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Sikhulekelani Moyo, Business Reporter
Bulawayo Vendors and Traders Association executive director Mr Michael Ndiweni has reiterated the need for informal traders to decongest the central business district and utilise facilities in various suburbs.

Mr Ndiweni said the city has several decent shopping malls in areas such as Nkulumane, Entumbane and Cowdray Park.

“We have been unequivocal that the local authority must designate sites to eliminate such conflicts, and informal traders need to embrace disruptive ideas around decongestion of the CBD, creating new business hubs in townships,” he said.

“There are decent facilities in malls like Nkulumane, Entumbane or Cowdray Park. Entities such as banks, big supermarkets, fast food outlets, and money transfer agents must be encouraged or incentivised by private property owners working with the Government to move ‘back’ to these areas.

“Informal traders also should not agree to be abused by space barons who appear to foment and encourage some unsuspecting informal traders to trade from undesignated sites through extorting reportedly US$1 per day promising them protection while creating a mess and conflicts in the city.”

Mr Ndiweni said established businesses should introduce packages that will attract informal players to buy from them in the process expand their client base.

The growth of the informal sector has left legal businesses feeling the heat as some sell their products in front of established shops which has created a stiff competitive environment.

This has resulted in many legal businesses being closed hence a need to create packages that suit the informal players.

“The closing of established shops can be attributed to macro-economic challenges, the decline of formal jobs leading to increased informal businesses who ordinarily don’t meet the requirements to open accounts,” said Mr Ndiweni.

“Our view is that there is a need for shops like Edgars to tailor its packages to be also attractive to informal economy workers because this is our new reality.”

He said this following the closure of the clothing chain store Edgars opposite Tredgold building in Bulawayo.

The informal sector has since been growing as many people try to make ends meet but representatives of the sector are saying that the growth of the sector should not contribute to the downfall of established businesses.

Edgars closes Retail Outlet

The initiative to introduce packages for the informal sector seems to be gaining momentum as some organisations have already started to engage stakeholders on such issues.

The National Social Security Authority recently announced that they are introducing informal sector schemes, which will provide services to the informal players suitable for their kind of business and income.

The idea has been positively welcomed by small and medium enterprises representatives and will allow informal players to plan for their retirement. — @SikhulekelaniM1