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THE CHALLENGES AND STRATEGIES OF ACCOMMODATING INFORMAL
SECTOR ACTIVITIES IN URBAN DEVELOPMENT
The Case of Mwanza City
A Dissertation submitted in partial fulfillment of the award of Bachelor of Science
Degree in Urban and Regional planning (B.Sc URP)
BY
GOMBO S. G.
UNIVERSITY COLLEGE OF LANDS AND ARCHITECTURAL STUDIES
(A constituent College of the University of Dar es Salaam)
FACULTY OF ARCHITECTURE AND PLANNING
DEPARTMENTT OF URBAN AND REGIONAL PLANNING
DAR ES SALAAM.
i
DEDICATIONThe dissertation is dedicated to my father, the late Dotto Ntunganija Gombo who passed
away in the first year of my study at UCLAS, my mother Mbilizi Kazungu Buganga, and
my brothers and sisters.
ii
DECLARATIONI Gombo Samandito Gombo declare that this dissertation is a result of my own efforts
and findings, and that to my knowledge it has not been presented as a dissertation for any
professional award in any institution of higher learning and or any paper or book
anywhere in the world. So any shortcomings or criticism against this dissertation remain
my own responsibility. My supervisor is not in anyway answerable in this dissertation.
______________________________
Gombo Samandito Gombo
(Degree candidate)
Department of Urban and Regional Planning
UCLAS-Dar es Salaam
_____________________
Kombe, W.J.
Dip URP (ARI)
MA Urban Design (Copenhagen)
Ph.D. Land Management (Dortmund)
(Supervisor)
iii
ACKNOWLEDGEMENTMy first thanks goes to Dr. Kombe my supervisor who has been tirelessly giving me
moral help, directives, comments and critical reading of the text. Without his assistance
the work would have not been conducted well to look as it is now.
I give sincere thanks also to the members of URP staff for their criticism and nice
comments they made during presentation. All these offered a good collective shaping of
my dissertation.
With no doubt, I am extending my thanks to MCC staff. These are the City Town Planner
Mama Ngussa; Luanda A, Massaka, Ntabo from the department of planning for their
provision of material, and giving comments on my work. Community Development
Officers at Mwanza City Council Mr. Mtaki and Mama Iluminata Mwita. These offered
me all the information I required through discussion and written documents.
I am also indebted to the CBEM staff for providing with the necessary material and
photocopy services without which it could render difficulties in my research.
Since I can not thank all people contributed in my work, I generally thank all those who
have contributed in one way or another to the completion of my dissertation
iv
ABSTRACTAs Mwanza City grows, it attracts migrants in search for jobs. But the city’s formal
sector can not accommodate all labour force available in the city. Consequently, people
opt to do their own activities leading to the proliferation of informal sector activities as a
means for earning a living for urban dwellers.
However, much study is needed for informal sector activities. This will help urban
authorities to know the magnitude of the issue and derive means to integrate the sector in
urban development. Informal sector activities have shown and continue to show strong
signs of adaptability, innovation and competitiveness, filling many economic niches left
vacant by large enterprises and providing an important source of income generation, on-
job training and entrepreneurial skills.
The issues in this text are the challenges associated with the operation of informal sector
activities and attempts and strategies to address the challenges and accommodate
informal sector activities.
Case studies are drawn from a broad range of the city of Mwanza. That means, first,
those in new areas (relocated) like Mlango-Mmoja and Sabasaba which are the Mwanza
City Council targets. The second is the Central Business District (CBD) that is highly
demanded by the informal sector operators.
The findings drawn from the case studies are both technical and administrative in nature.
For instance, Strategies for accommodating informal sector such as relocation did not
take into account of locational requirements for informal activities to operate. On the
other hand, Mwanza City Council has not yet fully involved stakeholders in deciding
where to locate what, as it (MCC) concentrates on eviction.
Experience from other cities like Dar es Salaam has shown that eviction is not a proper
way of handling the issue of informal sector. Rather, there is a need for urban authorities
v
to review regulations so as to adopt more flexible and realistic regulations to
accommodate informal sector but under regulated system
ABBREVIATIONS
CBD Central Business Districts
SMP- Sustainable Mwanza Programme
SDP- Sustainable Dar Es Salaam Project
MMC- Mwanza Municipal Council
MCC- Mwanza City Council
DCC- Dar Es Salaam City Council
CBEM- Capacity Building for Environmental Management In Mwanza City
ILO- International Labour Organization
URT- United Republic of Tanzania
SIDO- Small Industry Development Organization
GTZ- Deutsche Gesellschaft Fur Techsche Zusmmenarbeit
IMF- International Monetary Fund
VETA- Vocational And Education Training Authority
GDP- Gross Domestic Product
NGO- Non-Governmental Organization
SCP- Sustainable Cities Programme
UPC- Urban Planning Committee
vi
LIST OF TABLESTable 1: Some of trends that have triggered increased informal sector activities since 1970sTable 2: Key actors on location preferences.Table 3: Location of informal sector before 1996Table 4: Informal sector contribution to the municipal revenue in 1996-1997Table 5: Expected revenue by informal sector contribution to the municipal revenue in 1998Table 6: Sites and land use changes to accommodate informal sector operators.Table 7: areas designated for city council markets.Table 8: Key actors involved in relocation process
LIST OF PLATESPlate no. 1. Used shoes being sold at Mlango-Mmoja. This the most congested areas among the new areas that were relocated to vendors in 1996.
Plate no. 2. These youths engage themselves in providing services by using wheelbarrows at Mlango-Mmoja trading centre.
Plate no. 3. Boat building at Mkuyuni area.
Plate no.4. Making of kerosene lamps at Makoroboi. These operators were also evicted but now they have returned to the area.
Plate no.5. Temporary structures for recreation at the Sahara ground. This is one of the areas that were requested by informal sector operators.
Plate no.6. Fish and vegetable selling. These commodities are laid down exposing them to contamination and dust at Kirumba market.
Plate no.7. The road that joins Liberty and Uhuru streets. This is the area highly demanded by informal sector operators.
Plate no. 8. Carpentry, making of furniture and selling of used tyres.
LIST OF MAPS
Map no 1. Mwanza in the National Context
Map no. 2. Mwanza City boundaryMap no 3. New areas for informal sector operators and the Central Business District.Map no. 4 Mlango – Mmoja Trading CentreMap no. 5 Sabasaba Ground
vii
Map no. 6 Mwanza Central Business District informal sector operators.
viii
CHAPTER ONEBACKGROUND, RESEARCH ISSUES AND METHODOLOGY
1.1 IntroductionThe government made a decision to recognize informal sector activities in 1993, when
she amended the regulation made under section 78 of the Town and Country Planning
Use Classes. This amendment was made to include informal sector in the policies and
strategies for the betterment of the informal traders and the government as a whole. This
amendment is in Use Group E, Special Retail Services Sub Section (d).
Now, following tremendous increase and of significance, informal sector has been placed
among the six priority issues to be dealt with in Mwanza. It is the fifth issue as per city
consultation held after starting Sustainable Mwanza Programmed (SMP) in 1998. There
is a working group that is dealing with the matter to identify challenges and involve some
strategies to overcome the negative externalities.
1.2 Background; informal business sector in TanzaniaDue to diminishing opportunities for employment in the formal sector(see section 2.2.1),
many urban dwellers have engaged themselves in informal activities.
Kombe, W. (2000) discussing informal petty trading activities in Dar es Salaam reports
that the informal sector operators include selling of used garments, fruits, vegetables, and
food vendors, shoe shiners, flowers and newspaper sellers. Halla and Majani (1997) say
that “Petty trading such as selling of used cloths, (mitumba), household items, selling of
electrical appliances, selling of food stuffs as sweets, biscuits etc, are some of the
informal activities conducted by urban dwellers as a means of income generation and
employment creation.
However, in developing countries, Tanzania included, informal sector activities is
increasing being the central source of income and employment generation due to the fact
that formal sector can not fully generate income to meet people’s needs. Researches have
1
already been done by different people and have proved that as revealed by the paragraph
below.
Micro-enterprises are an important component of economic development in urban areas.
Wekwete, (1996:33) notes that informal sector will remain an important source of income
and employment for the urban poor in most developing countries, primarily in the urban
areas. Furthermore, across developing regions, between 30-80% of the urban poor depend
partially or entirely on the informal sector for their livelihood (Ibid.)
In Tanzania, petty trading is a part of the informal sector operations. It is estimated that
the informal sector has a capacity to employ about 65 percent of the annual increase in
labour force while the formal sector can absorb only 8.5 percent (Kombe (1997), citing
URT 1997).
Generally, the operation of informal trading activities has been haphazard, leading to the
neglect of the adverse effects on the surroundings. For instance land use conflicts and
other negative externalities resulting from improper management of waste from petty
trading, obstruction of traffic movement, trespassing on private/semi-private premises
(i.e. shopping veranda) has been increasing. (Kombe(1997). quoting SIDO-GTZ 1995)
1.3 Informal business sector in Mwanza CityMwanza is the commercial capital of Lake Victoria Zone with light and medium sized
industries mainly being fish processing industries, food and beverages1. It is also one of
main administrative centers in the great Lake Zone. According to the 1988 National
population census, the municipality had 223,000 residents. The population was estimated
at 512,000 in 1988 growing at 11% per annum of which 3% is natural while 8% comprise
rural-urban migration basically from the four Lake Zone regions namely Mwanza, Mara,
Shinyanga and Kagera.
Being the second largest city in Tanzania after Dar es Salaam, Mwanza has also a big
percentage about 60% of her population engaging in informal sector activities as source 1 For details refer to the Sustainable Mwanza Programme 1998
2
of their livelihood. (VETA 1998). Informal sector activities is the fifth priority issue
among the six issues identified by the city consultation workshop held during the
launching of Sustainable Mwanza Programmed (SMP) in 1998.
Major causes of rapid growth of informal sector in Mwanza are retrenchment, low salary
in the formal sector, few employment opportunities in the formal sector, and trade
liberalization policies advocated by IMF and World Bank. Most immigrants from rural
areas do not find formal employment. Hence, they opt to do informal business that earn
them something though little.
In Mwanza, just like any other cities in the third world, informal petty trading was
perceived as a source of chaos and going against Town and Country Planning law (CAP
378). Racodi C.1993 adds, “unfortunately, many governments view informal sector as a
source of embarrassment”.
Halla and Majani (1997) say, “some stakeholders have tended to perceive petty trading
negatively for reasons related to hygiene, security, safety and nuisance. This perception
led to eviction of the same and constant crush with local authority regardless of its
importance as far as employment is concerned.
1.4 Statement of the problemThe need of the study
Together with the strategies made to accommodate informal activities in Mwanza such as
provision of new areas for traders, it seems that relocation of the activities in some areas
(like Sabasaba) has led to under utilization of the areas. Consequently, informal activities
are still taking place along the streets including Makoroboi, Karuta, Lumumba and
Rwagasore. The research will investigate challenges that emanate from unregulated
informal sector operators and assess how effective strategies so far adopted to address the
challenges and the whole informal activities operations in Mwanza have been. It is yet to
be known what percentage informal sector activities contribute to the GDP of Mwanza.
3
What percentage of the population of the city engage in informal activities is also
unknown.
Significance of the study
The working group on integrating petty trading into the city economy in Dar es Salaam
which was established in 1994, observed that, petty trading activities need to be
organized, such that their negative impacts to the environment and conflicts with other
activities are minimized. This is particularly so because this sector continues to expand
and contributes positively to the City economy (Halla and Majani 1997). This means
proper management of informal petty trading in Mwanza City is important, so it has to
ensure harmony with the environment.
Beneficiaries of the study
Non-Governmental Organizations in Mwanza will benefit because they know the real
situation of small enterprises, the likes and dislikes of the operators and be able to decide
on how to help them including the type of informal petty traders to direct their loan.
For Ministry of Labour and Youth Development, this study will reveal the extent to
which youths can be employed in the informal sector since it is not possible to engage
most of them in the public sector. This study will also reveal some of the strategies which
can enhance the contribution of the sector in the Tanzania’s economy.
Planners and local authorities as important stakeholders and enforcers of regulations and
policies will be sensitized and will not consider informal activities as chaos. Rather they
will have to sit together with informal sector actors to set strategies that can harmonize
the operation of informal activities in the city setting. Informal petty traders, who are
often the victim of policies against the sector, planners and others, will be represented.
Scope of the study
4
Generally, this study will cover the whole city of Mwanza, but with some specific areas
like Mlango-Mmoja and Sabasaba and the Central Business District (CBD).
1.5 Objectives of the study To investigate the extent, trends and the nature of informal sector activities in
Mwanza.
To identify the main challenges (including adverse impacts) that emanate from
unregulated informal sector activities in the city of Mwanza.
Explore attempts that have been taken to accommodate or regulate informal sector
activities in urban development and their workability.
To seek and draw lessons for identifying new approaches or improving the existing
strategies to harmoniously accommodate informal sector activities in urban
development.
1.6 Research Question What are the main informal activities, trends, nature and why these activities exist
where in Mwanza City?
What are the main challenges (negative impacts) brought about by informal sector
activities?
What are the attempts made by the Mwanza city council to accommodate informal
sector activities? Which ones have been successful? Which ones have failed and
why?
What are the lessons that can be learnt from the experience of Mwanza City in so far
as informal sector activities are concerned?
1.7 MethodologyThis research is based on case studies of the city of Mwanza. The focus is on the
relocation of informal petty traders of Mlango-Mmoja, Sabasaba, and the Central
Business District (CBD involving streets like Karuta, Rwagasore, Makoroboi, Lumumba
and Liberty.
5
The first case is the relocation of areas of Mlango-Mmoja and Sabasaba. The reasons for
selecting these case studies are that first the relocated places are some of the attempts and
strategies to accommodate informal sector activities that took place in 1996. Therefore
the relocation exercise is old enough to allow assessment of its success or failure.
The second case study the CBD may offer quite different challenges, since, the vendors
remained in the areas that was not earmarked for such activities. Thus this poses
operational conflicts with other land use as well as obstructed traffic movement, poor
solid waste disposal and others of the sort.
Further, these case studies have not been much explored by writers, so this study will
provide new information on the challenges and strategies of informal sector activities in
the newly established city of Mwanza.
Techniques
Below are the techniques employed for data collection.
Official documents
This included reviewing of official documents on the city’s urban development strategy,
urban master planning for the city and the Sustainable Mwanza Programme (SMP). The
study of documents includes reports from several agencies.
Literature review
Literature review focused generally on the informal sector activities, their challenges and
strategies for accommodation in urban development. Though not much is written about
the city of Mwanza regarding informal sector activities, similar studies have been written
in the city of Dar es Salaam and other cities in developing countries. Therefore, literature
review revealed some of the experiences that can be adapted by the fast growing city like
Mwanza.
6
Official interviews
This involved interviewing the officials in the Mwanza city council, other practitioners
who are stakeholders in the informal sector activities. These gave information about their
views and experiences. The key informants were mainly from the SMP, Mwanza city
council, CBEM. Other institutions include PRIDE, TAMEA and SIDO.
The study of data from the media
This involved auditing past newspapers, so as to find out what has been the reaction and
views of other people about problems of the informal sector activities in Mwanza or
elsewhere in the country.
Informal Interviews
This involved on spot discussions without prior information with interviewee. This took
place at their work places.
Data Analysis
After having collected all the necessary information, analysis of data was done. This
included examining, categorizing, tabulating and recombining the evidence to address the
objectives of the study.
Report Writing
This started as soon as the research began in the form of documenting existing literature
and data available.
1.8 Definition of informal SectorMany scholars who studied about informal sector have given out their definitions
according to their understanding of the term.
ILO (1972) defines informal sector as an economic activity that exists in urban areas, and
are characterized by a low rate of employment and largely escaping recognition,
enumeration and protection by authorities. It includes activities like petty trade, shoe
7
shining, tailoring, carpentry and masonry with marginal production, small scale or limited
in operation and simple technologies. These activities also lack official links with the
financial institutions.
According to the National Informal Sector Survey (NISS) in Tanzania (1991), informal
sector is reported to be all enterprises having less than five (5) employees paid or unpaid.
Breman, J. (1977) defines “informal sector” as a catch word covering a considerable
range of economic activities which are frequently marshaled under the all-inclusive term
of self-employment”.
Tlali (1996) defines informal sector as the some of all micro-enterprises, handcrafts
activities, small-scale traders and all kinds of service activities.
However, evidence has shown that there is no clear-cut topology of the informal sector as
some of its characteristics are also found in the formal sector. As such the definition of
informal sector may vary from country to country and in time and thus making it difficult
to come up with a universal definition.
Before informal sector is defined, it is imperative to examine, what it means by formal
sector meaning. The formal sector is taken to mean wage labour in permanent
employment, such as that which is characteristics of industrial enterprises, government
offices and other large-scale establishment (Bromley 1985). This implies that (i) a set
number of inter-related jobs which are part of a composite, internally well organized
labour structure (ii) work situations which are officially registered in economic statistics
and (iii) working conditions which are protected by law.(Ibid.)
So to me any activities that do not comply with the above characteristics of the formal
sector as explained above is informal sector. Therefore, informal sectors are the range of
economic activities that are not regulated, operating outside the formal
8
business/economic requirements and regulations of the local government (MCC) and
which are largely directed or regulated by operator's interests and desires.
1.9 Organization of the reportThis report is comprised of five chapters. The first chapter gives the background, outlines
research issues and methodology.
The second chapter is concentrating on the overview of informal sector activities national
wise and later to the study area-the Mwanza City.
The informal sector activities and their implications on urban development is dealt with
in chapter three. In this chapter, the challenges of accommodating informal sector
activities in urban setting are also revealed.
Public response to the informal sector activities in Mwanza is the central discussion on
chapter four. In this chapter the attempts to accommodate the sector are revealed and
evaluated.
Finally, chapter five summarizes the findings, recommendations and draw key
conclusion.
9
CHAPTER TWOINFORMAL SECTOR ACTIVITIES: NATIONAL AND CITY
CONTEXT
2:1 IntroductionInformal sector activities have become a last resort for the solution of low-income
earners, the unemployed and the general public especially in the cities of the developing
World. They have shown and continue to show strong signs of adaptability, innovation
and competitiveness, filling many of the economic niches left vacant by larger enterprises
and providing an important source of income opportunities, on job training and
entrepreneurial skills (Bromley 1985). Credit constraints are widely quoted as the binding
constraint on small enterprises development and informal sector activities (Dandi, D.S.
1999)
Generally, this sector has received little attention by local authorities, being regarded as
source of problems and inconveniences in the city’s development set up. As a result,
there have been clashes with city authorities leading to eviction, torture and mal-
disciplinary measures.
Informal sector activities have proved to be a source of income as well as an important
part of the economy. It is contributing towards individual self-achievement for the people
to cope with high costs of living arising from services and other necessities required for
welfare in the urban areas in Tanzania under prevailing shortage of formal employment
opportunities. So far so good, if the sector is not incorporated in the urban development,
taken care of and given weight as other sources of employment, it can lead to insecurity
of people and property and increases of urban poverty.
2.2 Overview of informal sector activities in TanzaniaBeing a Third World country, Tanzania has been experiencing increasing informal sector
activities in all its cities, municipalities and towns.
In Tanzania, “Petty trading is a part of the informal sector operations. It is estimated that
the informal sector has a capacity to employ about 65 percent of the annual increase in
10
labour force while the formal sector can absorb only 8.5 percent. Kombe (1997) quoting
URT (1997).
2.2.1 Past and recent trendsThe increase of informal sector did not just erupt from nowhere, but is a result of changes
that have been taking place since independence. Kabange (2000) quoting DCC 1995
reports that in essence, the petty trading sector has largely been called up on by the
economic, political and socio-economic changes occurring in Tanzania, especially in the
1980s.
Table 1. Some of trends that have triggered increased informal sector activities since 1970s
sn Event Time Aim Status Result/Effect
1 Villagesation 1974-1976 Move people from
scattered homestead to
villages for facilitating
them to work together
for increased
production
Little success due to lack of
proper rural development
programs.
Low production and
management of farms
located far from villages
lead to rural-urban
migration.
Young generation
drifted to towns and
started informal
activities because
they could not get job
in the former sector.
2 Human
Resource
Deployment
Act (Nguvu
kazi)
1983 Every able person
engage in productive
activities more
skillfully
More people could get
licenses for running small
business enterprises.
More people were
encouraged to start
business enterprises
3 Trade
liberalization
Policy
1985-1990 Economic to be
directed by market
forces
Freed import/export,
availability of many
commodities
Massive
retrenchment.
Reduced tariffs.
4 Retrenchment,
closure of
public-owned
factories e.t.c.
1990s Increased economic
efficiency
Many factories closed or
sold
More people seeking
job joins the informal
sector
Source: Field survey 2001
11
From the events that are shown on the table above, the trend shows that informal sector
activities increase with time and event. Engagement in informal sector activities is a
result of a number of factors of which some are externally imposed in the country, some
are internal and are there due to the following causes: -
Rural-urban migration
Rural-Urban migration is partly due to poor performance and lack of necessary facilities
in the rural areas that acts as push factor. Ruskulis Otto (1996) says that, people move to
town areas and cities for a number of reasons, which may differ from one individual to
another. But, fundamentally the main reason are lack of rural based job opportunities, a
perception that cities offer a large range of opportunities to earn an income and that cities
are perceived to offer a greater range of facilities and a more dynamic lifestyle.
In early 1970s the on set of villagezation, that put people together aimed at providing
people with all the necessary requirements like education, water health facilities and to
increase production. But unfortunately it did not successfully materialize. As a result,
young people flew to urban areas. While in urban areas, these ambitious youths did not
get white collar jobs/formal jobs as they expected, hence they engage themselves in
informal.
Reduced tariffs in import goods
This happened especially during the second phase government led by his Excellency
President A.H. Mwinyi. During the period (1985-1995) various tariffs had to inevitably
be reduced and restrictions on internal trade, including price controls removed.
Consequently, varieties of goods that were not available in the shops were imported. The
youths started to sell petty goods in the streets of Congo (Kariakoo) and Makoroboi
(Mwanza), to mention a few. The item sold include; second hand clothes commonly
known as “mitumba”, household items, pairs of shoes, etc. This also attracted more
people from the rural area to go to urban areas to trade. The President then declared it
“ruksa” (meaning allowed) to do business anywhere in the country. This act led to
nickname President Mwinyi as “Mzee Ruksa”. Further in 1989, President Mwinyi saw
12
the ever-increasing urban dwellers engaging in petty trading. He ordered the city
authorities not to disturb vendors. He was quoted by Daily news of 12 th Nov. 1989
declaring that petty traders be left to do business wherever they were in the city of Dar es
Salaam and the country as a whole. This stance towards informal sector activities
substantially boosted the sector.
Low salaries in formal sector
Due to the fact that low national production could not allow employees to be paid
sufficiently, the government of the second phase in the country allowed government
workers to engage in alternative strategies for supplementing their meager salaries.
Lugalla, 1989:92 argues that the urban dwellers that are in the formal sector too are not in
favourable position economically, workers income is low and life is expensive. Their
earning are not corresponding to their monthly cost of living. It is believed that more than
80% of urban dwellers supplement their income from informal petty trading. (Ibid.) This
is well revealed by the presence of tables in front of most houses in the streets selling
small goods like biscuits, matchboxes, sweets, soaps etc. And sometimes the sellers walk
along the streets with their commodities in his/her hands trying to convince people to buy
them. This is part of economic realities found in many African families in urban areas has
resulted in the formation of new type of labour known where by some (household)
commodities are sold in streets rather than in shops.
Declined employment opportunities in the formal sector
Formal employment opportunities in urban areas in Tanzania are never enough to cater
for or cope with the increasing population. Most of the jobs found now in urban areas are
limited to people whom have attained high level of education. Primary and Secondary
school leavers, hardly get formal employment nowadays.
It is estimated that the informal sector has a capacity to employ about 65% of the annual
increase in labour force while the formal sector can only absorb only 8.5% (Kombe 1997
quoting URT 1997). Ruskulis (1996) repots that, in Tanzania for example, it has been
13
estimated that only 3% of new entrants to the job market are likely to find employment in
the formal sector in the short and medium term.
The fact that lies behind this shortage of formal employment opportunities includes poor
performance of local industries. At times locally produced goods are expensive and
priced out by imported goods, the situation that lowers production or even closure of
some factories. Some industries have been sold to foreign investors and some have closed
down leading to massive unemployment of most of urban dwellers. One of the only
alternatives for the unemployed youth and adults is to engage in informal activities that
has free entry and often require low capital to start.
Mjema, G.D (1999) quoting NIGP notes that, the rapid growth of the labour force and the
inability of the economy to generate enough jobs for the youths and women is a time
bomb (my emphasis). This is left undiffused, could explode and shelter the peace the
country has been enjoying since independence”
Retrenchment
Tanzania has been undergoing economic changes leading to market economy from
planned one. The economic changes advocated by IMF and World Bank have forced
Tanzania to comply with economic adjustment policies. However, for Tanzania to have
her economy supported in terms of loans by this financial institutions, a lot had to be
done including reducing operational costs (labour) in the civil services and its ailing
parastatals. Also privatization of the public owned factories and service institutions. The
conditions left hundreds of thousands of Tanzanians without employment.. Informal
activities were the place of last resort. These people erected kiosks in the streets and
started to do business.
2.2.2 Policy environmentIn 1993, the government of Tanzania amended the Town and Country Planning
Ordinance section 78 of use classes to accommodate informal sector.
14
In 1997, the establishment of VETA also shows that the government insists on self-
employment. VETA trains people in different disciplines that cannot all be
accommodated in the formal sector.
In the 1990s, the government has adopted poverty eradication policies that insist on
supporting people to engage in productive activities. Informal sector has been operating
since early years of independence as discussed earlier. But recent researches show that
informal sector activities increase are due to changes of political and economic situations.
In 1997, the government approved a National Employment Policy (NEP) destined to
create an enabling environment allowing everybody willing to work to do so especially in
the rural and urban informal sectors including individuals, the private sector, NGOs and
other community based grassroots organisations. The overall objective of the policy is to
promote employment opportunities and increase productivity of the labour force to
ensure fully utilization of available human resource capacity. In its totality, the eighth and
ninth specific objectives of NEP are open supporting informal sector operations. The
eight states, design especial employment programs for disadvantaged group such as
youth, women people with disabilities, retired people and the retrenched. And the ninth
insists on strengthening the rural and informal sectors, which have great potential for self
–employment. (Dandi, D.S. 1999).citing URT 1997
2.2.3 Prospects of informal sector in TanzaniaDue to the fact that formal sector cannot accommodate the labor force entering the
market, informal sector will remain the main employer of people in Tanzania, just like
any other developing countries (especially in the third world).
2.2.4. Characteristics of informal sector activities Informal sector activities have characteristics that distinguish it from the formal
sector.
Quite insecure and strongly dependent on the local demand for a particular product or
services.
15
Very competitive, with prices for products and services forced down by supply
exceeding demand.
Often operate on a small-scale often just one person, sometimes a number of family
members engaged in particular activities.
Individuals in the informal sector trading on one or a variety of trades
Working conditions often being unsafe and unhealthy. Health, safety and employment
regulations are often not enforced. Many vendors work long hours and under
difficulty conditions e.g. in high temperatures or exposed to polluted environments
and unsafe machinery.
Financial transactions often unrecorded, enterprises not registered, no bank accounts
operated, taxes not paid.
Easy entry
Skills acquired outside the formal school system. ILO (1972), Otto Ruskulis (1996:2),
and Tlali (1996)
2:3 Informal sector activities in MwanzaInformal sector activities in the city of Mwanza are something inevitable following the
increase in the population that cannot secure formal employment.
The sustainable Mwanza Programme that started in 1998 notes that Mwanza is a
commercial capital of Lake Victoria zone with light and medium sized industries mainly
being fish processing industries, food and beverages. Further, it is also one of major
administrative centers of the great lake zone in Africa. According to the 1988 national
population census the city had a total of 223,000 residents. The population was estimated
at 512,000 in 1998 growing at 11% per annum out of this, 3% is natural and 8% is due to
rural-urban migration, basically from the four lake zone regions namely Mara,
Shinyanga, Kagera, Tabora and Kigoma.
Recent trends-growth
Statistics show that the majority of people are self-employed. In 1984, for example, 41%
were self-employed, 32% employed and 27% unemployed. This trend of large city
16
population (68%) being either self-employed or unemployed is still persisting and
increasing. (MMC. 1998:3)
The survey made by VETA in 1998 February shows that, the number of informal sector
operators registered in the survey was 40,085. This is quite a big number and exceeds at
least four to five times the number of employees in the formal sector in Mwanza city
(Dubell, F. 1998: 3). Dubell continues to say that if we assume that 35,000 of the 40,085
informal sector operators are the sole bread winners in a family of six persons, then 60%
of the district (Mwanza city) population would be dependent on informal sector.
The two researches done by MMC 1998 and VETA 1998 show that there is an increase in
the informal sector operators from 41% in 1984 to 60% in 1998. This trend of the
increase (by 19%) is mainly by rural-urban migration. The MMC 1998 reveals that the
number of people engaged in agricultural activities has declined gradually over the years.
The main reasons to this are land shortage, unreliability of rainfall, increasing land
infertility, and high cost of fertilizers and pesticides. Land shortage and decline of cotton
production reduced people’s dependence on agriculture as an economic activity.
However, there are about four sectors of informal activities in Mwanza namely petty
trading, service, manufacturing and building. All these operate according to the needs of
the market. They have been operating in very strategic points with the characteristics of
easily accessible by transport and ready market.
2.3.1. The categories of informal sector in Mwanza CityPetty trading
From observation made in this study, goods involved in the petty trading category include
selling of fresh and fried fish, clothes, foodstuffs, soft drinks, fruits and vegetables,
newspapers, toothpaste, shoes, cassettes and brooms. Some have mobile shops moving
around streets convincing customers to buy their commodities. Some have movable
tables and others have permanent kiosks.
17
Service category
Informal sector also includes services sector. Observations during the study noted
barber/salon, TV and radio repairs, Maasai herbalists at the CBD and shoe shiners. With
an exception of Maasai herbalists, other services under this category are spread all over
the city i.e. means near their customers from homesteads. The Maasai catch customers
who are on transit to different parts and from urban areas. Among the Maasai women
herbalists interviewed during the study Mama Koko Ole Sayore had this to say. “ Wateja
wangu wengi wako huku mjini, ni wale ambao wanajua zaidi eneo hili na hawawezi
kwenda mbali zaidi ya hapa kwa vile siyo wenyeji.” (In English, my customers are those
in the city centre, those who are not aware of other places of the city). But 12 interviewed
barbers and TV and Radio repairs said that most of their customers reside in streets they
operate their business. These have permanent work places.
Manufacturing
This involves the making of kerosine candles (lamps)(Koroboi) at Makoroboi (the name
of the street was named after the activities taking place there). Other activities here are
carpentry, leather shoe works, boat building and dress making and tailoring).
Building and construction
Within the building field the informal sector is important in both the production of
building materials and in building construction. In Mwanza informal activities for the
building purposes include making building blocks, crushing stones and selling of timber
products. Ruskuli (1996) says, “in some cases, the production sites are not suited to the
type of production being carried out, being too cramped, or lacking facilities such mains
water nearly”. This is well exemplified in areas where burning stones takes place. In this
areas, residents around face air pollution that may have adverse health effects.
On the construction side, many of the so-called self-help housing schemes are not
generally built by the plot owners but by hired builders. Some plot owners are not skilled
to houses. Others do not have the time. Generally, it is only the lower quality temporary
housing, the so-called slums, which are usually self-built” (Ruskulis (1996:2). Ruskulis
18
observations are well revealed in the city of Mwanza that squatter houses on hills of
Bugando, Mabatini, Kitangiri and Igogo are mainly self-built.
Agriculture
Agriculture include vegetable and fruit gardening poultry keeping, dairy farming,
piggery, crops production, flower growing, fishing, bee keeping and wax collection.
(Dandi, D.S1999). This observation by Dandi happens also in Mwanza city. Those areas
with plots not built have seen to have urban agriculture and especially the outskirt areas
and fishing taking place in lake Victoria.
Transportation and cultural activities
These include traditional dancing group, operation of unlicensed buses, taxis and
pushcarts. These are mostly located where petty trading takes place like the CBD,
Mlango Mmoja, near hotels of Mwanza, Tilapia and lake to mention a few.
2.3.2. DiversificationInformal sector in Mwanza City is diversified. In fact the operators are found in most
traditional economic sectors: primary, secondary and tertiary.
The primary sector includes for example agriculture, hunting, fishing, forestry, quarrying,
and the extractive industries. The secondary sector, the products extracted from the
natural resources of the primary sector are used to manufacture or produce commodities
such as clothes, foodstuffs, shoes, furniture, metal product, etc. In the tertiary sector,
finally, we find many informal sector operators running small hotels and restaurants;
earning an income from the petty trade business selling practically all most of items; food
vendors; etc. (Dubell, F. 1998:23).
The informal sector operators in Mwanza City operate in all these three economic sectors
and from that point of view, one can say that the informal sector activities in Mwanza
city are quite diversified.
19
2.4. Key actors and location preferencesInformal sector activities operate at either fixed or varying locations. The choice of
location is influenced by the proximity to the market or raw material or similar
enterprises or the residential areas of operators (Luanda, A. 1988). Luanda adds that
public transport services are additional factors influencing the choice or location of
informal sector operators.
In Mwanza also, generally the location of informal sector depict Luanda’s findings in
Manzese in Dar es Salaam City. Vendors often prefer in areas with ready market of the
CBD. This is especially in the case of petty trading. Informal agriculture, shoe shiners,
barbers/Salon and the selling of fried fish are located mostly in residential area where the
market is available. Stone crushing, fishing and smoking, quarrying and the like are
mostly located where there are raw materials.
However, there has been a difference in location preference between different actors.
While the petty traders prefer to operate at the CBD, the city authority has identified
other areas that ought to be used for informal sector activities. The city authority has
identified the market areas, but most of them are not used since they seem to lack the
conditions preferred by the informal sector operators.
Table 2. Key actors on location preferences
Sn. Actor Location Preference Reasons for the preference
1. City authority Out of the CBD To reduce congestion,
Control environmental degradation at the CBD
Take services near the consumers.
Follow town planning regulations
2. Informal sector
operators
At the CBD Readily available market or access to customers
Accessible, good transport.
3. NGO’s (Money
financiers of ISO)
The CBD Where market is ready.
Easy to reach their clients.
Source: Field Survey 2001.
From table 2, there seems to be conflicting interests location wise and these make it
difficult/challenging for city authority to accommodate petty trading. This conflicting
20
interests of key actors has led to constant clash between petty traders and city authority.
However, the petty trade vendors or “Machinga” sent a letter to the city authority
demanding to be allowed to do business at the CBD. “In search of their patrons they tend
to locate only at strategic stretches and points on the city’s streets and roads, they do not
locate anywhere any time in the city”, (Halla, F, 1997:66). This observation holds water
in the case of Mwanza City. The table below shows location of informal sector operators
and type of goods they produce or sell.
21
Table 3. Location of informal sector before 1996
Sn Name of area Type of goods involved Reasons for that location Problems
caused
Extent of area
1 Makoroboi (not
designated for Petty
trading- belonged to
Mwanachi Hospital)
Making of kerosine
candles/lamps (Koroboi), old
garments (Mitumba), “Mama
lishe”(food vendors) industrial
made clothes, shoes, old boxes.
Main route for pedestrian
from the bus stand to
Kamanga ferry.
No waste
disposal.
Congested.
No sewerage
system
From Lumumba to station
road South of Nyerere road
2 Mabatini Fried fish, cooked/green banana,
sweet potatoes
Residential area ,
goods are easily consumed
by surrounding inhabitants - do -
At the Y-junction of
Nyerere and Kleruu roads
3 Lumumba, Rwagasore,
Liberty, Bus stand
Shoes shining, carpentry,
Mitumba, mobile shops, Maasai
traditional healers.
Central Business District
(CBD) densely populated
area, many customers.
The presence of main bus
stand, express bus terminals
from (Igoma, Mabatini,
Nyakato, Kirumba airport,
pasiansi, Kilimahewa,
Nyamanoro), Terminal for
cabs,
many customers
Haphazard
Solid wasted
disposal.
Obstruction of
traffic
movement
Between Pamba road,
Kenyatta and Nyerere,
4 Karuta -do- Main route from Railway
station to the main bus
stand
-do- From station to Rwagasore
5 Igoma - do - Main route to Musoma.
Attracts rural people who
come during the day and
back in evening.
- do - Along Musoma road
6 Kamanga Ferry - do - Ferrying people to
Sengerema and Geita
waiting transport.
- do - Kamanga area
7 Mkuyuni -Fish, agricultural products,
Milk; mama ntilie
Presence of industries eg.
VOIL, warehouses
- do - Along Kenyatta road
8 Bwiru Sands for construction Easy availability of sand. Soil erosion, air
and water
pollution
At the shore of lake
Victoria
Source: Field survey 2001
22
CHAPTER THREEINFORMAL ACTIVITIES Vs URBAN DEVELOPMENT
3.1. IntroductionInformal sector has frequently conflict with urban development authorities, regardless of
its importance. Due to among other things the negative impacts of the sector in an urban
setting, it has been difficult for urban authorities to accommodate the sector.
As will be explained in section 3.2 negative impacts posses a difficult task to accept
informal sector operators in the CBD of Mwanza City. Informal sector has often been
characterized by environmental degradation, obstruction of traffic movement and poor
aesthetics of the city. So, this means that incorporating the sector in an urban setting
means finding options to address the negative impacts emanating from their operation.
The chapter discusses challenges that are associated with informal sector operation in the
process of incorporating the sector in urban setting i.e. to legalize it.
3.2. Positive and negative impacts of informal sector activitiesInformal sectors have both positive and negative impacts. The impacts explained here
concerns land use, environment, economy and employment and revenue generation.
3.2.1. Impacts on land usePositive impacts
Informal sector activities have got positive impacts on land use. It increases land
value of the surrounding areas.
Lead to change of use of areas according to the demand of people, eg residential to
commercial plots
There is also the use of idle land especially on big plots and unused land. This
beautifies the area by green vegetation.
23
Negative impacts
Obstruction of traffic/traffic congestion. This is happening at the roads of Rwagasore,
Lumumba, Pamba and Karuta. These roads constitute the busiest ares of the city as it has
a lot of petty traders and traffic movement both human beings and vehicles.
Invading areas designated for other uses like open spaces like the Sahara open space
along Pamba Road that belongs to Bugarika Primary School. Also, there is closure of
roads by vendors. This is the case of Liberty Street and Uhuru road.
Causes insecurity to the pedestrian. This is because the pedestrian ways like arcades are
congested with goods as a result, pedestrians have been pushed to share the same roads
with vehicles which may lead to accidents.
3.2.2. Impacts on EnvironmentPositive impacts
There are positive impacts of informal sector on environment. These include reuse of
wastes. For example, there is scavenging at the Nyakato dump where informal operators
pick canes for making of kerosene candles, collection of wood pulps and selling them to
mama lishe as they are used as fuel. Informal operators also use old tyres for making
sandals and this more prominent at the CBD comprising of streets like Pamba and Sahara
ground. So the reuse of wastes help in cleaning the environment.
Negative impacts
According to MMC 1998:40, the informal sector activities cause environmental
destruction, e.g. it leads to land depletion through stone quarrying and pollution of Lake
Victoria. A lot of small fishermen are accommodated in temporary settlements on the
beach shore with no sanitary facilities. Wastewater is therefore discharged directly onto
the lake especially during rains. Further, solid and liquid waste from many petty trade
activities is disposed off indiscriminately, causing nuisance and health problems to the
residents of the city.
24
3.2.3. Impacts on economy and employmentPositive impacts
It is a potential source of employment, as it employs more that 60% (Dubell 1988) of
the total labour force entering the market in Mwanza City.
Informal sector provides basic items to all low-income people as it provides goods
and services at affordable prices.
Luanda A. (1988) notes it reduces the criminal and other law-breaking incidence by
providing people with substance income. Some of the Informal sector operators
interviewed admitted they will have to engage themselves in robbery and other
wicked ways of life if prohibited from conducting their bread earning business
Generally, informal activities help to fights poverty among the low-income earners of
the city. For instance in Mwanza City, about 40,000 informal sector operators sustain
their needs through these small businesses, without these activities, most of people
would probably be loiterers.
3.2.4 Impacts on Revenue generationPositive impacts
Informal activities contribute a certain amount in the city’s revenue. Below is the table
that shows its contribution.
Table 4: Informal sector contribution to the Municipal revenue in 1996-1997
Sn Year Council Actual Budget IS actual Contribution Contribution to the
Council budget in %
1. 1996 471,653,088.00 7,709,480.00 1.63
2 1997 933,703,220.45 11,324,680.00 1.21
Source: MMC EP 1998
Table 5. Expected revenue by informal sector contribution to the Municipal revenue in 1998
Year Council Estimated Budget IS Estimated Contribution Expected Contribution to the
Council’s Budget in %
1998 1,429,606,235.00 14,745,000.00 1.0
Source: MMC EP 1998
25
From the above two tables, the trend of informal sector contribution to city’s revenue
increased between the year 1996 and 1997. This shows that informal sector in the city has
importance and thus it has to be supported.
Negative impacts
Tax evading as a result of unregistered informal sector operators and mobile vendors.
3.3. Challenges of informal sectorAccommodating informal sector is important strategy in urban development. After all
experience has shown that it is difficult to manage informal sector operators by eviction.
Besides, its importance has been increasing. Bellow is the experience of accommodating
informal sector activities in Dar es Salaam City.
3.3.1. The Experience from the city of Dar es SalaamA study conducted in Dar es Salaam in 1995 estimated that there were about 350,000
informal business providing approximately 500,000 jobs. Kombe (2000) quoting (SIDO-
GTZ 1995). Further the National informal sector survey report (NISS 1992) recorded that
petty trading engaged 64.13 percent of the total informal business sector in Dar es Salaam
and provide employment to over 203,000 people (Ibid.). This shows that Dar es Salaam
has also been experiencing informal sector operations, and as revealed above, the sector
employs more people compared to the formal hence marks its importance and
consideration of its integration in the urban setting.
In Dar es Salaam City, informal sector has also faced rejection from the authority. In
1963, the Dar es Salaam City Council Hawking and Street Trading By-law. Was
proclaimed. (Luanda, A. 1988). However, under this by-law, street trading was banned.
Luanda continues to report that the by-law failed because the city labour force was
growing fast as compared to the formal employment opportunities.
In 1974 the city established operation villages. This aimed at taking the unemployed from
the city to the nearby villages of Kibugumo, Mwanamilato and Gezaulole in Coast
26
Region, This move did not work because the new established villages lacked basic
facilities like water and dispensaries that made life too difficulty.( Luanda 1988)
In 1982, the City Council’s Crackdown Program on Street Hawkers and Traders and
Unplanned Market was initiated. This was a move taken by the City Council to evict
people from the streets, open spaces and along major routes, and direct them to carry out
their activities on designated areas including Mburahati, Ilala, Tandale and Temeke
markets. But these locations were not adequate for all potential informal sector operators
(Luanda, A, 1988). These areas had little attraction of customers since they were located
in areas not related to strategic concentration points of patrons. The result of this was a
total failure, within few months vendors were back to the roads and other undesignated
areas. Luanda 1988 quoting Malya Kibaba A.C. 1983 reports that various activities were
seen on streets and organic markets.
The Human Resource Deployment Act of 1983 required informal sector operators to
acquire licenses and operated in designated areas. This Act however was an incentive to
unemployed or underemployed to start business. The failure to evict informal sector
operators in the city and its increase led to its acceptance.
The big challenges experienced here are the return of informal sector operators in
prohibited areas. In this case, conflicting interests between the city authorities include
planners needing to implement the 1979 Dar es Salaam Master Plan and the
implementation of the Sustainable Dar Es Salaam Project (SDP) ideas.
Halla, F. (1997: 64) notes that an episode of the operational conflict was whether and
how to accommodate, through urban planning informal-sector activities such as petty
trading in the city. In this case SDP advocate the integrating of informal sector in an
urban setting instead of evicting them and confining them to areas without necessary
prerequisites for activities. However much as the DCC tried to evict informal sector
operators, they had never left the city center.
27
In the process of integrating and managing informal sector operators, the working Group
(WG) was established in 1992 in a consultation workshop. “One of the first outcomes
from the negotiations, which were carried by the working group up on its formation, is
the agreement on and acknowledgment of informal (petty) traders as legitimate actors in
the city. Thus their activities have to be supported and not simply dismissed or neglected
in the city development planning and management process (Kombe, W. 2000). This was
the beginning of the process of accommodating informal sector activities in the city of
Dar es Salaam operation. The Working Group had the goals of accommodation, eviction
and relocation strategies as far as informal sector operations are concerned. Of the three,
relocation was adopted as the main strategy primarily because it would support continued
stay of the vendors in their trade. (Ibid)
Following the adoption of the strategies, series of consultations and discussions were
conducted with a members of groups representing vendors and other informal sector
operators in the city (Kombe, 2000). The aim was to solicit view, support and
cooperation. This was a good step towards minimization of conflict between informal
sector operators and other stakeholders.
The vendor’s organization e.g. VIBINDO AND DKOA with the WG reached a
consensus on where to relocate informal activities. The areas identified were
Makumbusho and Temeke-Stereo. But these markets were abandoned. (Kabange 2000)
As of May 1996 the city center informal sector activities continued to be operated by
such petty traders. Furthermore, the pace at which informal sector operators increased
was beyond city authorities and control hence posing another challenge to urban
planners. (Halla 1997: 67)
In Dar es Salaam City, urban planning practitioners continued to enforce eviction of
informal sector operators though they failed. The challenges of accommodating informal
sector operators increased when the second phase President, A. H. Mwinyi allowed the
“Machinga” to operate in the city areas (Daily News of November 12, 1989).
28
The city council has taken accommodation measures changing some of the streets into
non-motorable ones to be used by petty traders. This is the case for the Congo Street. Or
of sharing streets with other road users like the case of Kisutu area. This attempt seems to
have minimized the conflict between the city authority and informal sector operators
It is also note worth that eviction of petty traders provoked skirmishes between the city
council “askaris” and vendors. This led to new invasions by hawkers on open sites in the
city. Meanwhile the DCC’s decisions to resort to the ill fated solutions (unorganized
eviction) not only demoralized the stakeholders but also increased hostility between the
local authority and the vendors. (Kombe W, 2000)
However the experience here shows that relocation has not yet proved success simply
because it did not take into account of necessary conditions for informal sector activities
to operate.
3.3.2. The case of Mwanza CityMwanza City, as the case with other cities like Dar es Salaam, has been considering
informal sector activities as law breaking. Even after the recognition of the sector
following the amendment of section 78 of Town and Country Planning Ordinance, use
classes, the Municipal authority continued to prohibit petty traders to operate especially
in the CBD. City authority has identified some problems that are associated by informal
sector operators. These were congestion of streets, haphazard solid waste disposal,
obstruction of traffic movement and insecurity of pedestrians and going against the law.
The streets that were mostly affected by informal petty trading are at the CBD. These are
market, Mitimirefu, Karuta, Lumumba, Station, Liberty, Makoroboi, Posta, Nkurumah,
Uhuru, Rwagasore, Pamba, Nyerere and Kenyatta.
Before the acceptance of informal sector operators in 1993, it was common to see street
vendors being evicted from the CBD and forced to stop their operations. But then the
Municipal authority did not provide any convenient space for them to do their business.
This created a hostile environment between the two parties, i.e. between the informal
29
sector operators and urban planning practitioners. However, eviction from the CBD could
not be successful as informal sector operators went back to their origin operation areas.
In 1996, the MMC identified some areas to be used for informal sector activities. These
areas were away from the CBD, the area that was mostly preferred by petty traders.
Mwanza City Council relocated informal sector operators to the new areas. In an
interview with Mr. Ntabo (the assistant city planner) on February 2001, he admitted that
eviction was not easy and they had to use extra force to reach the goal including
bulldozers, police, etc. The new areas were Sabasaba (7km from CBD to Airport),
Mlango-Mmoja, Kitangiri, the Msuka football ground (Kilimahewa), Mkuyuni, Nyegezi
community center, Butimba market, Mwaloni and Kirumba. These areas were not fully
utilized and informal sector operators were back to the CBD.
The establishment of the sustainable Mwanza Programme (SMP) in 1998 set a new
chapter. It advocated that the informal sector operators be left to operate at the CBD, only
that reorganization has to take place. Accommodating informal sector activities in urban
development is not easy due to differences in interests between stakeholders. Mwanza
City Council is facing the following challenges in its course to accommodate informal
sector activities.
Location consideration
In this case, location of informal sector operators should take into consideration of the
ready market and accessibility in terms of vehicles. In the case of Mwanza city locating
informal activities in the area out of the city center could not meet this need. In Dec.
2000, informal sector operators in the city sent a letter to the city authority. They
demanded to be given the following areas at the CBD; The Sahara ground, along Pamba
road, in front of Pamba secondary school, the road joining Liberty and Uhuru streets,
Kamanga ferry, the area around the High court and RC, and around Butimba Health
Centre. MCC rejected the request and is still ordering them to go to the designated areas.
30
Different interests between stakeholders
Here, When the MCC is adopting eviction strategy; SMP prefers organization of petty
trading in the city center. This makes the exercise of accommodating informal sector
activities difficult.
Unwillingness of petty traders to shift to the designated areas
Having being relocated in areas that are not appropriate like Mlango-Mmoja and areas far
from the ready market, informal sector operators are returning to the CBD. In December
2000, MCC tried to evict petty traders from the CBD, but they failed. This led to the fight
between officials and informal sector operators, a car owned by the council was
destroyed and members from both parties sustained injuries. Up to now, there a lot of
vendors in the CBD.
Rigidity of Mwanza City Council (MCC)
MCC is reluctant to admit that if they adhere to the master plan prescriptions they will
not be able to accommodate informal sector operators. The MCC is not ready to change
according to the realities found in Mwanza.
31
CHAPTER FOURPUBLIC RESPONSE TO INFORMAL ACTIVITIES IN MWANZA
4.1. IntroductionAs explained noted earlier, there has been a tendency and practice among city authorities
to ban and evict informal sector operators because they cause environmental degradation
and bring inconveniences in the urban development.
In this chapter, the responses of MCC are discussed. This includes relocation and
eviction. The response of informal sector operators to the city authority is also examined
.
4.2. Neglect of informal activities: pre-recognitionThough the Mwanza city council knows the growing number of people engaged in
informal sector, it has showed no initiatives or done very little to improve and support the
sector. Informal sector is not accommodated in the land use or in the master plan. Further
even the Mwanza central area redevelopment plan of 1993-2013 does not consider about
informal sector operations, even though this plan was prepared for the critical informal
sector area in the city. Hayuma, the Director for Town Planning by then approved the
Plan in 1997 without regard of the change of the Cap 378 section 78, and The Human
Deployment Act 1983. By so doing, he also joined the MMC in neglecting informal
sector activities.
Although the government of Tanzania proclaimed the Human Resource Deployment Act
of 1983 (Nguvu Kazi) and established a range of activities which were allowed to be
conducted and how they would be conducted. It also insisted on giving license to
operators, there was no land use plan to support this decision. What was done was to
give licenses to informal sector operators, telling them to work hard, but giving them no
better area with the necessary facilities required for the operation. Consequently, this led
to a clash with Mwanza Municipal Council. The dispute was accelerated by the tradition
among urban planners to believe in their “blue print”, master-planning document without
responding to socio-economic and political realities.
32
4.3. RecognitionAs explained in the previous section, the government recognized the importance of
informal sector operations. It produced the Human Resource Deployment Act in 1983
that insisted that all able persons work or engage in productive business. This
encouraged people both from the town and those from the rural areas to engage in small
business activities. This was an attempt to recognize informal sector.
The on set of the Sustainable Mwanza Programme (SMP) in 1998 marked a step forward
to recognizing informal sector operators. SMP being under the Sustainable Cities
Program initiated by the United Nations Centre for Human Settlement (HABITAT).
Kabange, (2000) noted that the main aim of SCP was to respond to the ever-increasing
urban economic and environmental challenges, by finding the viable ways of dealing
with them.
In response to the challenges brought about by different activities in Mwanza, SMP has
been emphasizing the reorganization of the CBD so that it accommodates the informal
sector operators. Nevertheless, this has been opposed strongly by the MCC because it
insists on eviction of vendors from the CBD.
4.4 Post recognitionThe Mwanza City Council has not yet done any research concerning informal sector
activities to know the magnitude of the problem. This poses difficulties in provision of
for instance space, knowing their needs and degree of environmental degradation. Up to
this moment, the MCC relies on the research done by VETA in 1998.
4.5. Strategies to accommodate informal sector activitiesIn chapter 3, the challenges that MCC faces in the process of accommodating informal
sector activities are explained. These challenges include locational preferences, differing
opinions between stakeholders, return of informal sector operators to the CBD and
rigidity of MCC.
33
In overcoming the above challenges, MCC resolved to some strategies to integrate the
sector as explained below.
Relocation of informal sector operators to new areas
According to MCC, relocation of informal sector operators took place in 1996 as an
attempt to do away the negative impacts arising from their unregulated operations. The
reasons for relocation include the need to control environmental degradation, abide by the
town planning regulations and set a conducive environment for tax collections to take
place.
Relocation strategy was in a way an attempt to accommodate informal sector activities by
providing space for their operation in different parts of the city. Below is the table
showing the areas that had their use changed for accommodating informal sector
operators.
34
Table 6. Sites and land use changes to accommodate informal sector operators
S/
N
Area Former
Use
Date of change
of Use
Minute
number(Min.
no.)
Proposed/
designated land use
Business that is going on
now
The condition now
1. Mlango
Mmoja
Local
brew
(Pombe
Shop)
Meeting of
UPC on
15/3/1993
20/1993 (d) Centre for retail
trade
350 “Mitumba” tables.
31 kiosks for small
businesses.
70 Mama lishe
Trade is taking
place the whole
week
2. Sabasaba Trade
fair
ground
11/01/1996 2/1996 Retail trade Selling of “Mitumba” 966
tables.
Mama lishe 10 huts.
Retail shops (89 shops).
Sunday market
Only the Sundary
Market is on
operation
3. Kitangiri
Pombe
shop
(local
brew)
Market
for local
brew
4/2/1997 2/1997 Market for retail
trade
Selling of “Mitumba” 200
tables.
Selling fruits and vegetables
Very few are
continuing with
business there
4. Msuka
football
ground
(Kilimahe
wa)
Football
ground
25/03/1997 4/1997 Market for retail
trade
Selling of fruits, cereals,
fish, and vegetable
Business takes
place daily
5. Mkuyuni
Pombe
shop
Market
for local
brew
4/2/1997 2/1997 Offices and retail
trade
“Gulio”, Mama lishe” and
Kiosks
Only the Sunday
market still on
operation
6. Nyegezi
Communi
ty centre
area
Commu
nity
centre
25/7/1997 8/1997(d) Retail trade for a
certain period
Thursday Market Only the Thursday
market still on
operation
7. Butimba
market
“Kitalu
C”
Market 25/7/1996 8/1997 (c) “Gulio” and retail
shop
No business is
going on
8. Area of
Kitalu
“KK”
Nyakato
Public
building
26/6/1996 13/1996(f) Market for retail
trade
Fruits, cereals, vegetables,
etc.
This is a daily
market
9. Mwaloni
Kirumba
Mwalo
(Shore)
Identifying area
for Mama lishe
3/7/1996
35/1996 Selling food (Mama
lishe
28 table of Mama lishe The business
operates daily
Source: Mwanza city council 2001.
When you look at the table above, the areas that are effectively used are only three. These
are Mlango Mmoja, Msuka ground and Mwalomi. Mlango Mmoja is mostly used because
35
it is located near to the CBD (more detail 4:5:1). The Msuka ground is effectively used
due to the nature of goods sold there, this include vegetables, fish and fruits that are
highly needed by the settlers in the surrounding area. Other areas, six of them are not
effectively used due to various reasons such as lack of ready market because of their poor
location. Too long distance from the CBD where customers and source of goods exist. It
is the ineffective use of these areas that paved way for vendors or small business
operators to go back to the CBD. However, the city authority identified other areas for
permanent markets where informal sector operators ought to conduct their business.
These areas include Kitangiri, Igogo, Igoma and Buzaruga. Below is the table showing
their condition.
Table 7. Areas designated for city council markets
S/N Name of
Market
Place Type of business The present condition of
business
1 Kitangiri Kitangiri Selling of used clothes
(mitumba) 68 tables
Very little selling of
'mitumba' on going
2 Igogo Igogo Designated 30 kiosks for
selling used spare parts
Only 5 kiosks are on
operation
3 Igoma Igoma 120 spaces for selling” old
garments "mitumba"
Very few petty traders
operating here
4 Buzuruga Nyakato
(Behind the
Buzuruga
Bus Stand
120 spaces for selling”
mitumba
No mitumba business is
taking place there
Source: Mwanza City Council 2001.
The table above shows that there is little operation of the intended business in the
markets. Again, the main reason for poor utilization of these areas is locational in nature.
The city council admitted that petty traders do not like to use the designated areas due to
lack of customers, poor accessibility particularly transport. Petty traders interviewed
complained of the high cost of transporting “mitumba’ from the CBD where they from
whole sellers from Indian traders to areas like Igoma and Buzuruga. For instance, it costs
Tshs. 1500/= - 3000/= for a trip to hire a vehicle from the CBD to Sabasaba. That sweeps
36
away the whole profit. This they argued is the reason why they prefer to locate their
business enterprises at the CBD.
Eviction
After the informal sector operators having not responded positively to go to new areas,
the city council has been forced eviction from the CBD to the new area.
In 1996, the Municipal Council had to evict traders from the CBD. Informal sector
operators left the CBD for few months only and soon went back. In the mid 2000, the
city council tried again to evict informal sector operators, but there was a fight between
the two stakeholders leading to destruction of city vehicles and injuries in both parties.
This exercise did not succeed.
On their part, informal sector operators have written a letter to the city council requesting
to do business at the CBD. This letter with Ref. No. WMN/MZA/2000/07 dated 21st
December 2000 identified six areas at the CBD where they would like to operate their
activities These areas are:-
The Sahara ground
The area along Pamba road
The area in front of Pamba Secondary School
The road from Liberty that joins Uhuru street
Kamanga area (along the road to state house, near the High Court of Tanzania and
near the RC offices
Along the fence of Butimba Health Centre.
Mwanza City Council rejected these requests and is still insisting that vendors should go
to the new areas. The rejection was made on 09/01/2001. The experience from Dar es
Salaam shows that eviction was not a better option rather a strategy to integrate informal
sector operators in the central area function was desirable. For instance, the Dar es
Salaam City Council proposed sharing of some streets. These areas are like Congo at
Kariakoo and some streets at Kisutu area. This seems to have worked and have been
37
minimized quarrels. Therefore, Mwanza city council could learn from the experience of
Dar es Salaam City.
On the visit to the requested areas in Mwanza City, it was observed that informal sector
operators could use these areas. Only that some regulations are to be put in place so that
the problems such as environmental degradation, traffic obstruction which emanate from
their operation are controlled. In the interview with some informal sector operators, they
said they are willing to maintaining environment through contributing money for
cleaning or cleaning by themselves.
However, though the Mwanza City Council changed the use of nine(9) areas, identified
four (4) areas and six “gulio” periodical markets, this study will concentrate on three
areas of different location and characteristic to represent others. These areas are the
Mlango Mmoja (representing areas with few spaces for vendors compared to demand)
and Sabasaba (representing the abandoned areas) and the CBD since it is very demanded
by the informal sector operators.
4.5.1. The Case of Mlango Mmojaa) Introduction
Mlango Mmoja is located about one kilometre from the city centre along Nyerere road.
Uhuru borders it to the north, the river Mirongo to the south, the Rufiji street to the east
and to the west.
Before 1993, the area used to be a “Pombe Shop” selling local brew. It used to have
different types of local bear like Kangala, Rubisi, Mbege, etc. However, Mwanza City
Council reported out that up to the year 1993, Mlango Mmoja was not effectively
operating as far as local brewing is concerned. Consequently, MCC decided to change its
use to be occupied by small business operators. The reasons for selecting this area in this
study is that, this area was in principle accepted by informal sector operators, but it could
not be enough compared to the demand. Therefore, informal sector operators are using
the surrounding areas to conduct their business and others going back to the CBD.
38
b) Relocation Process
In 1993, Mwanza Municipal Council (now Mwanza City Council) had to review all the
areas where vendors were operating including Mlango Mmoja. MCC found that Mlango
Mmoja was not fully utilized. On its meeting on 15/3/93 Min. no. 20/1993 (d), UPC
officially changed the use of the area from being a Pombe Shop to be a petty trading
centre. The UPC designated 350 stalls for selling ‘Mitumba”, 31 kiosks and 70 “Mama
lishe”. The informal sector operators were not involved in that meeting.
The Mwanza city council had to spend a lot of money to rehabilitate the area by building
rooms for shops, restaurant, the office ward executive officer and toilets.
There were no proper criteria for selecting of who (informal operators) and what to be
relocated where. Table 6 shows that almost every new area comprises almost all types of
trading activities.
However, the relocation process was not followed so that every vendor with an area at the
CBD could also get a place in new areas. Observation the following chart.
Chart 1. Procedures for relocation of informal sector operators
(a) Ideal procedure (b) What happened
Source: Field survey 2001
From the above chart, illustration (a) shows the Ideal procedure that was to be followed.
This means after the meeting, UPC registration was take place. Here all vendors could be
registered and allocated new areas free according to their type of activities. But what
happened as own on illustration (b) is that from the UPC meeting according to interview
UPC Meeting UPC Meeting
Registration Shifting
Allocation of areas
Shifting
39
with vendors at Mlango-Mmoja and CBD, registration did not take place accordingly
rather it was characterized with favoritism and bribery. To get a change at Mlango-
Mmoja, costed not less than 100,000/=(from interview with vendors at the area), which is
a lot of money for many of vendors as it exceeded their capital. "So far most of stalls
were not allocated to vendors but with held by MCC officials and later sold or rent to
vendors’’ one respondent complained.
This way of relocation had a big implication on the vendor's side as most of them could
not be favored and find areas to do their business. They were forced to go to the outskirts
of the city where trading could hardly take place. Consequently, informal operators could
not make it in the new areas and decided to go back to the CBD.
Table no. 8. Key actors involved in relocation process
S/N Actor Activities Comments
1 UPC Identified areas for relocation by
changing their use and provision of
new areas
Succeeded in identifying
areas and to a certain
extent relocation
2 District
Commission
er
Held a meeting with vendors
“Machinga” I 1996 at Nyamagana
ground urging them to shift to new
areas.
The DC had to intervene
to support to convince
the "Machinga" shift to
the new areas.
3 Vendors
'Machinga'
Shifting from the old areas to new
areas.
They refused until the
city authority used force.
Later, the vendor went
back to former areas.
Source: Field survey 2001
c) Activities and characteristics of operators
Though the area was designated for accommodating only 350 'mitumba' sellers, 31 retail
shops and 70 Mama ntilies, now the market has more activities. The activities that take
place at Mlango Mmoja are as follows.
40
i) Selling of garments
This includes selling of used clothes, shoes and handbags. Not only used clothes, but also
the new ones are sold. Some petty traders in this area have tables, others just carry their
goods and walk around selling buyers.
ii) Tailoring
This is another activity taking place at Mlango Mmoja. This involves sewing of the new
clothes like Khanga, Vitenge and trousers to mention a few. Owners of shops are in most
cases engaged in the operation this activity.
iii) Food vendors (Mama lishe) and restaurant
These are meant to serve petty traders and at times buyers with food at a cheap price.
Through the intended number were 70, the observation made during this study shows that
there are many Mama lishe there. Some food vendors prepare their food within the
trading centre and others prepare food at their homes, carry it to the centre, and sell.
Since there are many food vendors, often they go around convincing petty traders to buy
their food.
iv) Ironing
In order to attract customers, people there have specialized in ironing used garments sold
here. These have specific customers to iron their clothes.
v) Wheelbarrow operators
Carrying of luggages from lorries and transporting them to Mlango Mmoja is another
very important activity taking place there. This is done using wheelbarrows. These
wheelbarrows are also used carry luggages in the morning from stores to the tables and
back to the stores in the evening.
However, this area is not enough to accommodate the number of people who want to
operate business there. Consequently, some are conducting their business outside the
41
fence. Some are now operating around the bridge near the petrol station and along the
Muslim cemetery. Others have decided to go back to the city centre (CBD).
d) Implication of relocation
i) The operators livelihood
The relocation of petty traders to Mlango Mmoja has affected operators. This means that
in the former areas of Makoroboi for instance, they used to get many customers to and
from the bus stand and Kamanga ferry. By moving to Mlango-Mmoja sales and profits
that the sellers used to have declined. Interviews with some of the operators reveals that
even those with tables at the area are not doing (selling) well. They said nowadays it can
take a seller up to a week without even selling, this leads to reduction in real income
The business at Mlango Mmoja is very competitive. It has almost the same commodities,
same prices hence having problems with catching customers. This forces operators to
lower their prices and consequently leading to losses.
ii) The urban economy
On the side of the economy of the city, the City Council has been able to collect tax since
the operators are known, the area is known and this has simplified the administrative
work.
Apart from the fact that the city council has been able to collect tax, the economy has
been affected negatively. If the informal sector operators have their incomes lowered by
relocation, while they informal sector operators constitute more than 60% of
employment, automatically their contribution to the GDP of Mwanza is lowered.
iii) The urban environment
Observation made during the study shows that the haphazard solid waste disposal in the
city is continuing. When interviewed, the Deputy city planner, Mr. Ntabo said that few
months after relocation the environment of the city was very clean. Nevertheless, the
42
returning of the petty traders to the prohibited areas, posses difficulties in cleaning the
environment. Now the MCC is facing the problem that it used to have in the past.
4.5.2 The Case of Sabasabaa) Introduction
Sabasaba is located about seven (7) kilometres from the CBD along Makongoro road. It
boarders Kiseke to the east and north, Pasiansi to the South and Makongoro road.
Formerly, Sabasaba used to be a trade fair ground before it was changed in 1996 to
accommodate informal sector operators. This area was intended to accommodate
“Mitumba” sellers, “Mama lishe” Kiosks and a Sunday Market.
The City Council changed the use of nine (9) areas, among which is trade fair ground of
Sabasaba. The reason for selecting this area in the study was to examine or to have a
study on the areas that are rejected by the informal sector operators.
b) Relocation process
The Urban Planning Committee (UPC) held a meeting on 11/01/1996, min. No. 2/1996
and agreed to change the use of Sabasaba ground from a trade fair to an area for informal
sector operators. The decision to change the use of that area was reached by the UPC
after noting an increase of informal sector operators in the city. Besides, this area was not
used.
The activities designated include a Sunday market. Then provision of 966 tables for
selling used clothes were agreed up on to operate, 10 Mama lishe huts, retail shops 89
and a Sunday Market. Presently according to the city Council, only the Sunday Market is
still on operation. So one wonders where the informal operators are operating. This study
reveals that they are operating in the streets along the CBD.
The criteria for selecting informal sector operator and key actors are the same as the case
of Mlango Mmoja. The difference is that the demand for this area was low due to its
43
location being far from the CBD. However, the UPC also did not follow the procedures
as in chart 1(a), it adapted chart 1(b). This means that there was no registration of
informal sector operators and allocation of stalls, but vendors were evicted from the CBD
and forced to go there. Interview with vendors who went there said they could not find
customers hence quitted the area quickly.
c) Activities and characteristics of operators
Only the Sunday Market is still on operation. So there is a good interaction of buyers and
sellers and this involves a variety of goods. These goods are clothes both used and new
ones, local brew, food vendors, furniture, fish and vegetables to mention a few.
In this Sunday Market, there is no restriction of entry to the area. Many traders take their
goods from the CBD where they permanently operate to the area.
d) Implication of relocation on
i) The operators
Most operators did not go to the area because it is too far from the market where
customers are available. They have remained without a proper area to do their business.
Subsequently, their livelihood has been negatively affected. Doing business in insecure
environment has reduced operator's earnings. Reduced earnings means reduced capacity
on their side to meet necessary needs like health services, education and water hence
increasing the persistence of urban poverty in the city.
Implication of relocation on the urban economy and urban environment are the same as
those of Mlango Mmoja.
4.5.3. The Central Business District (CBD)a) Introduction
This is the area that is highly demanded by the informal sector operators. It involves
streets like Pamba, Rwagasore, Lumumba, Nyerere, Liberty, Nkrumah, Station, Posta,
Kenyatta, Karuta and Makoroboi. This is the area that posses big shops, bus stand, the
44
central market, the railway station and all big offices. Further, the area is well furnished
and accessible by all means of transport. All these facilities have been attracting people
to be there hence attracting more informal sector operators. According to the interviews
made involving eleven (11) interviewees, one from each of the above streets, all of them
admitted to be earning more money at the CBD rather than in the relocated area.
As per the MCC (2001) the activities that are allowed to take place here are tailoring,
selling of newspapers, shoe shining, stamp making and watch (clock) repair. These
activities are known to be environmental friendly and they are easy to control since all of
them are stationary, simplifying the work by the city council to collect revenue.
This area is chosen simply because of its importance and potentiality as far as informal
sector operators are concerned. Therefore, here all the activities and their locations will
be revealed.
When this study was undertaken all of the informal sector operators had gone back to the
CBD from the relocated areas.
b) Activities and characteristics of operators
All the Informal sector activities are taking place there except urban agriculture and
fishing. Below are types of activities and their location. There are three activities mainly
trading, manufacturing and services provision.
i) Trading activities
Trading involves selling of used clothes at Market, Makoroboi, Lumumba, Karuta streets,
also Kirumba/Mwalomi express stand. The sellers in this case have the characteristics of
just hanging their clothes on walls of houses, carrying in their hands and just lying them
on the ground and calling for customers.
Under this category, there is selling of fresh and fried fish especially in areas like
Kamanga ferry (for fresh fish) and Railway Station (for fried fish). These areas are
45
terminals of railway station where there are travellers who often demand fish to sell in
other regions apart from Mwanza. The Kamanga is potential since there are traveller
going out of the city to Sengerema, Geita and other regions and those who are coming to
the city. Therefore, this is a big market catchment area.
There is also trading in vegetables. This business is nowadays very famous at the street
joining Liberty and Uhuru. Because vegetables are just put in open areas on a piece of
sack, and this may be dangerous to human health as dust and pathogens can easily
contaminate vegetables.
Other goods involved here are selling of used spare parts, used and used furnitures.
These are found in areas like the Sahara, Pamba and Rwagasore.
ii) Manufacturing
This important activity comprises carpentry, welding and shoe leather making. Carpentry
mostly take place at Rwagasore street, Sahara ground, Lumumba and Karuta. In these
areas, some of the operators are registered but most of them are not. They make
cupboards, beds, and other related products. These goods are taken to markets for being
sold though they are also sold at the manufacturing area.
Leather shoe making takes place at Market Street and they make and sell them in the
markets and or sell to other traders.
Making lamps (Koroboi) at Makoroboi is also a famous activity. It employs about 60
operators and now it is operating at the central city park.
iii) Services
Involved here are wheelbarrow carrying luggage to various parts of the city. The Mama
lishe also operate at the CBD. There is also barber/saloon, shoe shining, watch, TV and
radio repair
46
c) Implication of activities on
i) The operators livelihood
All the eleven operators interviewed eleven of them each from one street reported that
they earn more at the CBD than elsewhere. For instance, they said it is normal to spent
one to seven days without selling anything at Mlango Mmoja while at the CBD every
body sells. So by selling in good areas such as the CBD, the income is also good, thus
increasing capacity to meet necessary needs like water, education and health services.
ii) The urban economy
Informal sector operation has increase the revenue of the city (refer table no.4&5). Now
about 60% people are employed in the sector hence reducing unemployment and raising
the resource capacity of the city.
On the other hand, it is difficult to collect (from all operators) tax from the unorganized
operators. Some operators have a tendency of evading tax. Though their contribution to
the revenue and resource generation capacity of the city is high, the percentage at which
they are contributing is falling (table no 4&5)
iii) The urban environment
Observation made in this study reveals that the city environment is not clean. The city
authority argued that three-quarters of haphazardly disposed waste are from the informal
sector operation. This is said to be the reason behind eviction of informal sector operators
from the CBD. The MCC has attempted to overcome the problem of environmental
degradation only by relocation. Other include air pollution from smokes, quarrying and
crushing and burning of stones and water pollution due to uncontrolled waste water.
47
CHAPTER FIVEFINDINGS AND RECOMMENDATIONS
5:1 IntroductionIn this research done in of Mwanza City, a number of findings have emerged. These are
different in nature and characteristics, the main ones are concerned with locational
consideration for relocating informal sector operators, choice of petty traders and others
as will be explained.
5:2 Findings and Lessons5:2:1 General findings
Relocation of informal sector operation did not consider characteristics, pattern and
relocation attributes of the specific activities being carried out. In fact, most of the
areas where informal sector operators were relocated were not attractive because they
have low customer opportunities due to poor accessibility and low pedestrian traffic
flow. This is the case for Sabasaba and other areas discussed.
During relocation process, the key stakeholders namely petty traders were not
involved in deciding where their business would be located. Had this been done could
have helped MCC to identify appropriate/ good places as well as agree on the terms
on how all parties would contribute to do away the negative impacts emanating from
the operation of informal activities.
Among the informal sector activities, Lake Victoria takes a prominent place in the
economic life of the region and the city in particular. Informal activities emanating
from the presence of lake Victoria are fishing, buying and selling of fish, frying and
preservation. These activities are not prominent at the CBD. This being an important
resource offer more or less stable employment and economic opportunities to the poor
residents, most of them in informal sector.
In the new areas, most of strategic points were not given to petty traders, rather taken
by officials but rent to other petty traders. This was noted during the interview with
some of petty traders.
48
5:2:2: Findings at Mlango Mmoja
The Mlango Mmoja trading centre area is not sufficient to meet demand. This has
created congestion in the area leading to the decision of some of petty traders to get
out of the area. Consequently, informal sector operators are returning back to the
CBD.
Due to congestion and competition, the sales are low hence decreasing the income of
the vendors. Interview with some of the operators noted that sometimes one could
spend a week without selling anything. This has forced some vendors to carry their
clothes from one office to another or even lending employees and payment is made at
end of the month.
Many business enterprises at the area do not belong to vendors seen there. Interview
with some of the vendors revealed that the owners of capital are well place officials in
the city. The vendors at the site (machinga) are just employees. In fact, few target
group members (machinga) benefited from the relocation and provision of that space
for vendors. It can thus be said that the officials took advantage of the relocation
exercise to get stalls for employing vendors to sell for them.
5:2:3 Findings at Sabasaba
The area is too far from the City centre, that is seven kilometres, besides,it lacks
important conditions for informal operators to use it. It is located at the area that has
little or no pedestrian traffic hence poor market for the goods. This has led to
abandonment by most vendors leaving only the occasional, Sunday market to operate.
This area also lack necessary services like water that is very important to operators.
The area seems to be isolated from the city system/network, it is just surrounded by
new established streets. Infrastructure services are therefore still to be provided, no
wonder the vendors could not operate in this area.
5:2:4 Findings at the CBD
There are areas at the CBD that the Machinga can use without problems. The area
like Sahara, which is currently used by the Sahara City company for recreation
purpose (Bembea), is having most qualities for petty trading.
49
Interviews with some of informal sector operators, revealed that if they are left to do
their business at the CBD, they are able to establish a strategy for maintaining
environment. Vendors said they could maintain through contributing money for
cleaning or even cleaning themselves. They continued to argue that they are also
willing to pay tax. But the city authority should leave them conduct their business.
This is a good starting point and a gesture for negotiation, which MCC ought to
pursue and explore.
The CBD has all the conditions necessary for petty trading to take place. It has a
market for all kinds of goods involved in the business. The presence of bus terminals,
railway station and many public offices provide a wide range of customer and market
for vendors (Machinga) goods and services supplied.
5:3 RecommendationsHaving seen the challenges, the strategies the MCC has adapted to overcome the
challenges some of the recommendations which can be used to offer solutions to the
problems emanating from the operation of informal sector in the city of Mwanza are:
MCC should review the regulations so as to adopt more flexible and realistic
regulations(accommodate informal sector but under regulated system.
First, MCC should recognize the importance of informal sector activities in well
being of its inhabitants. It should not ignore or underrate them, as they are main
sector that employs most of the city’s residents. So, MCC should treat them bearing
in mind that, it is the source of livelihood for the poor as well as those not very poor.
It should be respected just as other economic activities of formal sector. This implies
that in relocating such activities all efforts must be made to find a consensus.
MCC should allow informal sector activities to take place at the CBD. It should use
the experience of the city of Dar es Salaam where they have managed to minimize the
problem. In this case, MCC should not just leave informal sector operators do
business in the areas they demanded, but allow them under restricted or regulated
framework of operation including specification of allowed activities, waste collection
systems and space use regulations. For instance, the Sahara ground is currently used
50
for recreation purposes, this could be located elsewhere in the city. This area could be
designated for informal sector operators. Sharing of some streets could be explored.
This attempt has been effective in the city of Dar es Salaam. The road between the
Liberty and Uhuru streets has no through traffic, so it should turned into multi-use, to
be used by informal sector operators.
From the interviews that were made, the ISO said they are willing to form a
mechanism to do away with environmental degradation. Instead of evicting them
from the CBD, MCC should just organize them in such a way that treatment of waste
is possible. MCC in this case will not incur cleanness costs, but it will incur the costs
of transporting already collected wastes to the disposal area.
It has been noted in this study that, there are differences of interest between
stakeholders like SMP, NGOs (financiers) and informal sector operators. This
problem can be overcome through negotiation and decision on the operation and full
involvement of the informal sector operators. Any future relocation that is to take
place, MCC should not only decide. The operators (stakeholders) should be involved
to participate in the identification of suitable areas for their business.
Informal sector activities should be incorporated in future plans. In this case,
wherever neighbourhood is designed there should be a provision for informal sector
activities. In the design, the location should consider factors such as basic services,
accessibility and threshold population(customers) necessary to support the activities.
Informal sector operators advised to form an organization that will represent opinions
in MCC decision making process. This organization will also help mobilize all actors
in informal activities that are found in the city. The organization will also be a forum
for educating operators on the need to abide by the law and respect environmental
requirements in their operation.
The existing markets (Gulio) can be maintained. These provide chance for the
informal sector operators to sell their commodities without interference since entrance
is free. Further, the markets are located in places where customers are accessible.
MCC should identify areas out the CBD that are having petty traders and consolidate,
expand them and officially recognize the instead of imposing new areas that are not in
51
use by informal sector operators. This is possible due to the presence of wide spread
of temporary markets commonly known as ‘soko mjinga’. These shows the interest of
people and it is possible to use them since the outskirts is not so built as the case of
the CBD. The city authority in this case should provide basic services like water,
electricity and waste collection equipments to maintain their working environment.
The informal sector operators should contribute and be responsible for managing.
MCC should introduce pedestrian streets at the focal points of the CBD like
Makoroboi, between Liberty and Uhuru streets and individuals can sell or buy the
informal sector commodities.
5:4. ConclusionThe attempt to relocated informal sector operators to near areas in the city of Mwanza has
proved not effective. This has been noted in table 6 that only three relocated places out of
nine have been successful. This shows that, that move has to be checked and form other
means to treat informal sector operators in the city as recommended in section 5:3.
However, experience from other cities show that eviction is not a solution to informal
sector operation. This has led to fight and loss of property both belonging to the city
authority and the informal sector operators. As recommended in section 5:3, this should
not be entertained as it can be avoided.
It is therefore important that urban planners and city administrators retreat to negotiation
and dialoguing in resolving conflicting interests. This is particularly where some of the
stakeholders are among the poor who need support to survive.
It should also be interest of MCC and other local government to perceive informal sector
operators as important economic sector which is critical in alleviating poverty and
creating employment. If this is done, probably the witch hunting attitude will change for
the betterment of the entire urban development process in Mwanza.
52
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Report Of A Case Study In South Gujarat, India. Journal of Peasant Studies,
Vol.4.
2. Bromley, R.((1985). Planning for Small Enterprises in the Third World Cities.
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APPENDICES
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TABLE OF CONTENTS
DEDICATION...............................................................................................................................................II
DECLARATION.........................................................................................................................................III
ACKNOWLEDGEMENT...........................................................................................................................IV
ABSTRACT...................................................................................................................................................V
ABBREVIATIONS......................................................................................................................................VI
LIST OF TABLES......................................................................................................................................VII
LIST OF PLATES......................................................................................................................................VII
LIST OF MAPS..........................................................................................................................................VII
CHAPTER ONE.............................................................................................................................................1
BACKGROUND, RESEARCH ISSUES AND METHODOLOGY................................................................11.1 Introduction......................................................................................................................................11.2 Background; informal business sector in Tanzania......................................................................11.3 Informal business sector in Mwanza City......................................................................................21.4 Statement of the problem.................................................................................................................31.5 Objectives of the study.....................................................................................................................51.6 Research Question............................................................................................................................51.7 Methodology......................................................................................................................................51.8 Definition of informal Sector...........................................................................................................71.9 Organization of the report...............................................................................................................9
CHAPTER TWO..........................................................................................................................................10
INFORMAL SECTOR ACTIVITIES: NATIONAL AND CITY CONTEXT.................................................102:1 Introduction....................................................................................................................................102.2 Overview of informal sector activities in Tanzania.....................................................................10
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2.2.1 Past and recent trends.................................................................................................................112.2.2 Policy environment......................................................................................................................142.2.3 Prospects of informal sector in Tanzania..................................................................................152.2.4 Characteristics of informal sector activities..............................................................................152.3 Informal sector activities in Mwanza...........................................................................................162.3.1. The categories of informal sector in Mwanza City..................................................................172.3.2. Diversification.............................................................................................................................192.4. Key actors and location preferences............................................................................................20
CHAPTER THREE......................................................................................................................................23
INFORMAL ACTIVITIES VS URBAN DEVELOPMENT...........................................................................233.1. Introduction...................................................................................................................................233.2. Positive and negative impacts of informal sector activities.......................................................233.2.1. Impacts on land use....................................................................................................................233.2.2. Impacts on Environment...........................................................................................................243.2.3. Impacts on economy and employment.....................................................................................253.2.4 Impacts on Revenue generation.................................................................................................253.3. Challenges of informal sector.......................................................................................................263.3.1. The Experience from the city of Dar es Salaam......................................................................263.3.2. The case of Mwanza City...........................................................................................................29
CHAPTER FOUR........................................................................................................................................32
PUBLIC RESPONSE TO INFORMAL ACTIVITIES IN MWANZA...........................................................324.1. Introduction...................................................................................................................................324.2. Neglect of informal activities: pre-recognition...........................................................................324.3. Recognition.....................................................................................................................................334.4 Post recognition..............................................................................................................................334.5. Strategies to accommodate informal sector activities................................................................334.5.1. The Case of Mlango Mmoja......................................................................................................384.5.2 The Case of Sabasaba..................................................................................................................434.5.3. The Central Business District (CBD)........................................................................................44
CHAPTER FIVE..........................................................................................................................................48
FINDINGS AND RECOMMENDATIONS.................................................................................................485:1 Introduction....................................................................................................................................485:2 Findings and Lessons.....................................................................................................................485:3 Recommendations..........................................................................................................................505:4. Conclusion......................................................................................................................................52REFERENCES.....................................................................................................................................53APPENDICES.......................................................................................................................................54
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