Council rakes in $2m from informal sector

HARARE City Council has collected over $2 million from the informal sector against a projected revenue income of over $5 million, with the city citing lack of enforcement and political interference as impediments to reaching its target.

The collection was from markets, home industries and guarded car parks.

According to the recent minutes of the Informal Sector Committee, the city’s housing and social development director Mr Edmore Nhekairo told councillors that revenue collection was expected to increase this year as preparatory work was underway to regularise and revive defunct markets and home industries.

“A total of $2 000 476 was collected from the informal sector during the period January to December 2017 against a projected revenue income of $5 394 653,” he said.

“The main factors that militated against the efficient and effective collection of revenue were lack of enforcement and political interference.

“The committee noted that the following measures were put in place to improve markets revenue collection; identification of more trading sites, ensuring vendors pay rentals directly to council and not through traders associations, introduction of payment plans, establishment of weekly district revenue collection targets and termination of defaulters lease agreements.”

The city also introduced a weekly enforcement blitz.

Mr Nhekairo said it was important for council to provide appropriate infrastructure for the informal sector, saying a 20 percent market retention would finance the development of informal sector infrastructure.

The 20 percent market retention amounted to $400 952 for January to December last year.

“There was no 20 percent market retention funds released for the infrastructure development during 2017,” reads the minutes.

Mr Nhekairo said only 37 percent of the expected monthly revenue was being collected from markets and this was exacerbated by the fact that council was not collecting anything at most markets in the Central Business District, Glen View Area 8 and Siyaso due to intimidation and violent conduct of vendors.

He said the city was hoping that as soon as it gets total control of the markets by erecting tents and carrying out a joint operation with the Zimbabwe Republic Police, revenue would increase.

Mbare Musika (Ward 4) councillor Martin Matinyanya expressed concern that the 20 percent ward retention for Mbare had not been forthcoming, saying this could have been channelled towards development of the markets.

The committee resolved that Mr Nhekairo submits a comprehensive report on the challenges faced when collecting revenue from markets to enable the committee to make an informed decision.