HLB works on harmonising formal and informal business operations

Staff Reporter

HWANGE- Hwange Local Board (HLB) is working on creating a conducive environment for both formal and informal business players to operate from.

HLB Town Secretary Pastor Ndumiso Mdlalose said the Covid-19 induced national lockdowns led to the sprouting of numerous informal traders in virtually all suburbs within the local authority’s area of jurisdiction as well as the country as a whole.

“If you look at the entire country, the outbreak of Covid-19 and subsequently imposition of lockdowns saw shopping areas being seriously limited and shops opening for a very short period, thus most people started selling goods from all corners,” he said.

The business community has since the beginning of the year raised concerns of unfair competition from informal traders accusing them of denting the profitability of their enterprises. Since the advent of Covid-19 there has been a tremendous surge of unregistered shops as well as individuals selling goods from their backyards. The outcry from the business community prompted HLB to raid vendors that were selling their wares by the roadsides and at homes without licenses.

“As a planning authority we must always respond to what we see as an impediment to development and service provision. We have already moved in to stall certain types of informal trading through our security details. However, what’s important is that, when Council police are moving to enforce the law, they should be protected by the Zimbabwe Republic Police,” said Pastor Mdlalose.

 He added that Council was in the process of introducing a raft of measures and by-laws aimed at creating an enabling environment for businesses to operate. “There must be bye-laws relevant to that (informal trading) situation and to deal with that particular situation, so that we are not found wanting in terms of the laws of the land. “Right now we are working on a number of bye-laws including policies to that effect. This is coming at an opportune time for us to respond properly with the right instruments or policies to deal with the anomaly,” said Pastor Mdlalose.

Mdlalose, however, said the local authority was not out to eradicate informal sector activities but to formalise their activities.

 “The high presence of informal traders shows that there’s a huge market, so what we need to do is not to kill the informal sector activities but plan for them,” said Pastor Mdlalose.

 He noted that the local authority was working on coming up with decent working spaces for informal business operators. “We want to encourage the development of trading space or places such as incubators, so, that if we remove people from undesignated areas we take them elsewhere, but what should guide us is the effective demand for those facilities as recorded at Council offices,” said Pastor Mdlalose. He further encouraged individuals intending to trade to approach Council so as to enable it to come up with a comprehensive database of people seeking trading spaces.

“Whoever is moved or is being discouraged from trading at their homes should go to Council offices to have their names captured but the unavailability of space at the moment doesn’t mean that someone trades in places that are being discouraged,” said Pastor Mdlalose.

 A shop owner at Empumalanga suburb, Mrs Tariro Mukomana of Mukomana Trading said the existence and proliferation of backyard shops was seriously affecting the viability of her business concern.

“We pay rates and license fees to the local authority including various other statutory instruments to enable us to operate legally yet we are made to compete with people that are operating backyard shops who have the audacity to lower prices because they are not subjected to payment of taxes and licenses,” she said.

 Mrs Mukomana said it was of paramount importance for Council to reign over illegal vendors so as to maintain cleanliness and order in its environs while also protecting citizens from consumption and use of hazardous foodstuffs and substances.

“It’s of paramount importance for a business to register first so as to operate legally. This enables it to maintain the required standards while also making it easy for Council to collect fees. People are now selling various goods at their homes including meat. This is illegal and dangerous to consumers. Over and above all these unscrupulous individuals are not paying inspection fees to Council,” she said.

Another businessperson, Mr Rodrick Hwaire said the local authority should expedite the identification of trading and work space for the informal sector so as to formalise their operations.

 “HLB should identify operating spaces for individuals who intend to sell their wares. This will enable them to pay rates and the requisite operating licenses to Council, which will in turn enable the local authority to improve on service delivery,” he said.