*Harare’s booming night economy . . .Illegal vendors flourish as laws take a nap* https://whatsapp.com/channel/0029VajK5EjDeOMygRZPPb0v Harare’s booming night economy . . .Illegal vendors flourish as laws take a napthese vendors are not only evading regulatory oversight, but are also undercutting formal retailers Emmanuel Kafe AS the sun dips below the horizon and Harare’s skyscrapers cast long shadows over the bustling streets, the city transforms into a vibrant open-air market. The daytime hustle of businesspeople in suits and with briefcases gives way to a different kind of energy — one fuelled by hordes of illegal vendors and marked by the cacophony of voices competing for attention. During this time, Harare turns into a sprawling marketplace, a chaotic and vibrant world where informal traders line pavements, selling everything from second-hand clothes and cheap electronic gadgets to staple foods like rice, tomatoes and potatoes. For these illegal vendors, the night is more than just an opportunity — it is a lifeline. The night is the perfect time for them to ply their trade. Not only do they avoid the prying eyes of the police, who often raid informal traders during the day, but they also catch the wave of commuters returning home from work — tired, hungry and eager for a bargain. Mr Brighton Duri, a 27-year-old father of two, is one of the hundreds of vendors who descend on Harare’s Central Business District (CBD) each night. With a solar lamp balanced precariously on a wooden crate, he sells an assortment of electrical gadgets — chargers, earphones and adapters — to passersby. “They come here because our merchandise is cheaper,” Mr Duri said, his voice hoarse from shouting above the din on the streets. “I expect better sales during this time when people are coming back from work.” He told The Sunday Mail that on a very good day he can get around US$100. “I have two children to feed,” he explained, handing a customer a grimy US$1 note as change. “This is how I survive.” The night market is a lifeline for many, but it is not without its challenges. While the daytime markets are regularly raided and dispersed by police, the streets at night become a sanctuary. Both the law and by-laws seem to take a nap. The streets, therefore, become chaotic, with vendors jostling for space and customers navigating a maze of makeshift stalls. Traffic often grinds to a halt as cars and pedestrians compete for space. *Haven for illicit trade* From smuggled goods to expired and unregulated merchandise, these vendors are not only evading regulatory oversight, but are also undercutting formal retailers, creating a ripple effect that is destabilising the city’s formal businesses. Many of the goods on offer are smuggled into the country, bypassing customs duties and taxes. Economist Mr Tinashe Chikomo said the smuggled goods are sold at prices that undercut formal retailers. “The products are mostly cheaper, because they do not go through the proper channels. “In addition to smuggled goods, expired and unregulated products are also a common sight. “Someone bought a packet of biscuits, only to discover they had expired six months ago. At night, it is hard to check labels, and the vendors are always in a hurry to make a sale. “We have actually had some people who are in the business of repackaging goods like rice in brands that are popular with consumers, selling them off to consumers as original products,” he added. Cash is king in this night economy, as products are often sold in hard currency, with vendors seeking to leverage Zimbabwe’s multi-currency system to their advantage. Some vendors purchase goods directly from manufacturers or retailers using the local currency at the official interbank rate, which is around 26 to the greenback, only to sell the same products in US dollars during their night-time operations. Their US dollar cash prices are often lower than those of brick-and-mortar formal retailers because they have less regulatory obligations. This practice is particularly damaging to formal retailers, who are bound by stricter regulations and higher overhead costs. “Retailers pay rent, salaries and taxes, and we cannot compete with vendors who have no such expenses. “They buy cheaply in the local currency and sell in dollars, making huge profits while formal retailers struggle to stay afloat,” Confederation of Zimbabwe Retailers (CZR) president Mr Denford Mutashu said. *A blow to formal retailers* The rise of Harare’s night economy, which is being replicated in other cities, has dealt a major blow to the country’s formal retail sector. “We used to have a steady stream of customers, but now people prefer to buy from the street vendors at night,” said Ms Grace Makoni, who runs a cosmetics shop in the CBD. It’s unfair competition, and it’s killing our businesses.” Public health expert Dr Johannes Marisa said night vending of food items poses a big risk to consumers, as many of the goods are of questionable quality and standards. “These unregulated products pose a serious risk to consumers. Expired food, counterfeit medicines and substandard electronics are flooding the market, and there is little being done to stop it,” he said. *Solution* CZR believes that despite the growing concerns, the authorities seem to be struggling to rein in the night economy. “There is also a need for the Government to take decisive action; law enforcers should not go to sleep. We need stricter enforcement of regulations and better oversight at the borders to stop the influx of smuggled goods. At the same time, we must address the currency issues that are driving this underground trade,” said Mr Mutashu. He also said a lot of structural issues need to be corrected to do away with the night economy. “And one way of closing the gaps of arbitrage is to always ensure that the exchange rate is realistic, is market-determined and it closes off the gap between the formal, the official and the unofficial exchange rate so that there is no opportunity for arbitrage.” Meanwhile, Cabinet last week announced a raft of measures to address challenges in the formal business sector. During the post-Cabinet media briefing in Harare recently, Information, Publicity and Broadcasting Services Minister Dr Jenfan Muswere said the Government would address the business environment by streamlining fees, charges and minimising duplication of work by its agencies, as well as improving electricity supply. Under short-term measures, Minister Muswere said, the use of electronic money will now be compulsory for all businesses. This, he said, would be achieved through the introduction of a compulsory tax payment system to ensure that every eligible taxpayer pays tax; establishment of a domestic inter-agency team to ensure informal sector compliance with tax laws and introduction of a framework that ensures that vendor licensing by local authorities is done in consultation with the Central Government. “It will henceforth be mandatory that all vendors are promptly issued with point-of-sale machines and that they open bank accounts upon registration or licensing,” he said. *The Sunday Mail*