THE CITY OF BULAWAYO REVIEWS ARCHAIC INFORMAL TRADERS’ POLICY TO INCLUDE MSMES
The Bulawayo City Council (BCC) has initiated an ambitious process of developing a comprehensive, inclusive, equitable, practicable, sustainable and resilient policy document in collaboration with Friedrich-Ebert-Stiftung Zimbabwe (FES) and local partners to replace the existing informal traders’ policy. The previous policy developed in 2010 primarily focused on the allocation procedures for trading bays, with priority given to child-headed families, female-headed households, and individuals suffering from chronic illnesses. However, its scope was limited to a few sites within the Central Business District (CBD) and shopping centers, excluding other trading locations and key actors in the broader metropolitan economy of Bulawayo. KEY SHORTCOMINGS OF THE PREVIOUS POLICY One of the significant shortcomings of the previous policy was its exclusive recognition of informal traders while overlooking the role of Small and Medium Enterprises (SMEs) in the city’s economic ecosystem. Given the growing importance of MSMEs in local economic development and its huge contribution in the Gross Domestic Product (GDP) that is estimated to be over 70%. According to the 2022 Finscope SME Survey micro, small and medium enterprises contributed USD8.2 billion to the national Gross Domestic Product. The new policy aims to address these gaps and create an enabling environment for businesses of all sizes. WHY IS THE INFORMAL TRADERS’ POLICY BEING REVIEWED? The decision to review and expand the policy is driven by several key factors; 1. Alignment with the MSMEs Section – The BCC established the Micro, Small, and Medium Enterprises (MSMEs) Section in February 2024 to provide strategic oversight and support to small businesses. The policy revision seeks to ensure that the activities of this section are well-integrated into the city’s economic development framework. 2. Inclusion of Other Economic Actors - Unlike the previous policy, which only recognized informal traders, the new policy will incorporate small and medium enterprises (SMEs), ensuring a more holistic approach to business development in Bulawayo. 3. Setting Clear Growth Benchmarks - The policy will outline clear growth benchmarks for micro-entrepreneurs, helping them transition from informal to formal business structures. This will contribute to the sustainability and expansion of small businesses within the city. 4. Supporting MSME Growth - The new framework will introduce mechanisms that facilitate the growth of MSMEs, such as access to infrastructure, financial support, and business development services. By providing a structured pathway for MSMEs, the policy will help unlock economic opportunities and drive disruptive innovation in Bulawayo. 5. Enhance formalisation of micro entrepreneurs - The new policy is envisaged to support the formalization, clustering and aid to deal with taxation regimes challenges faced by micro, small, medium enterprises. It will also help to aggregate and account for MSMEs actors in the City of Bulawayo. 6. Align with the Zimbabwe SMEs Policy This SMEs policies primarily focus on improving access to finance, providing training and skills development programs, facilitating market access through trade shows and public procurement, and promoting linkages between large businesses and SMEs. The MSMEs policy overhaul shall to create a more inclusive and supportive business environment. The policy review also aligns Bulawayo Vendors and Traders Association Strategic Plan for 2023- 2026 which seeks “ To promote the creation of a conducive business environment which recognizes vendors and informal traders, cultivates entrepreneurship, enables access to markets and enhances resilience by 2026”. It ensures that all entrepreneur whether informal traders or established SMEs can thrive and contribute meaningfully to the city’s economy. By Michael Ndiweni Bulawayo Vendors and Traders Association (BVTA) Executive Director Views expressed in this article are mine not that of my organization