Johnson Progress

Across Zimbabwe’s urban centres, thousands of tuckshops, backyard workshops, street stalls and home industries continue to operate without licenses, even as municipal police and the Zimbabwe Republic Police step up raids and confiscations.

From Harare to Bulawayo, Gweru and Mutare, vendors are regularly arrested, fined or have their goods seized for trading without permits.

Yet the sector keeps expanding.Economic analysts and traders say the growth is not driven by criminality.

They argue it is driven by a combination of poverty, unemployment, expensive licensing requirements, bureaucracy and the collapse of the formal economy.

Zimbabwe’s licensing framework requires multiple approvals before a business can operate legally.

To obtain a shop license, operators must produce tax clearance certificates from the Zimbabwe Revenue Authority (Zimra), approved trading permits, enabling certificates and pay fees ranging between hundreds of United States dollars, depending on the nature of the business.

For many households, those upfront costs are prohibitive.

A small tuckshop operator in Bulawayo explained the dilemma facing micro-entrepreneurs.

She said, “We are not refusing to obey the law, but the process is too expensive for ordinary people.”

She added that the financial burden starts before any income is earned.

According to her, “Before you even make profits, you are already required to pay hundreds of dollars in licenses, permits and inspections.”

Council regulations confirm the scale of the fees.

According to Bulawayo City Council licensing services regulations, new business applicants must have their premises inspected by health inspectors before obtaining a temporary trading permit.

They must also secure tax clearance certificates and eventually apply for full shop licenses.

The council sets fees ranging from US$345 to US$700 depending on operations.

Some sectors face even higher barriers.

Liquor traders face even steeper requirements, including nearly US$700 for liquor licenses, while vehicle operators, bicycle owners and pushcart operators are also subject to various charges.

Critics say the system was not built for today’s economy.

They argue that the licensing structure was designed for a functioning formal economy and does not reflect the realities facing ordinary Zimbabweans today.

With years of economic instability, currency fluctuations, inflation and widespread company closures, the informal sector now employs the majority of Zimbabweans.

The late economic commentator John Robertson once captured the dynamic.

He observed that when formal industries collapse, survival entrepreneurship inevitably rises.

That desperation is visible in high-density suburbs.

Many illegal businesses are therefore born out of desperation rather than deliberate lawlessness.

In neighborhoods, residents have converted homes into salons, welding shops, grocery stores and restaurants without municipal approval.

Others operate from containers or roadside stalls because formal rentals are out of reach.

A Bulawayo vendor broke down the costs.

He said, “You need rent, licenses, taxes, transport money and inspection fees. Most of us are selling tomatoes, clothes or snacks just to feed our families. We do not have that kind of capital.”

Bureaucracy adds another layer.

Long queues, multiple offices, complicated paperwork and permit delays frustrate entrepreneurs.

The process for other services illustrates the problem.

To transfer motor vehicle ownership, for example, residents must produce registration books, insurance cover notes, proof of residence, police clearances and tax certificates, and pay processing fees.

Similar hurdles exist for many other licences.

Some traders allege that bribes are demanded during inspections or enforcement operations, encouraging them to remain underground rather than formalise.

Urban governance experts say enforcement alone will not work.

A Bulawayo-based urban planning researcher warned that local authorities must understand that informal traders are a product of economic failure.

He stressed that you cannot police away poverty.

His recommendation was to reform the system.

He said authorities need to simplify licensing systems, reduce costs and create affordable pathways into the formal economy.

They suggest special low-cost permits for micro-enterprises instead of commercial-scale fees.

Despite periodic raids and confiscations, illegal businesses remain deeply woven into Zimbabwe’s urban economy, providing affordable goods and services to millions while sustaining entire households.

Analysts warn that unless the broader economy improves, the informal sector will continue growing regardless of enforcement.

For many locals, the choice is stark.

Operating an unlicensed business is not a choice between legality and illegality, but a choice between survival and hunger.

The issue is playing out now in Bulawayo.

The city has approved plans to relocate informal traders operating at the junction of 12th Avenue and Lobengula Street, commonly known as the “Zesasite,” to Lobengula Street Mall (Site 6) in the central business district.

Council said the move targets micro, small and medium enterprises (MSMEs) selling fruits, vegetables, new clothing and second-hand apparel.

Officials explained the background to the relocation.

They said the traders were originally displaced following the temporary closure of the Egodini Terminus redevelopment project, which had resulted in informal activities being moved to various sites, including one along 12th Avenue near Fortwell.