Checheche: The curse of enterprising minds

13 Sep, 2019 - 00:09 0 Views
Checheche: The curse of enterprising minds Informal traders display their wares on the pavement and in front of N.Richards wholesalers at Cheche Growth Point.— Picture by Tinai Nyadzayo

The ManicaPost

Rumbidzayi Zinyuke Senior Business Reporter
A rapid growth in informal trade at Checheche growth point is threatening to drive formal businesses out, as vendors have taken over every available space on sidewalks to sell their wares, in direct competition with shops.

Checheche has always been one of the busiest growth points in Manicaland, where so much business activity happens. However, due to the economic difficulties obtaining in the country, there has been an increase in informal trade.

Tonnes of mealie-meal, flour, sugar and many other basic commodities are sold daily on every corner of the township, and in trucks, usually at far cheaper prices than those obtaining in the shops.

Big companies such as N. Richards among others, are feeling the heat. Not only do the vendors buy groceries from the shop for resale outside, they sometimes do so at a loss simply because they want cash, which they use to buy foreign currency and then make more money on the black market.

Checheche is a liquid economy, most transactions are made in cash while those that are made using mobile money or bank transfers attract a 30 to 35 percent premium.

Vendors who spoke to Post Business said everyone was seeking to survive and vending was the only viable business at the moment.

“Some of these vendors used to own shops here but because of the economic challenges, they had to close shop. Now we are all trying to survive and vending is the best way to make money. If you get cash from your sales, you can buy foreign currency and then sell it again to increase your capital,” said one vendor who requested anonymity.

According to Ms Gloria Mariga, a sugar bean producer from Chinyamkwakwa village, farmers are now forced to demand cash for their produce if they are to be able to buy food and other basic commodities at Checheche growth point.

“We used to accept all forms of payment for our sugar beans but when we get to Checheche, they demand cash for everything. In the event that they do accept mobile money, they charge us 35 percent and this becomes unsustainable for us. If a customer does not have cash I would rather keep my produce and wait for one that does,” she said.

Chipinge South legislator Cde Enoch Porusingazi said the situation with regards to vendors was a cause for concern.

“What is happening in the old township is a cause for concern. There is N.Richards, a company that pays tax to the fiscus and levies to council, then someone makes a deal somewhere and comes in front of that shop and sets up his own wares to compete with them. At the end of the day, he puts his merchandise in the back of a truck and goes home only to come back in the morning again. That is not good business practice,” he said.

“We understand that the economy is bad and everyone wants to survive, but we should do that with a bit of sanity and order, we want council by-laws to be observed and become effective,” said Hon Porusingazi.

He said council has been trying to move them for some time with no success.

“The moment that happens, they rush to seek salvation fromcommunity leaders, but we cannot be defending something that is illegal. If they want to trade, they should be given a proper place to work from. There are green markers and flea markets where they can go. This tendency of coming in front of the shops where someone has invested a lot of money is not sustainable,” he said.

“If we allow such a scenario in front of all formal businesses, it might actually frustrate those who want to conduct formal business and invest in the area.”

Hon Porusingazi said he has since engaged council to try and identify a one-hectareplot near the busy areas that will be allocated to the vendors, away from formal businesses.

“People can choose where they want to buy without any hassles. They can go to the formal shops where they buy those ‘expensive’ items because they want to, or they can go to the cheap informal markets. Such places are not rare, they are common the world over. But we cannot continue to mix formal and informal businesses,” he said.

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