Zimbabwe’s Economic Woes Fuel Rise of Street Vendors

By Shingirai Vambe

Following the 2023 general election, Zimbabwe has witnessed a significant surge in the number of street vendors operating in urban centers and small towns across the country. This growing trend is not merely a reflection of entrepreneurial spirit, but rather a direct consequence of deepening socio-economic challenges that continue to erode the foundations of formal employment and structured commerce.

In the aftermath of the election, the closure of companies and an alarming rate of retrenchments have pushed thousands of citizens out of stable jobs and into the informal economy. Manufacturing and service sectors, already under immense strain, have failed to recover or adapt to the harsh economic environment. With limited job opportunities and no social safety nets to cushion the blow, many Zimbabweans have been forced into vending as a means of survival.

This domestic economic hardship has been further exacerbated by global shocks, particularly following geopolitical shifts such as the re-election of Donald Trump as President of the United States of America. Under his administration, a number of foreign policy decisions have had far-reaching consequences for developing nations. Key among them was the suspension of critical foreign aid and the imposition of stringent trade tariffs that have distorted global markets. These protectionist policies have contributed to the weakening of multilateral trade partnerships and severely impacted export-dependent economies in Africa and the Global South.

For a country like Zimbabwe, already grappling with governance issues and a fragile economy, the impact has been particularly devastating. The reduction in foreign assistance and tougher trade conditions have led to decreased investor confidence, currency instability, and an increasingly constrained fiscal space. As state revenues shrink, the government has struggled to provide even the most basic public services, leaving ordinary citizens to fend for themselves.

Economic analyst, Gift Mugano told the Post On Sunday Newspaper that he ripple effects are visible in every town and city pavements crowded with informal traders, roadside markets mushrooming in residential areas, and formerly busy industrial zones now deserted or converted into makeshift stalls.

“What once represented a formal economy governed by contracts and wages is now being replaced by a survivalist economy defined by barter, hustling, and day-to-day uncertainty,” said Mugano.

“Corruption at various levels of government has only compounded the problem. Instead of implementing strategic economic reforms or supporting small businesses through transparent and targeted interventions, many leaders have prioritized personal gain over national development. Funds meant for infrastructure, agriculture, and enterprise support often vanish without a trace, and policy inconsistency continues to drive local and foreign investors away,” added Mugano.

In this climate of economic disrepair and institutional dysfunction, vending has become the last resort for a growing number of Zimbabweans. While it provides short-term income and helps households survive, it is neither sustainable nor reflective of a healthy economy. It signals a deeper crisis, one in which the state has failed to create an environment conducive to growth, innovation, and human development.

As long as structural reforms are delayed, corruption remains unchecked, and global economic partnerships are undermined by hostile policies from major powers, Zimbabwe, like many other developing nations, will continue to see its people retreat into the informal sector, not out of choice, but out of necessity.

Political activist, and Legislator, Lynnette Karenyi-Kore told this publication that, the results are visible and majority of the people who have flooded the streets are young girls and women trying to make end meet and survive. she said there is need to fix the politics first and the economy will align itself with policies and are people centric.

“The increase in informalization send a wrong message to the growth of the economy and stabilization of the country’s currency with all the traders transacting in cash US dollars,” added Karenyi Kore.