COUNCIL TARIFF HIKE: VENDORS CRY FOUL:
Harare City Council’s curious relationship with vendors is set to take a new dimension as the city fathers recently proposed an increase in daily tariffs.
THE suggestion struck a raw nerve among the vendors who want the tariffs scrapped instead. The proposed tariff increase will result in vendors operating from council stalls paying $3 per day up from $1.25.
The increase comes at a time vendors have been complaining about diminishing profit margins in the current cash crisis, which has not spared any sector in the country.
Ferison Chigaba (34) who sells clothes and textile materials at Fourth street market, questioned the logic behind paying rates while illegal vendors make profits at their expense.
“To be honest, being a registered vendor with the city council is not bringing us any benefit because illegal vendors are still being allowed to operate,” he said.
Comparatively, an illegal vendor has costs advantage and consequently can charge less for his wares.
“It is becoming difficult for me to make any profits because we are competing with people who sell the same products but have less costs,” Chigaba said.
He feels the council is not being sincere in its execution of duty and thinks that they should stop asking for tariff increases until they weed out illegal vendors.
“In the middle of the month it is very difficult to pay taxes, so the fact that they are proposing to increase it from the $1.25 to $3 means that we are going to be left with very little to take home,” he said.
Shyline Chimuko who plies her trade at Copacabana said if the tariff hike was effected, she may consider other ventures other than vending.
“The increase is exploitation at its best, how do I make profit when I give council all the profit that I make?” said Chimuko.
“The apples I am selling are going for $11 per box in Mbare then after sales I get $14 from each box. It’s clear I’m working for council,” she said.
Chimuko suggested that markets be centralised and organised.
“It’s better we go back to the old system when markets were centralised. Back in the day we knew that vegetables were bought at such and such a place as well as other products,” said Chimuko.
The informal sector has been suffering in the wake of cashless transactions as they have not been furnished with swiping machines.
Cliff Chitsiga who sells snacks and airtime said the prevalent payment system crippled the progress of his business.
“We are affected by cash shortages. The goods we have are difficult to sell using swipe or mobile payment. It is now difficult to raise money to purchase the products I sell, worse paying city council $3,” he said.
He added: “There is need to consult vendors’ associations before imposing taxes on us so that we know what they want the money for.”
Questions were asked over the council`s diligence in handling proceeds from vendor tariffs.
“We do not have tables, clock rooms and toilet facilities which they should be channelling the money we pay to cater for. I wonder what they use the money for because we have never experienced any change,” he said.
He urged city council to ensure that every vendor is catered for in terms of working space.
Harare Residents Trust Director, Mr Precious Shumba said vendors needed to be treated like any other citizen.
“Vendors are residents who have no formal jobs, who are parents with children in need of fees, health care and want to sustain their livelihoods,” he said.
Policies and perceptions have not helped vendors in their plight.
“These residents are called vendors to take away their value as citizens .The vendor tag upon them makes them criminals, illegal and with limited protection of the laws governing the operations of local authorities” said Shumba.
He said the legality and illegality of a vendor was socially constructed because everyone needs to earn a living.
“The growth of society is an indicator of magnitude of poverty. Residents are struggling under social economic burdens and their presence everywhere is manifestation of poverty.
What hinder the vendors are unfavorable policies, processes and institutions,” said Shumba.
Harare city council recently raked in $800 000 from vendors operating within its markets.
Questions have been asked on whether the money is being put to good use.
With a huge wage bill that gobbles most of its revenue, vendors are not convinced that their money will be directed to infrastructure development in their working spaces.
Harare City Council corporate communications manager Mr Michael Chideme said the tariff increase would benefit vendors.
“The informal sector should be self-funding; we raised vending fees to $3 a day from $1.25 so that we raise enough money for the provision of infrastructure,” he said.
There is promise of facility development and refurbishment.
“A percentage of that money will be used for construction of storage facilities, toilets and more markets,” Chideme said.
He urged the informal sector to embrace technology for ease of business.
“There is a shift in the vending system, vendors are following traffic which somehow goes to an extent of harassing and nagging the customer. Normally, it would be the customer going to the market not the other way round,” said Chideme.
Emphasis was placed on sanity, respectful interactions between vendors and their constituents.
“We want our markets to be tourist attractions, where our tourists visit.
The plan is to have organised, centralized and specialised markets. These vendors should have phones and wifi so that they market their goods from wherever they are considering the changes in technology,” he said.
Responding to concerns about illegal vendors, Chideme said council was working on accommodating all vendors, registered and unregistered.
“There are a lot of designated places for the informal sector. We are in the process of talking to the private sector to turn their closed buildings into an informal sector structure.”
It remains to be seen if Harare will reach world class city by 2025 as projected.
With an estimated 20 000 vendors in the central business district, half of whom are unregistered, Harare has a lot of work to do regain vendor’s trust.
◆ Feedback: advoczah@gmail.com