THE CHALLENGES AND STRATEGIES OF ACCOMMODATING INFORMAL SECTOR ACTIVITIES IN URBAN DEVELOPMENT

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)

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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

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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

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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

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Map no. 6 Mwanza Central Business District informal sector operators.

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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

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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.

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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.

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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

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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

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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.

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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

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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

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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.

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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.

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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.

Pergamon Press, New York. USA

3. Dandi,D.S.(1999), Institutional Framework for Employment in Tanzania,

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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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