Respina Zishumbe, 68, is a career vendor who operates a small vegetable stall in the Mupedzanhamo market in Mbare, Zimbabwe.  She has never been formally employed, but has managed to raise and send three children - now adults - to school through her vending business.

Zishumbe is part of Zimbabwe’s sprawling informal economy.  In rural and urban centers alike, vendors and street hawkers can be seen traveling from one spot to another on bicycles or using carts, selling an array of wares.  Some set up shops on the sides of busy highways to get the attention of passing traffic, while others have market stalls or informal shops, in both designated or ad hoc locations.  Some even specialize in certain industries, like the mining entrepreneurs who supply small-scale miners with mining supplies, like parts and engines for machinery used in gold mining operations.  

Economists define the informal sector or informal economy as economic activity not included in a nation's gross domestic product data.  Such activity is often not subject to formal contracts, licensing, and taxation. These businesses generally rely on local resources, small-scale operations, and unregulated but competitive markets.  The International Monetary Fund (IMF) estimates that Zimbabwe has the world’s second-largest informal economy as a percentage of its total economy, at 60.6%.

THE RISE OF THE INFORMAL ECONOMY

At the start of independence in 1980, Zimbabwe had a relatively small informal economy.  It accounted for less than 10% of the labor force, and coexisted alongside a formal economy that was highly regulated through national policies.  In the intervening years, however, the formal economy has not kept pace with Zimbabwe’s expanding labour force.   

Zimbabwean economy that relied on mining, manufacturing, farming and exports began experiencing a gradual  decline from the mid  90’s. Government controlled companies were some of the first to fall into mismanagement that led to operations grinding to a halt with many of the workforce being laid off. Iconic companies like Zisco Steel in Kwekwe, the national Cold Storage Commission, the Zupco bus company were some good examples of what led to growing unemployment. 

Harare, the capital of Zimbabwe, is home to two sizable examples of the informal economy.   Mupedzanhamo, where Respina Zishumbe sells her vegetables, hosts hundreds of other vegetable stalls in the high-density location of Mbare.  The Glen View light manufacturing site, commonly referred to as 'siya soo' in the local language, houses vendors of furniture and other household products. 

Manfred Hove, 56, is a career carpenter by profession.  He worked for several furniture manufacturing companies in Harare industrial sites before he was laid off at the height of Zimbabwe’s economic meltdown in 2008.  Hove now operates an informal furniture manufacturing business, High Glen Carpenters, whose flagship product is the “Merlin” range of lounge suites and sofas. He proudly employs five trainee carpenters in his business, many of whom have acquired carpentry skills through on-the-job training. Like most other informal businesses, Hove pays no corporate or payroll taxes, other than the council shop license fee.

On Harare’s prime First Street in downtown, meanwhile, vendors have become a regular fixture - not only on side streets, but sometimes brazenly setting up shop in front of big name retail stores like OKs, Bata, or even Greatermans.  Sidewalks have been converted into open markets. 

 The scene is typical of many locations or suburbs, where makeshift stores supply basics like bread, milk or sugar. These kiosks - typically staffed by one person through an opening and colloquially known as tuckshops —save customers a trip to the regular shopping centers by serving the same basic items found in a grocery store or other retailer.  

Beauty Ribeiro lives in Harare with her husband, a military officer.  She runs a market stall in the downtown area selling mainly children’s clothing.  Because she is self employed, she sets her own hours and selects the merchandise she wants to sell.