Zimbabwe: Don’t mess with the informal sector

The shock is perhaps greater in Zimbabwe, as in the past the ‘formal’ sector was larger and stable, where ‘jobs’ and ‘wages’ were expected, especially for men at a certain age.

But the post-structural adjustment growth of informality is a phenomenon everywhere; and is accelerating, especially in countries where reliance on a core commodity sector was the economy of the past.

Thus the informal sector – a huge and massively varied category – represents a very substantial proportion of Africa’s economic activity.

In the rural areas this has always been the case – small-scale farming dominates and rural dwellers have always engaged in a bricolage of activities, both on and off farm.

Today such complex livelihoods are the norm in town too. The jobs of the past – in the factories, mines, farms and so on- no longer exist – or may do so only temporarily – and the alternative is a set of activities that don’t fit the past expectation of a ‘job’ or ‘employment’, and are so not counted as such.

In Zimbabwe, the informal sector is the economy today: it cannot be ignored, wished away. It is what the 90 percent live on, but we know little about it, and policies often upset and disrupt, rather than support and nurture.

So it is no surprise that the arbitrary import controls imposed were resisted when the blunt Statutory Instrument 64 that appeared to ban the import of everything from mayonnaise and coffee creamer to body lotion and building materials – was imposed (although hurriedly amended later).

 In the name of domestic manufacturing protection, the livelihoods of many thousands of traders who bring goods from South Africa were affected; no wonder they were angry.

Ever since Keith Hart wrote about Africa’s informal economy long ago, many people have pointed to its importance.

In recent years, there has been a growth in scholarship that has attempted to grapple with the economic, social, cultural, political and geographical dimensions of informal economies, such as the excellent work of Kate Meagher in Nigeria and more broadly.

But in public policy, statistical data collection and media commentary, the new real economy in so many places has been ignored, or dismissed and berated. Responses have been inappropriate too.

Formalising the informal is not the point, and attempts at converting everything into a projectified ‘small enterprise’ are misguided.

Controlling and regulating will not work, and will be resisted, sometimes violently.

And yes, while much activity is outside the ambit of the state, and not taxable, it is the lifeblood of the economy – and certainly is in Zimbabwe.

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