Economy

by Fungai Munetsi

The Zimbabwe Chamber of Informal Economy Associations (ZCIEA) Karoi Territory Strategic Team engaged Karoi Town Council Director of Finance, Mr Shava on the 14th of October 2026, to propose a revision of the vending and hawking licence fees charged to informal traders in Karoi.

The delegation was led by ZCIEA National Organiser Florence Chabvapasi and included ZCIEA Karoi President Stancilaus Mutomba, Secretary Edson Karichi and Youth Chair Bathshebba Tazvivinga.

The ZCIEA Karoi Strategic Team submitted a formal proposal to the Karoi Town Council Budget Committee to reduce the current quarterly vending and hawking licence fee by 50%, from US$34 to US$17 per quarter.

The proposal is based on practical field evidence, the cumulative financial burden facing vendors, national policy directives and a commitment to constructive partnership with local government.

The Financial Burden on Market and Street Vendors

When reviewing the quarterly licence fee, it is important to consider the various overlapping fees and statutory costs already paid by vendors and hawkers, including:

– Daily market fees:US$1 per day, amounting to approximately US$90 per quarter.
– Statutory presumptive tax: Compulsory tax payments required by the Zimbabwe Revenue Authority (ZIMRA).
– Medical certificates of health: A mandatory cost of US$30 for vendors who handle and sell food.

When these costs are combined with the current US$34 quarterly licence fee, they create a significant financial barrier for low-income market and street vendors.

Evidence-Based Research Findings

A 2024/2025 joint study by Women in Informal Employment: Globalizing and Organizing (WIEGO) and ZCIEA examined the opportunities and challenges faced by street and market vendors in Karoi.

The study found that 95% of informal traders in Karoi do not have operating licences. This is not due to unwillingness or defiance, but because the combined fees—particularly the US$34 licence fee—are beyond their financial capacity.

Reducing the quarterly licence fee to US$17 would help ease this financial burden, improve compliance and support more consistent revenue collection for the Council.

During the discussion, Mr Shava indicated that the Council was considering a proposal to charge approximately US$1 per week for vending, as a possible reduction from the existing hawking fee of US$4 per day, which he noted is mainly charged to Zambian hawkers.

The Chamber That Delivers