By Kabukabu Kawanambulu Ikwueme
In recent years, there has been a wave of construction, with shopping malls becoming part of the landscape in Zambia and more in the planning phase. For shoppers who like a bit of retail therapy and job seekers looking for employment, shopping malls have been a welcome sight. The same can not be said of those in the informal sector – market traders – who fear that their live hoods may be under threat as consumers flock to the shopping malls, particularly during this season when most markets are literally flooded with rain water. Doing business in most markets across the country is a formidable challenge at any given time. [quote]
The informal sector predominantly found in markets in the sprawling metropolis of Zambian towns, however, provides more employment to a larger segment of the population. Despite this, not much has been done to help improve the working conditions of people in this sector. The structures that have been put in place over the years, are not sufficient to allow businesses to thrive in most markets. It defies logic to expect market traders to continue selling their merchandise in their designated trading areas – with poor drainage – putting their health and that of their customers at risk. This is clearly one of the reasons why most traders engage in curb side hawking, (street vending) forced to sale on the streets.
More needs to be done to help transform the entrepreneurial activities carried out in markets into viable businesses, fully integrated into mainstream economic life. From the look of things, the ruling class has no concept of what life is like for people in the informal sector, who have been systematically dispossessed of the opportunity to have decent work and dignity as human beings. At present, approximately 50% or more of Zambia’s population work in the informal sector. A major overhaul is required to support this sector which generates much needed employment, in a country where job creation programmes are scarce. As more and more people remain excluded from the security of waged or salaried employment, the number of workers in informal employment will rise.
By any law of social science, the present system that allows the vast majority of the population to live and work in sub-human conditions should have disintegrated a while ago. Some how, the matrix of social and economic connections that people have managed to weave independent of the government, ensure most people get food and shelter. Amid the ruins, 20% of Zambians are living fabulously wealthy lives while the remaining 80% just manage to get by. At least 95% of workers in the informal sector still do not earn enough to lift themselves and their families out of poverty.
The need to develop Zambia’s infrastructure to ensure meaningful economic growth takes place, is often talked about but almost never implemented. It’s disheartening to see the informal sector which is part of the rhythm of urban life and provides an insight into our country’s culture, food, smells and sounds being neglected. The state of Zambia’s flooded markets where consumers have to swim to get there, clearly say quite a bit about the management of revenue being collected from the market traders and tax payers as a whole. The traditional ways of earning a living in the informal sector need to be protected and supported particularly at a time when this sector plays an important role in providing employment.
Shopping malls have certainly given our cities a facelift but nothing compares to the African-ness of haggling in the market and the camaraderie that goes on as people interact. Our markets need to be places we can take pride in and entice tourists to visit, for a taste of our culture. In Africa, “when you visit a town and have not visited the market, you have not really visited the town.”
the informal sector or what i call petty trading is over saturated and can not absorbe any more people. historically, this sector cartered for the less affluent in society who supplied wares and food stuff to the working class. with the dwindling of the working class where very educated or skilled people have lost or cant find jobs petty trading remains the only option. informal sector per se should include production of goods and provision of services and not only trading without any addition of value. now every other house has a ka-ntemba because people need to sell.government should provide leadership in creating a more sustainable informal sector in addition to a sustainable formal sector. the informal sector is only an important compliment of a viable formal one not a replacement
What the informal sector lacks is a structure. The informal sector must develop a network and structure that will enable it to thrive. Some of the proposals I make are as follows.
1. Provide liquidity. How? 😕 By having the informal sector form CREDIT UNIONS. Credit unions behave like banks but are more based on the industry or sector. In this case the informal sector. To get loans, you would have to deposit your money in the credit union, you have one vote for the board of directors and the credit union can provide you with cheap credit (if you are part of it). While a commercial bank might offer double digit interest rates, a credit union can provide you with single digit because it is accountable to the people banking with it. [tbc
Another form of liquidity is through the Zambians in the diaspora. Something that I call direct credit. How does this work, well Zambians at home seeking credit can go to a local internet cafe and go to w w w . kiva . com were they will post their business plan and how much they are looking to raise. Zambians in the diaspora can spend 5 minutes from LT to go to w w w . kiva . com and give out a LOAN. This can be from anywhere (even as low as $25.00). When the borrower (Zambian at home) has the business running, he/she can then start making repayments. This is another way of providing liquidity.
2. Acknowledge the importance of property value. Even adding a garden on your property adds value to your property. Everything is put into consideration even including your neighbors and his/her surroundings. High property values can be used as collateral when getting loans from other financial institutions. You can also use property value to buy property at a low price, making improvements and selling at a higher price.
3. Produce a self regulatory system which will lead to the informal sector thriving.
These are just some of my recommendations.
I’m no economist but I don’t agree that the first thing needed in order to develope the informal sector is to provide loans.People should learn to live within their means.The reason I’m not a millionaire at this point in time is right now I do not possess the knowledge or discipline to handle $1million wisely.If you gave me a $1 million dollars today I’ld probably go on a shopping spree instead of investing it.|Secondly Zambians are not good at paying back money.In fact when you lend someone money, instead of paying you back at the appointed time they ask you for even more money next. All the marketeers need is a clean market with good drainage facilities.I’ld rather shop at the market than some mall at least for vegetables.
another interesting observation.Perhaps the reason zambia is the way it is because most people would rather discuss petty issues. look how many comments an article on nightclubs has and look how many there are on this thread.we are no different than the leaders we are fond of condemning.
Markets and marketeers do not define the informal sector. They are only part of it. If anything they are simply traders who do not produce anything themselves.
Customers have a right to get good value for their money. If shopping malls give you a better shopping experience for your money, then go for it. At markets, in many cases the marketeers themselves have a lot to blame for the squalor conditions they trade in. They make the place dirty. The council cannot do everything for them.
We need the marketeers to share the burden of paying tax. They use hospitals, schools and roads that we tax payers pay for. If they dont pay tax, they should not deserve anything, for free.
# 6. That’s a sobering observation. It just shows the calibre of society we have, at least as seen thru LT bloggers. It’s poverty of the mind.
#3 Mr Capitalist.
I lent K10m to a someone with a sound business plan and recommended by my folks. The man disappeared. He left his wife and kids, lodged in some hotel and started dealing in precious stones using my money. Got him arrested but his family pleaded for mercy for the sake of his kids. That’s how we lost our money. Not even a single K1 back.
#9 uk-zed observer unfortunately thats what happens when you lend someone an amount of money he doesnt know how to handle.thats why I don’t think lack of credit is the reason we are poor.Perhaps thats why Dambisa Moyo has a point.
I didn’t know we had people who could blog in a civilized manner. keep it up.
Informal sector should be considered much by the government so as to raise up an economic income,almost 80% of people in developing countries depend on this sector for their survival.
Why cant we start solving our economical problems by identifying the root cause of the problems? I do support the informal sector because it is the only survival now and in the future to come. I support IDDO ‘B’, sure 80% of Zambians depend on this sector since now the economy is liferalised but it needs Government intervention. For example, it is not a solution to chase vendors from the streets; if that is where our fellow Zambians are getting their ends meet, why cant the government provide an evening market for them like in some other countries than chasing them? A revenue for the local government can be created by the levies these will start paying and that can even go towards the cleaning of the streets. The government should be concerned with the welfare of its people.
Why cant we start solving our economical problems by identifying the root cause of the problems? I do support the informal sector because it is the only survival now and in the future to come. I support IDDO ‘B’, sure 80% of Zambians depend on this sector since now the economy is liberalised but it needs Government intervention. For example, it is not a solution to chase vendors from the streets; if that is where our fellow Zambians are getting their ends meet, why cant the government provide an evening market for them like in some other countries than chasing them? A revenue for the local government can be created by the levies these will start paying and that can even go towards the cleaning of the streets. The government should be concerned with the welfare of its people.
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