City rakes in $800 000 from informal traders

HARARE City Council has raked in nearly $800 000 revenue from vendors operating from its markets and is now proposing an increase in tariffs from $1,25 to $3 per day.

According to recent minutes of the Informal Sector Committee in its strategic plan for managing vending in the Central Business District, the $3 per day market tariff would see council realising over $3 million per month.

Last year, the city pocketed a total $1,2 million from the informal traders between the same period of January to May.

Director of housing and social development Mr Edmore Nhekairo said the city markets have great potential.

“The revenue collection for the period January 1, 2017 to May 28, 2017, amounted to $794 789 against a market potential of $2 522 535 for five months period. The 20 percent markets retention fund amounted to $158 957, 80 during the period,” reads the minutes.

“The current $1,25 per day market has resulted in Council operating on a $1 852, 30 loss per month and the proposed $3 per day market tariff increase will result in council realising $3 009,94 surplus per month.

“That council approves the upward review of market tariff from $1,25 per day to $3 per day for the temporary weekend flea markets operating along Park Street and Rezende Street in the Central Business District respectively. The increase in tariff will enable Council to breakdown and improve cash inflows.”

The committee said for improved revenue collection, illegal traders should be relocated to the newly identified market sites.

They also noted that district officers should ensure that all guarded car parks pay their rentals to council.

“(The committee resolved) That the finance director (Mr Tendai Kwenda) submits a report on 20 percent markets fund retention on amounts realised for infrastructure developments and the challenges being encountered,” read the minutes.

“Strategies such as introduction of weekly enforcement blitz, payment plans, repossession of defaulters market stalls, termination of defaulters lease agreements should be put in place.”

The CBD has a carrying capacity of 10 000 vendors with an estimated 10 000 excess vendors operating illegally in the streets.

Traders are deserting market sites citing exorbitant charges.