The Zimbabwean government has effectively ingrained in its citizens the belief that the widespread informality of the economy—embodied by tuckshops, roadside stalls, flea markets selling second-hand clothing, hardware shops dealing in smuggled goods, and gold panning—represents true entrepreneurship. This misconception lies at the core of Zimbabwe’s current economic challenges, as it diverts attention from the deeper issues of de-industrialization, unemployment, and the erosion of formal economic structures.
By Saviour Kasukuwere
The False Promise of Informality
The portrayal of Zimbabwe’s informal sector as a thriving entrepreneurial landscape is not only misleading but also a dangerous narrative that undermines the country’s potential for real economic development. By championing this form of survivalist trading, the government has conveniently masked its failure to create sustainable, formal job opportunities and revive Zimbabwe’s industrial sector, which has been decimated over the past two decades. What is framed as entrepreneurship is, in reality, an economy of desperation, where individuals are forced to engage in low-level, unregulated trade simply to make ends meet.
This informal economy is built on precarious small-scale businesses that often operate outside legal frameworks, evade taxes, and engage in illicit practices like smuggling. While these ventures may provide temporary relief for some, they are not designed to offer long-term economic security, nor do they contribute significantly to national development. The absence of regulation in these sectors means that workers lack protection, government revenue is undermined, and the economy remains trapped in a stagnant cycle, unable to break free from its dependence on informal activities.
A De-Industrialized Economy and Joblessness
The glorification of informality must also be seen within the broader context of Zimbabwe’s de-industrialized economy. Once a hub of manufacturing and industrial activity, Zimbabwe’s economy has steadily collapsed due to mismanagement, corruption, and economic isolation. The closure of factories and formal businesses has left millions unemployed, with little hope for formal sector job creation.
In the absence of a functioning industrial base, the informal sector has exploded, with millions turning to flea markets, tuckshops, and roadside vending as their only means of survival. However, this is not entrepreneurship in the true sense of the word. Real entrepreneurship requires creativity, innovation, capital investment, risk-taking, and adherence to regulations. It is about building businesses that can grow, employ others, and contribute meaningfully to economic development. None of these qualities are present in Zimbabwe’s informal sector, which is largely driven by subsistence trading and survivalist tactics.
Politicians’ Role in Informality
Another troubling dimension of Zimbabwe’s informal economy is its connection to the country’s political elite. Politicians have been accused of running and profiting from the very informal systems they claim to champion. Many are believed to control large portions of the flea markets, tuckshops, and gold-panning operations, using these enterprises to mop up U.S. dollars, which are in short supply in Zimbabwe’s cash-strapped economy.
This symbiotic relationship between the informal economy and the political elite further entrenches the status quo. Instead of investing in policies that could promote formalization, industrialization, and innovation, politicians have a vested interest in maintaining the informal economy, where regulations are easily circumvented, and profits flow to a few at the top. This dynamic not only limits economic potential but also perpetuates a system of inequality and economic injustice, where ordinary Zimbabweans are left to scramble for survival in an unregulated and exploitative marketplace.
The Way Forward: Real Entrepreneurship and Industrial Development
For Zimbabwe to escape its current economic malaise, the government must abandon the glorification of informality and refocus its efforts on creating a formal economy that can generate real employment and foster long-term growth. This begins with a clear policy shift toward re-industrialization. Zimbabwe needs to revive its manufacturing sector, attract foreign investment, and build infrastructure that supports formal business growth.
Additionally, the government should prioritize policies that promote genuine entrepreneurship—those rooted in innovation, scalability, and adherence to regulations. This means creating an enabling environment where businesses can access capital, benefit from legal protections, and grow beyond subsistence-level operations. It also requires reforming the education system to equip young Zimbabweans with the skills and mindset needed for entrepreneurship in the modern economy, rather than teaching them that setting up a roadside stall is the pinnacle of business success.
Furthermore, addressing the informal economy’s ties to political elites is essential. Transparency and accountability must be central to any reform efforts. The government needs to regulate informal businesses, encourage formalization where possible, and ensure that political interference and exploitation of the informal sector are curtailed.
Conclusion: A New Economic Vision for Zimbabwe
Zimbabwe’s current reliance on an informal economy masquerading as entrepreneurship is unsustainable. While the informal sector may provide short-term relief for some, it is not a path to long-term prosperity or national development. The government must take responsibility for rebuilding Zimbabwe’s formal economy by investing in industrial development, promoting true entrepreneurship, and ensuring that the informal sector is regulated and brought into the fold of the formal economy.
Zimbabwe has the potential to become a regional economic powerhouse, but this will only happen if the government abandons its false narratives about informality and embraces policies that prioritize sustainable growth, innovation, and formal job creation. For the sake of future generations, it is time to move beyond survivalist trading and toward a vision of true entrepreneurship that can propel the country forward.