Authors: Dr. Patricia Eunice Mkandawire, Kalunga Isaac
Abstract:
Various factors influence people‘s choice of trading location. This paperanalyses why street vendors despite the provision of formal market infrastructure stilldecide to trade from the streets. Theories of the informal economy were adopted toget insights into the issues of street vending. Based on survey results the studyestablishes that for street vendors accessibility of customers is a key consideration andthey strategically locate on the streets to avoid formalization costs such as rent, taxesand licences. Whereas for market traders selling from the formal market, a secure andclean environment is important. Therefore, policies of the informal economy shouldtake into account the nuances and heterogeneity of the sector, in that, governmentsshould come up with more inclusive policies that will accommodate all tradersaccording to their practical needs and not perceived needs such as building formalmarket infrastructure for all. Relevance to Development Studies The informaleconomy plays a crucial role in the development process of low income countriesthrough the provision of livelihood for the majority of the population. Street vendingis one area that many poor people depend on to survive. This study presents a casewere street vendors are not recognized by law and are considered a nuisance by thelocal government who try by all means to get rid of them. However, the study showsthat the recognition and appreciation of the role of street vendors in the economyremains important in economies were not many formal jobs have been created. Thusas actors in the economy, street vendors have to be engaged in decisions made bylocal government concerning their welfare. This study will therefore contribute to theavailable scanty literature on bringing out the voices of the street vendors that havebeen suppressed in many countries due to its illegality. Keywords Street Vending,Informal Economy, Local Governance
