portes, Castells & Benton, those few governments that subscribe countries before the groundbreaking 1989; Schneider, 1997; Williams, 2010). to the structuralist school of the informal studies by Hart and the ILO in the late sector growth and operation have 1960s. According to Kaplan, Wheeler The concept of the informal sector is & Holloway (2004), the proliferation of very elusive and complex. Even the deliberately devised ways of promot- ing the sector, while the majority of the phenomenon in urban areas of earliest scientists and organisations that developing countries can mainly be led to the coinage and popularisa- governments of developing countries have failed to develop and incorporate attributed to rapid urbanisation (Jenkins, tion of the concept in the early 1970s Smith & Wang 2007: 29) and natural grappled with a convincing definition of the phenomenon in their mainstream economies, regarding it as comprising population increase, in particular at the the term. The phenomenon is com- either marginal (dualist perspective) or end of colonialism. There is, therefore, a monly defined, citing what is absent or illegal (legalist perspective) activities. worrying disparity between the formal, insufficient about it (Williams, 2010 : 247). decent and regularly remunerated jobs For example, the ILO defined the sector It has become clear over the past that are created every year in cities as “private unincorporated enterprises several decades that neglecting the of the developing world (particularly by individual and households which are informal sector and regarding it as huge primate cities that continue to be not legal entities separated from their marginal and illegal leads to rampant favourites of migrants), as both national owners and with no record keeping to unemployment and extremely high pov- and city governments as well as private their operations and accounts” (ILO, erty levels. Against the backdrop of the sector businesses in poor countries, 1972; Kanbur, 2009: 3). Characteristics of infamous Operation Murambatsvina, which fail to generate formal employ- the phenomenon were used to define launched by the Zimbabwean government to absorb the soaring numbers, the concept, a futile attempt that led to ment in May 2005 to destroy informal force many who are attracted by the descriptions rather than giving a precise businesses in all the country’s urban “bright lights” (cities are believed to and concise definition. The concept centres, this article aims to highlight the be places of hope and opportunity to teems with inconsistencies and is known strategies and programmes that have migrants) to join the so-called informal by numerous terms such as black been employed by various stakeholders economy (Arimah 2001: 115). Although or underground economy, bazaar to reconstruct the informal economic Africa has the lowest proportion of economy, among others. Therefore, sector in the City of Bulawayo, the urban residents compared to other it means different things to different second largest city in the country. The continents, it is experiencing rapid people, particularly in different regions. operation was launched under the urban growth that is higher than the Continuous refinements of the concept pretext of ‘cleaning up’ the country’s average growth of the economy, thus led to a new and expanded term, urban areas of so-called ‘social and creating huge social, economic and the ‘informal economy’ in 2002 by the economic vices’ that threatened political challenges for the continent as

54 Gumbo & Geyer • ‘Picking up the pieces’: Reconstructing the informal economic sector in Bulawayo, Zimbabwe millions are commissioned every year to try and stimulate economic invest- 3. A SYNOPSIS OF OPERATION into informal employment by default ment and growth (Dhemba, 1999: 10). MURAMBATSVINA (OR)/ (Kaplan et al., 2004). Contrary to expectations, the reforms RESTORE ORDER (ORO) In Zimbabwe, rapid urbanisation prior dismally failed to improve the economy IN ZIMBABWE to independence in 1980 led to the as most of the prescriptions of ESAP In contravention of the Regional, Town visibility of the informal sector in urban exposed and weakened the majority of and Country Planning (RTCP) Act of centres. However, for most of the industries, leading to massive retrench- 1996 and other regulatory controls the pre-independence era, particularly ments and closures, high unemploy- government embarked on a clean-up during the early days of the Unilateral ment, declining real wages, as well as campaign that devastated the urban Declaration of Independence (UDI) in soaring food and fuel prices (Dhemba, poor and reduced them to destitute 1965, Zimbabwe’s economy was per- 1999: 5). A series of counterproduc- people, a situation aggravated by a forming very well and was supported tive political and economic decisions by large-scale industrial, commercial, severe economic crisis the country was such as the country’s participation in agricultural and mining businesses such experiencing. The incessant growth and that attention and emphasis was only the DRC war in 1998 and payment of spread of the urban informal sector given to formal businesses (Mhone, gratuities to War Veterans drained the in the country, particularly after the 1993: 1). Informal economic activities already dwindling national treasury and adoption of economic structural adjust- were outlawed and a plethora of instru- led to unprecedented inflation and ment measures in the 1990s and the ments such as the Town and Planning poor economic performance. Many implementation of the indigenisation and empowerment programmes at the Act of 1946, the Vagrancy Act of 1960, people who lost their jobs found havens beginning of the new millennium, led to the Urban Councils Act of 1973 and the in the urban informal sector and thus open dissatisfaction and disapproval of Vendors and Hawkers Bylaws of 1973 the phenomenon mushroomed in the were used to control rapid urbanisation the phenomenon by both the local and country’s urban centres. A survey by and curtail participation in the sector central governments as well as private McPherson (1991: 1) estimated that (Brand, 1986; Chirisa, 2009; Davies, 1974; formal businesses. However, intolerance Dhemba, 1999: 8-9; Gumbo, 2010a). 845,000 micro- and small enterprises in of the famous and popular sector in However, informal sector activities Zimbabwe employed about 1.6 million the country reached boiling point, started improving from 1975 when people representing a 27% national subsequently leading to the infamous industrial production succumbed to labour force, and women were forced Operation Murambatsvina in May 2005 the fierce liberation struggle, and the to join the informal sector to take care that led to the massive demolition of relaxation of segregative regulations led of their families after the retrenchment informal businesses and the eviction of to increased urbanisation (Brett, 2005: of their husbands from their formal jobs “illegal operators” to purportedly clean 93). By the late 1970s the urban informal (Mupedziswa & Gumbo, 1998). up cities of social and economic vices sector was increasingly absorbing more (Gumbo, 2005; Kamete, 2007). The people as Davies (1978) reports that at Political wrangles and contestations operation indiscriminately destroyed least 450,000 people were employed in as well as violent expropriation of both registered, licensed and organised this sector. land and property from white farmers, informal businesses as well as those that lacked organisation and were not At independence in 1980, the new through a fast-tracked land reform operating on designated sites (Gumbo, government inherited well-developed programme that was dubbed the “Third 2005; Kamete, 2007; Potts, 2007; Ranger, industries and capitalist firms, with Chimurenga” during the just ended 2007; Tibaijuka, 2005). According to sound state services and relatively high decade, had serious and more severe Tibaijuka (2005), the exercise affected per capita incomes (Brett, 2005: 96). economic impacts than that of ESAP of about 3 to 4 million Zimbabweans who However, the government’s decision the 1990s (Raftopoulos, 2006; Ranger, earned their living through the informal to adopt a socialist political ideology 2007). The closure of most formal sector (Potts, 2006). The operation was and continue with corporatist policies businesses and the withdrawal of invest- and highly regulated systems crowded widely condemned by local, regional ments led to massive retrenchments out private capital and resulted in and world organisations as an affront and a total collapse of the industrial serious economic inefficiencies and to human development. The central sector that had strong linkages with soaring unemployment rates (Carmody, government, through the Ministry of 1998; Kamete, 2006; Ranger, 2007). the agricultural sector (Fontein, 2009; Local Government, Public Works and The abolishment of restrictive and Magure, 2008; Michael & Masunungure, Urban Development (MLGPWUD) that segregative legislation, coupled with 2006). The negative economic develop- had ordered and initiated the destruc- the euphoria of socialism and self- ments led to the burgeoning of the tions, shifted their policy position on reliance, led to high population levels informal sector, such that by 2002 it the informal economy. They initiated that could not be accommodated in was estimated that over 50% of the the informal sector rebuilding exercise largely in response to people’s cries and the formal sector and to an opening of national labour force was employed in world condemnations. However, the floodgates in the informal sector. The the informal sector (Kamete, 2004). The 1986 labour force survey observed that lack of financial, human and technical urban informal sector employed over the proportion of the labour force in the resources, compounded by an ailing 76% of the urban labour force in 2004, informal sector had increased from 10% national economy, led to dismal failures immediately prior to the Zimbabwe to 20%. According to Brett (2005: 92), of the reconstruction exercise. Local the government made a rapid switch African National Union-Patriotic Front authorities such as the City of Bulawayo from socialist ideology by adopting (ZANU PF) government-sponsored had to re-strategise and use their local the Economic Structural Adjustment clean-up campaign in May 2005 (Dube, capacities to rebuild their informal Programme (ESAP) by the end of 1990 2010). business sector.

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4. CONCEPTUAL FRAMEWORK Movement for Democratic Change 4.1 Dualist: Early neoliberal and OF THE INFORMAL SECTOR: (MDC), its contribution to employment Marxist approaches is still very high. Although the informal CONTRIBUTIONS AND The earliest perspective is the dualist,1 economy, particularly in the continent, PERSPECTIVES OF THE which has its origin in the 1950s and provides a means of survival and INFORMAL SECTOR 1960s writers and the 1970s Marxists sometimes development of low-income who believed that the informal sector It is important to recognise the three populations and is also an integral only consisted of survival and marginal dominant viewpoints about the informal part of city economies, the majority of activities (Meagher, 1995: 261). During sector that considerably and directly African countries are still awash with those early years the informal sector affect the operations and growth of reports of widespread destruction and was regarded as a bazaar or residual the informal sector by national gov- discouragement of informal sector economy that specialised in petty and ernments, irrespective of how much businesses in their cities. The conflicting traditional activities as opposed to the phenomenon contributes to the attitude towards the informal sector is the mainstream advanced economy provision of employment or the reduc- summarised by Hansenne (1991: 1), who (Chen, 2005: 16; 2006; 2007). However, tion of poverty. Numerous studies have observes that the informal sector can the idea of a residual economy, proved that the informal sector makes a either be viewed positively as: substantial contribution towards uplifting believed to be in the process of disap- the living standards of the urban poor. a provider of employment and pearing with increased industrial pro- For instance, with figures ranging incomes to millions of people duction, and popular during the years who would otherwise lack the between 60% and 80%, the African of mass production and consumption means of survival or more nega- of the 1950s and 1960s in the capitalist continent, particularly the sub-Saharan tively as a whole segment of so- African region, has the highest estimates ciety that escaped regulation world, was proved wrong by studies of of informal sector businesses (Blunch, and protection. On the other the 1970s that observed that the sector Canagarajah & Raju, 2001). According hand it can be romanticised as was resilient, becoming innovative and a breeding ground of entrepre- to Gerxhani (2004: 268), the informal spreading. neurship which could flourish if sector contributes an average of 12% only it were not encumbered to the Gross National Product (GNP) with a network of unnecessary 4.2 Structuralist: Marxist of developed countries and slightly regulation and bureaucracy or approaches – Participation as higher percentages of 20% and 25% can be condemned as a vast exclusion sea of backwardness, poverty, are also given for transitional countries 2 crime and unsanitary conditions The structuralist perspective was in Eastern Europe and the former that must be eliminated. popularised from the late 1970s by Soviet Union. However, higher average researchers such as Moser (1978) and percentages of between 35% and 44% Many national governments of developing countries do not seem Portes, Castells & Benton (1989) who are normally cited for the developing observed that the informal and formal compelled by the high contributions of world, particularly countries in Africa, sectors are inextricably connected and the informal sector towards creating Latin America and Asia than in the interdependent. According to Williams not only employment for the majority of Western Developed World (Blunch et al., (2010: 248), the informalisation process poor urban residents but also national 2001; Gerxhani, 2004: 268). Such higher is part and parcel of the modernisation economies to deliberately protect and percentages of the sizes of informal process that is witnessed by increased promote the phenomenon. Instead sector businesses are corroborated by linkages between the two sectors they choose to destroy and disturb the Arimah (2001: 115), who contends that through subcontracting of jobs that is activities due to their strong negative some of the largest cities in Africa such common in garment-manufacturing beliefs and attitude towards the sector. as Kinshasa in the Democratic Republic sectors. However, the main concern is of Congo provide employment to It is, therefore, critical to provide a the domination and subordination of about 80% of the population while concise and detailed review of the the informal sector by the formal sector. Lagos employs about 69% of the entire various perspectives and conceptu- It is believed that capitalism maintains urban labour force. In Zimbabwe, the alisations of the informal sector in this manipulative relationships between contribution of the informal sector to article as they greatly influence the the two sectors that will perpetuate the employment and poverty reduction has responses governments adopt towards informal sector’s struggle for survival. been on the increase since independ- the informal sector. Basically three ence. From a low figure of 10% in the common perspectives have dominated 4.3 Legalist: New neoliberal 1980s, its contribution rose to over 80% academic literature and discourses –Participation as exit in 2008 (Dube, 2010), and with the about the operations and structure of formal economy struggling to improve the informal economy, including the The legalist3 view was popularised in in the past two years of the Unity dualist, the structuralist and the legalist the 1980s by scholars such as Hernando government between ZANU PF and the viewpoints (Chen, 2005: 16). de Soto who observed that the poor

1 It regards the informal sector as an upshot of, or a response to the failure of the modern industrial economy to absorb residual labour force and act as a safety net for the marginal populations (Hart, 1973; ILO, 1972). The sector is regarded as distinct and without any relations with the formal counterpart. The type of activities that are normally considered by this perspective are traditional and survival ones that normally do not add value to the products that are traded and not manufacturing and processing activities.

2 The school believes that there are relationships between the formal and informal economies. A large corpus of recent literature has revealed linkages between the formal and informal sectors in terms of inputs and goods where formal businesses try to reduce production costs by subcontracting small informal businesses that have expertise to produce high-quality products (Castells & Portes, 1989; Moser, 1978).

56 Gumbo & Geyer • ‘Picking up the pieces’: Reconstructing the informal economic sector in Bulawayo, Zimbabwe cannot afford the costs and bureauc- of informal businesses within the city sector business location was developed racy of registering their enterprises centre, residential suburbs and industrial by means of Geographic Information and hence choose to operate illegally areas of Bulawayo and the various Technology (GIT). (de Soto, 1989; Rakowski, 1994: 505). strategies that are being applied by Financial burdens imposed by standard the local authority to redevelop the systems of governance prevent them phenomenon. Bulawayo was selected 6. CASE STUDY OF BULAWAYO: from entering the formal sector. The as a case study mainly due to the POST-MURAMBATSVINA extensive development of the informal activities are regarded as deliberately RECONSTRUCTION OF THE avoiding local and central tax systems sector in response to widespread INFORMAL ECONOMY and levies to service providers such as closures and scaling down of almost local authorities (Williams, 2010: 249). 100 formal industries, among them IN ZIMBABWE Numerous studies have proven that the Zimbabwe Engineering Company, Bulawayo City has a current population most informal sector activities in poor Hubert Davies, Radar Metal Industries, of approximately 970,000, half that of countries are a response to shortages National Blankets, G & D Shoes, Merlin, Harare (Feremenga, 2005: 348). It is of employment and, although they Tregers Group, Stewarts & Lloyds, are carried out in the open, they tend Hunyani Holdings and Cold Storage home to the headquarters of a number to fail to comply with the regulations. Company that left over 20,000 without of industrial businesses such as the The activities are hidden in the sense of jobs. The researcher’s prior knowledge National Railways of Zimbabwe. Like staying out of sight from the public, but and familiarity of the city before and any urban centre in the country, the after Operation Murambatsvina also rather staying out of sight from institu- city’s well-structured and organised in- helped in conducting the fieldwork tions such as official government tax formal markets and vending bays were in Bulawayo. In terms of the city’s size systems, local (property tax) and central and the phenomenon under study, destroyed by the infamous 2005 opera- (income); hence they are kept in an Bulawayo gave an opportunity to tion. At the time the informal sector had ‘unofficial’ state to avoid tax systems. gather sufficient scientific data for become the mainstay for the majority If informal merchants were to move analysis since it is the second largest of the residents, and the local authority into buildings and become formal they city in the country after the capital would be forced to pay rent to owners was deriving substantial revenues from city Harare. In addition, the city had of buildings, or if they own the buildings fees levied from informal sector activi- boasted of a well-organised informal themselves, they would eventually pay ties. The blitz destroyed informal business sector even before the destructive property tax to the local government. structures, evicting and detaining operation. The city’s political landscape Both of these are much higher than the operators and confiscating their wares, also led to its choice as it witnesses little levies paid for informal spaces marked political interference from the former purporting to restore the lost glimmer out on public spaces. It is also kept from ruling party, ZANU PF at local level. The and liveliness of the city. Even registered the income tax system because that former opposition party, the Movement vendors that operated at designated would render their operations unviable. for Democratic Change (MDC) that is sites with operating licences properly It has, however, been observed that now in a shared government after a ne- issued by the city authorities were not the phenomenon is so complex and gotiated political coalition, dominates spared. The operation took place the affairs of the city. To ensure reliability diverse that trying to conceptualise against the backdrop of deepening and validity of the results a battery of and understand it through any of these vulnerability in the Zimbabwean society three vantage points individually is data-collection tools was used to solicit because of food insecurity, limited inadequate as there are many varia- mostly qualitative data from informal capacity in basic services and eco- tions and contexts in the way in which sector operators and leaders of their nomic decline (Gumbo, 2005; Kamete, the informal sector operates and the associations, professionals such as motivations to participate in them. urban planners, and city managers 2007; Potts, 2006; 2007). Reacting to While some willingly choose to operate and administrators. Probability sampling widespread and worldwide condem- illegally, others are forced by existing methods were used to select par- nations of the destructive operation, ticipants in the study. Informal business political, economic, social and insti- the central government through the operators were selected by means of tutional conditions to operate illegally Ministry of Micro-, Small and Medium a stratified random sampling method. because they are excluded from the Both the five informal business catego- Enterprises (MMSME) embarked on a mainstream economy by obstacles ries (commerce and trade, manufactur- reconstruction exercise in July 2005. The imposed by the system (Chirisa, 2009: ing and processing, transportation and government’s reconstruction exercise 66-67). communication, services and construc- encountered serious shortages of tion) and the five operating spaces financial, human and capital resources. 5. RESEARCH METHODOLOGY: (including the CBD, industrial centres, The operation was never planned and RESEARCH DESIGN, transportation centres, suburban shop- no resources had been put aside for ping centres and residential areas) were DATA COLLECTION AND the exercise (Gumbo, 2005). To avert divided proportionally before the actual ANALYSIS TECHNIQUES the disastrous consequences, the city of study units and sites were selected. The study employed a cross-sectional Content analysis was used to analyse Bulawayo started rebuilding the vend- case study survey research design to data qualitatively and a map of the ing sites and informal markets with the understand the operations and location city showing common areas of informal support of other local stakeholders.

3 The perspective views the regulatory frameworks as too stringent for the informal operators to comply with and need to be adjusted and made realistic (de Soto, 1989).

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7. RECONSTRUCTION STRATEGIES space to allow more role players to join great deal needs to be done in order to FOR THE INFORMAL ECONOMIC it in identifying profitable areas in which improve the plight of informal traders. SECTOR IN BULAWAYO the informal sector could operate. As a result entrepreneurs in the private sector 7.3 Strategy 3: Training of informal Since the Zimbabwean government’s such as shopping complex developers operators launch of Operation Restore Order and private individuals participated in (ORO) in May 2005 in all urban centres, opening up new markets and operating The Ministry of Micro-, Small and the informal economic sector in spaces for the sector. The local author- Medium Enterprises (MMSMEs) was Bulawayo has undergone significant ity started constructing market stalls for established in July 2002 after the transformations and growth. An array informal business operators; some of realisation that investment levels in of strategies were adopted by the these stalls are still under construction. the formal sector can never suffice Bulawayo City council to rebuild the A sizeable number of new flea markets to generate sufficient employment to informal economy. The approaches were opened up in the CDB in addition absorb the 300,000 school leavers on an can safely be referred to as the city’s to those that had been destroyed dur- annual basis. The Ministry of Industry and attempt to adopt “a total package” ing the earlier operation. Besides open- International Trade (MIIT), in conjunction to ensure that the informal operators ing up some streets for trading during with the Ministry of Youth, Development were restored to their original posi- weekdays, the city also legalised and and Employment Creation (MYDEC), tion or even a better one. The article promoted informal trading, particularly introduced this ministry to map out discusses the five most crucial elements during weekends, a clear sign of how strategies to address various obstacles of the strategy aimed at rebuilding the the city has endeavoured to rebuild facing the small-business operations informal sector in the city: the identifica- and promote a once neglected sector. (Gumbo, 2005). Therefore, the main tion and allocation of operating spaces; aim of the Ministry is to generate jobs, the provision of infrastructure on the 7.2 Strategy 2: Infrastructure reduce poverty and stimulate growth sites; the training of informal operators; development for the purposes and ownership of investment as a the marketing of their products, and of operating informal way of improving the well-being of all Zimbabweans. Besides other business the financing of their operations. The businesses strategies and the relevant stakeholders training sessions organised by private involved in implementing them are The other strategy was the provision businesses and non-governmental illustrated in Figure 1 and are discussed of infrastructure for new markets and organisations for informal operators, in the subsequent paragraphs. reconstruction of infrastructure of dis- this Ministry mostly organise and train informal business operators in the city of Bulawayo. The employees of the Land-use planning by the Ministry and training facilitators were BCC professionals (town planners) first trained by the International Labour Organisation who, in turn, train informal business operators and people who later become trainers. Most of the training sessions focus on business Financing informal business Strategies for recon- Infrastructure development management, cash-flow management activities by the SEDCO and MFIs structing the informal by the BCC, MLGPW&UD, private and marketing. One of the challenges sector in Bulawayo institutions of the Ministry is the shortage of funding to reach out to most informal business operators across the city. It appears that both central and local government increasingly realise that the formal Marketing and exhibiting Training of informal busi- sector is unlikely to generate sufficient of products and services by the ness operators by the MMSME employment opportunities because of MMSME and associations the high capital investment required to start a business in the formal sector compared to the informal sector Figure 1: Strategies for reconstructing the informal economic sector in Bulawayo and other challenges faced by big businesses.

7.1 Strategy 1: Identification and mantled markets. In certain instances, 7.4 Strategy 4: Marketing of allocation of informal sector the Bulawayo City council entered into informal sector products and operating spaces a partnership with the private sector to services develop flea markets for the purpose Besides training, the Ministry also helps The local authority relaxed conditions of accommodating informal traders. informal traders market their products for the location of informal sector enter- Although the city council has been at within the country and in neighbouring prises. Traders now had access to areas the forefront of providing infrastructure countries such as Botswana and South that were previously forbidden such as for informal operators and encouraging Africa. During exhibitions such as the shopping complexes in low-density or private businesses and individuals who Zimbabwe International Trade Fair (ZITF), high-income areas, some parts of the also own informal markets to do so, the Ministry organises informal producers CBD and areas that were previously infrastructure is either not present or designated for formal and productive and facilitates the display of their wares not functional in most markets and a industries only. The city opened up at the Ministry’s stand. During the 2011 chapter of the ZITF in Bulawayo, an

58 Gumbo & Geyer • ‘Picking up the pieces’: Reconstructing the informal economic sector in Bulawayo, Zimbabwe exhibition by disabled informal women 7.5 Strategy 5: Financing informal for the little funds with registered producers from the Zimbabwe Women business co-operatives and small- and medium- with Disabilities won accolades. This scale enterprises since the latter are The Small Enterprises Development placed them in the limelight and helped eligible to apply for funding. Previous Corporation (SEDCO), a quasi-govern- marketing their products in the local studies in the sector corroborate these mental authority that falls under the and regional market. Other organisa- findings, observing that the urban poor MMSME supports small-scale informal tions also participate in marketing who run informal micro-enterprises get businesses financially by disbursing the the urban poor’s products in the city. raw deals from the Small Enterprises Productive Sector Fund (PSF) and the These include the Cross Border Traders Development Corporation (SEDCO) Small, Micro- and Medium Fund (SMMF) Association that finances those who as they keep receiving false and to businesses involved in adding value produce and wish to sell in neighbouring empty promises of financial support, regardless of the sector in which they countries with pre-paid bus and airline particularly prior to elections, while in operate, be it agriculture, mining or tickets in conjunction with a local bank. fact the funds are hijacked by the same The Zimbabwe Chamber of Informal small business sector (Gumbo, 2005). politicians who run their own businesses Economy Association (ZCIEA), besides However, most small businesses fail to (Chirisa, 2009). lobbying the city council for the alloca- secure and benefit from the financial tion and improvement of operating assistance promised by the Ministry due Most micro-financial institutions, particu- spaces on behalf of informal operators, to a lack of collateral security and other larly those run by individuals, tend to also assists traders with strengthening conditions that demand money and suspend their operations due to short- old and opening up new markets locally too much effort and expertise before ages of loan finance, whereas a few and internationally. The exhibition centre securing the loans. The corporation is that are owned by established private in the city centre organises informal also underfunded by the government banks still have stringent regulations and producers and brings their products as it is chronically without money to lend numerous demands that scare away from often distant operating places that to those applying for funding. Most in- informal businesses. Efforts have been are inaccessible and not very visible to formal businesses that are normally not made to encourage the operation of a central and convenient place in order registered (although licensed by the city Micro-Finance Institutions (MFIs) in the to boost their market and image. of Bulawayo) find it difficult to compete city by issuing operating licenses by the Reserve Bank of Zimbabwe (RBZ) and operating places by the city of Bulawayo. However, the informal operators have not been receiving much service from these institutions and have to depend on unscrupulous money lenders and sharks apart from their own savings and loans from relatives and friends that are very small. Instead, the city should consider operating a micro-finance institution that will be able to reach out to informal traders and producers (Gumbo, 2010b). This will help to weed out or reduce the operations of illegal and unregistered money lenders who charge informal entrepreneurs very high interests rates and confiscate their properties if they fail to service their loans. The other strategy that the city of Bulawayo has adopted is to strengthen social networks among the informal operators through the various associations and representatives of the urban poor. Examples of these are the Bulawayo Upcoming Traders Association (BUPTA) and the ZCIEA.

8. INFORMAL BUSINESS CATEGORIES AND LOCATION Like any other urban centre in the country, Bulawayo boasts a wide variety of informal economic categories that are characterised by a heterogeneous and diverse array of activities that range from trading in petty commodities such as cigarettes, biscuits and sweets Figure 2: Location of informal business activities in Bulawayo City to manufacturing and processing of

59 SSB/TRP/MDM 2011 (59) big items such as furniture and food Beijing in China, and from other neigh- most common type of informal eco- products. The informal business catego- bouring cities such as Johannesburg in nomic activity in Zimbabwe is the selling ries can, however, be reduced to five South Africa, Maputo in Mozambique of various products (Gumbo, 2005; without missing any activity or losing and Francistown in Botswana. The CBD Kamete, 2004: 122). Table 2 summarises any significance: trade and commerce; has remained the favourite place for the common factors that influence the manufacturing and processing; services; informal businesses that trade in fruits location of various informal business transport and communication, and and vegetables, clothing and footwear, categories in Bulawayo. These are construction. Five common places of transport and communication, and supported by research findings that location of informal businesses are the services as it receives large numbers reveal the influence of heterogeneity CBD and its fringes; suburban shop- of customers during the day. Table 1 of activities and their requirements in ping centres; transportation centres; depicts the five business categories, the choosing operating spaces besides industrial centres, and residential areas. common activities associated with the zoning of land by the local authority. At all these locations, enterprises by and categories, and the common places Another category that has always domi- large tend to operate along roadsides where the activities are found. nated informal sector businesses is small- and open spaces. It was found that, However, shopping centres have also scale manufacturing activities such as although the five categories of busi- proved to be competitive, especially in carpentry, welding, building materials nesses can be found nearly everywhere providing trading places in both fruits production, crocheting, arts and crafts in the city, they have their favourite sites and vegetables and clothing, as they and tailoring. However, this has been or areas of operations. The favourite locations include the streets in the receive a large pool of customers. As overtaken by trade, and particularly the CBD, suburban shopping centres and businesses pulled out of the CBD, some selling of consumer products that have transportation centres. Figure 2 is a map new and old trading informal enterprises become fashionable. These findings are of Bulawayo that shows the location of followed suit and have been properly also supported by literature on informal most informal economic activities in organised in markets near the centres businesses in Zimbabwe. For instance, the city. and normally very near to a transporta- Chirisa (2009) observed that the other tion facility. The findings are confirmed dominant informal business category These findings are supported by by previous studies observing that the is the manufacturing businesses that literature. Informal businesses in Zimbabwean cities, including Bulawayo, Table 1: Categories of informal economic activities in Bulawayo favour five operating spaces or busi- Business category Common location Description of common activities ness workplaces: covered markets; Trade and commerce Mostly in the Foodstuffs, small household goods, residences; shop pavements; roadsides, CBD and fringes, confectionery, cigarettes, vegetables, fruits, transportation books, clothing and footwear, sale of plastic and private sector premises (Chirisa, centres, suburban bags, cosmetics, appliances and accessories, 2009; Gumbo, 2005; Kamete, 2007). shopping centres spare parts, curios, building materials, crafts, Differences in the locations of clusters and residential maize meal and other grains, hair products and of informal businesses between 1999 markets traditional medicines and the present can be attributed to Manufacturing and All places, but mostly Carpentry, welding, machining, leather processing at home industries products, brick moulding, pottery, detergents the fact that informal businesses have production, sculptures; carving, textile and become much more proliferated now apparel, tailoring and design, food processing than a decade or more ago. Studies such as peanut butter, poultry and chicken after the new millennium show that dressing, bakery, freezits, biscuits and cakes these informal activities have invaded Personal services All five places, but Hair and facial care, car and electronic repairs, some new places, including the CBD. mostly in the CBD typing and photocopying, nursing services and financial services Chirisa (2009) identified three preferred operating places: the neighbourhoods, Transport and All five places, Commuter and taxi services, internet, phone communication but mostly at shops, faxing, pushcarts industrial sites, and the CBD. It was transportation pick- observed that trade and commerce up points and CDB are the dominant business category as Construction Mostly in residential Bricklaying, plastering, tiling, roofing, painting evidenced by large hordes of vendors areas and plumbing, electrical installations who sell fruits and vegetables and other consumables that are sourced from Table 2: Factors affecting the location of business categories fruit and vegetable markets or directly from farmers. Trade in both new and Business category Factors (in order of importance) second-hand clothing and footwear Trade and commerce Proximity to market/customers, operating space, goods for sale, is common in the CBD and residential transport, utilities (water) and job opportunities (huge formal orders) areas; these goods are sourced mainly Manufacturing and Access to adequate operating space, utilities (electricity and water), processing proximity to raw materials, job opportunities (subcontracting), transport from neighbouring countries such as and proximity to market/customers Mozambique, South Africa, Botswana, Services Proximity to market/customers, operating space, utilities (electricity and Zambia and Namibia. Another form of water), raw materials, job opportunities (huge orders) and transport trade, although not as common as the Transport and Proximity to market (commuters/customers), operating space, utilities two mentioned earlier, is trading in elec- communication (electricity), job opportunities (hiring out of vehicles), availability of trical and electronic gadgets such as necessities (e.g. fuel) televisions, computers and accessories; these are imported from cities such as Construction Proximity to market (building clients), raw materials, transport, Dubai in the United Arab Emirates (UAE), subcontracting (building contracts)

60 Gumbo & Geyer • ‘Picking up the pieces’: Reconstructing the informal economic sector in Bulawayo, Zimbabwe involve carpentry, tailoring, food 9. IMPLICATIONS FOR the planning system in Zimbabwe is manufacturing, leather products, shoe- THE PLANNING SYSTEM notorious for its uncompromising nature, making, welding, and arts and crafts. IN ZIMBABWE rigidity and conservatism (Kamete, These product lines hold the advantage 2007: 154). Maintaining a tight grip of normally allowing operation from The findings reveal how the planning on rational problem-solving, planning places that fulfil the twin objectives of system has metamorphosed to keep systems that derive their justification producing goods and directly selling up with changing circumstances and from the use of scientific knowledge in these products to customers. Home how it has helped to revolutionise the order to enhance standards of living industries proved to be ideal places for vendors’ struggles by organising and and orderly environments lead to manufacturing and processing products mobilising them in order to revive the massive destruction and demolition of informally. They are pulled by networks indispensable informal economy. The developments that are considered unfit. of providers of raw materials and are informal economic sector reconstruc- In countries such as Zimbabwe where targeted as subcontractors by busi- tion programme, adopted by the the central government is politically nesses near industrial sites, particularly Bulawayo City council with the support powerful and can order local govern- at the CSC complex and at the Kelvin from other stakeholders after the ruth- ments on any actions to be taken, industrial sites. It is worth mentioning that less and destructive operation, paints a planning professionals and the planning the majority of large manufacturing bright picture for the future of planning system can seldom be used to carry companies divested since the 1990s as it demonstrates the flexibility which out and justify the centre’s decisions and most spaces such as the CSC sites the system can achieve in attempts to in the name of orderly development have been portioned to accommodate adopt newer and practical approaches (Kamete, 2009). Although it was evident informal businesses. to dealing with unprecedented urbani- that the operation had nothing to sation and high poverty levels, the criti- do with planning and was chiefly The dominant services are hairdressing, st cal 21 century issues in the urban south conducted to safeguard the then ruling photocopying, typing, and repairs of (Watson, 2009: 153). Previously, the party ZANU PF’s political interests and cars and electrical gadgets. Financial Zimbabwean planning system failed to security in urban areas, the government services are very scarce as most money respond to statutory adjustments to the maintained that its operation had been lenders have closed shop due to short- stringent planning legislations, a case conducted to deal with activities that ages of loan finance. The other cat- in point the Statutory Instrument 216 violated planning laws and threatened egory of informal economic businesses of 1994 (Regional, Town and Country public health, safety and environmental is that of construction where operators Planning (Use Groups) Regulations) that protection and sanitation (Kamete, specialise in plumbing, painting, brick- legalised the setting up and operations 2007). By conducting the operation in laying, flooring, concrete crushing, brick of economic activities in urban residen- a disorderly manner, particularly the and block moulding. This category has tial areas that were previously outlawed issuance of only a single enforcement been heavily suppressed by economic in such areas. During these years of order a week after the operation was hardships in recent years but there hardships due to ESAP, the ordinary already underway; the Zimbabwean are signs of its improving in residential urban poor, out of lack of options, government violated its own planning construction initiated by government proceeded to transform residential laws and regulations to justify its destruc- under the banner of Operation Hlalani suburbs in order to accommodate their tive operation (Kamete & Lindell, 2010: Kuhle/Garikayi housing reconstruction informal economic activities and the 898-900). The provisions of the RTCP Act programme. The last category that work of politicians who encouraged that stipulates that such an order can has recovered since the days of the the operations of informal businesses in only become operative one month economic crisis is transport and com- order to empower the disadvantaged after it is served were violated (Kamete, munication. Failures by the mainstream majorities economically (Kamete, 1999: 2007: 162). It is, therefore, clear that formal economy to provide adequate 144). The built environment profession- the traditional planning system is open and reliable transport and communica- als, particularly urban planners, mostly to abuse by those who are politically tion means opened up avenues for the continued with their old principles of and economically powerful. These informal sector to rise up and close the designing and layout preparation with- power-obsessed politicians seldom use gaps. Common in the CBD of Bulawayo out incorporating the new changes that urban planning professionals to achieve are individual-owned and unregistered were supposed to promote informal their selfish interests such as the eviction taxis plying various suburbs as well as economic activities for the empower- of the poor and politically agitated in telephone shops and Internet cafes. ment and improvement of the urban urban areas. Most of these informal activities operate poor. The professionals’ laziness cannot from central business districts mainly be blamed on the urban poor, politi- Against the backdrop of widespread because of centrality and the existence cians or legislators but on the planning evictions and demolition of the urban of a diverse customer base. However, system and planners (Kamete, 2009). poor and their means of livelihoods, other businesses that operate outside Although it has repeatedly been proven planning systems have a great deal designated sites and without licenses that strict and continuous adherence to learn from the reconstruction face constant harassment and their to the physicalist perspective of town programme being undertaken by the wares are confiscated by municipal po- planning against the backdrop of Bulawayo City and immediately adopt lice. Only those who operate from flea mismatches between economic and new and innovative approaches to the markets and designated streets and urban population growth is no longer profession such as community participa- who pay licence fees enjoy the support possible, national governments still raise tory planning, integrated development and approval of police and, therefore, spatial order above social processes planning, urban management pro- conduct their business activities peace- and reality in order to achieve their grammes and strategic planning, which fully and generate reasonable incomes. selfish political agendas. Generally, positively lead to poverty reduction and

61 SSB/TRP/MDM 2011 (59) inclusiveness (Watson, 2009). This greatly very few micro-finance institutions in land uses as residential, commercial, cautions current planning practice in the city and the few that are currently industrial, recreational and community the global South against its continued offering loans are run by banks and have no place for the informal sector application of traditional systems and therefore have stringent requirements. in Zimbabwean urban centres. Of apparatus that are ineffective in ad- A few independent MFIs in the city course, piecemeal modification of town dressing current and future urban issues have suspended their activities due to planning regulations and statutes to try which have been greatly transformed a shortage of loan finance. The govern- and accommodate the informal sector, and are totally different from the earlier ment-owned SEDCO also experiences as was done in the 1994-Statutory concerns that planning sought to solve a similar problem: not enough funds Instrument 216 which sought to inte- at its birth. Most local authorities have for a multitude of applicants. Besides, grate home and work, has hardly been autonomy in making land-use planning it has too many demands such as implemented in its entirety. Inadequate decisions in line with national planning payment of non-refundable application space and amenities were also identi- legislations, and their local planners can fees and submission of business plans fied by the ILO/SATEP studies in 1984 handle planning controls and regula- with cash flows and other documents (Brand, 1986). Dhemba (1999) observed tions within the city’s jurisdiction. Such that cannot be met by almost all the that informal operators ultimately oper- autonomy and power call for pro-active informal entrepreneurs. These findings ate without licenses on undesignated stances on local planning authorities are confirmed in several previous studies sites, since in most cases they fail to fulfil in carrying out their rightful duties to in Zimbabwe. It was found that informal the required regulations and register plan, legislate and regulate the use of business operators lack access to credit their businesses or get licensed. These land to accommodate the poor and or finance (Kamete, 2004; Mupedziswa scenarios still persist. Many traders oper- their activities in an orderly manner, thus & Gumbo, 1998) as banks are unwilling ating on undesignated places is partly eliminating the need for central govern- to cede loans to businesses without the fault of the city authority that fails ment to intervene, abuse planning, and reliable income and demand collateral to provide spaces for the entrepreneurs justify and advance its selfish ambitions security, high interest rates and short and not operators attempting to avoid (Kamete, 2009: 902-907). repayment periods which negatively paying license fees. affect their stock levels and capital Lack of jobs was also raised as the main equipment (Brand, 1986; Mupedziswa, 10. CHALLENGES OF THE challenge faced by those specialis- 1991). RECONSTRUCTION EXERCISE ing in construction activities such as Although the city authorities have gone bricklaying, painting, tiling and roofing. Informal sectors entrepreneurs cited stiff out of their way to try and increase Although the economy is showing some competition as their main challenge, the amount of trading space for the signs of improvement in response to particularly those specialising in trading informal sector, insufficient trading political and economic order brought fruits and vegetables and clothing and spaces with sufficient infrastructure by the Unity Government between footwear. The competition is mainly remain the main challenge facing the former ruling ZANU PF Party and the result of over-subscription of sellers informal merchants. Most trading the former main opposition MDC party in these activities as they are found in spaces are not sheltered from natural in February 2009, it is still struggling to all parts of the city from the CBD to the weather elements and have no running support non-direct consumption-related residential areas. Another category water or functional toilets. This problem industries such as construction (Gumbo, that faces tense competition is that of is compounded by shortages of finance 2010a). The only few projects that operators who increasingly specialise in particularly affecting the local authority are sometimes available are found in textile and apparel that are affected that owns most of the markets and low-income housing programmes that by competition from cheap goods weak monitoring and follow-ups on were initiated by the government in imported mainly from Asian markets private markets that are provided either 2005 after the operation, and these and second-hand clothing from by companies or individuals. These find- are mostly very small and not paying Mozambique and Zambia. Transport ings are corroborated by Brand (1986) adequately. providers also face competition as who found that most informal businesses there is over-subscription of commuter face environmental problems due to transport on all the routes to the various 11. CONCLUSION AND lack of adequate shelter. Most of them residential suburbs. This leads to those WAY FORWARD are exposed to rain, sun, wind and dust, owning slightly bigger vehicles that can and the inadequacy of operating in This article demonstrated the resil- carry ten people or more to transfer an open-air, unsheltered work space. ience and resurgence of the urban their operations to inter-city routes. Most Similar problems facing the informal informal economic sector and how previous studies identified stiff competi- sector in the 1980s are still plaguing the the Bulawayo City council has been tion as one of the toughest challenges sector. Shortages of storage facilities trying to help it getting back on its informal operators face due to the over- and insufficient infrastructure and feet again after its destruction by the provision of certain product or service funding force operators to pay more for government-sponsored OM. Although lines. Of course, globalisation and the storage at adjacent formal businesses some efforts have been made by vari- opening up of economies to the outside or in the form of transport taking their ous stakeholders to support the sector, world, starting from the days of the goods home every day. However, much a great deal still needs to be done to structural adjustment periods, also play remains to be done to adequately help the business units grow in size and a role (Dhemba, 1999; Gumbo, 2005; adjust the British-modelled urban graduate to become small businesses Mupedziswa & Gumbo, 1998). planning system to suit local conditions. as opposed to continuous growth in Second is the critical shortage of capital Potts (2006) and Kamete (2006) suggest quantities as new businesses are added to run or expand businesses. There are that the zoning and classification of everyday to the long list of activities. In

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