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For Farai Chikanya, 57, talking about people losing their jobs after the government-imposed shutdown in Zimbabwe was not too much of a bother.
Having been retired in 2015, all he wanted was to reopen his mill, which operated in an open space in the high-density suburb of Glen View in Harare.
But in addition to the loss of income due to the coronavirus, Chikanya faces an additional obstacle. His business operated outside the sites designated for such businesses, in other words, illegally.
For Chikanya, the blockade has meant loss of income for more than a month, cutting off her ability to pay the rent or feed her family.
He knows the Zimbabwean government is struggling financially and did not expect the country to be first in line when global lenders handed out support to combat the impact of the coronavirus, he said. I did not expect financial support from the government. All he wanted was to go back to his mill.
There are many like him.
According to Farai Mutambanengwe, founder and executive officer of the Zimbabwe SME Association, small-scale operators are not holding their breath for a government stimulus package.
‘People just want to get on with their lives’
“From our membership, there doesn’t seem to be much cry for support, but rather about being able to operate,” he said in a text message response.
“The main problem is the interruption of the business itself, but the assistance requested is almost the same as what they wanted anyway, outside of the closing situation.”
“I think people just want to get on with their lives to the best of their ability. They are aware of the situation and the government’s limitations,” said Mutambanengwe.
Demolitions
But for Chikanya, and many others scattered throughout Zimbabwe’s capital Harare, the prospect of returning to their workstations has now faded.
This is after the Harare City Council began to demolish illegal structures throughout the capital city.
Council spokesman Michael Chideme said the municipality was taking advantage of low human trafficking during the shutdown to move the stands to properly designated sites.
However, it was feared that some of the companies operating illegally, such as the one in Chikanya, might not be accommodated at designated sites.
Chideme said that while the council would try to accommodate everyone, business operations such as those in Chikanya would have to follow approved procedures and seek accommodation in areas reserved for such businesses.
“The rationale for this exercise is to eliminate all illegal structures. Whether you have a mill or not, while you are operating illegally, you have to move,” he said.
Millions in the informal sector
In a country where the unemployment rate is approximately 90%, according to economist John Robertson, millions had turned to the informal sector, where the majority also operated from illegal spaces and structures.
The 2019 Labor Force and Child Labor Survey indicated that the share of employment in the informal economy was 76% of total employment, indicating the high levels of informality in the country.
But since the Zimbabwean government is already facing budget constraints and dealing with rampant unemployment before the virus strikes, it will be difficult to support people like Chikanya.
The consequences of the virus could put 25% of permanent formal jobs and 75% of casual / temporary formal jobs at risk, according to the Zimbabwe National Chamber of Commerce in a research note following Covid-19.
The Council’s move will only add to the numbers.
Coronavirus and hunger
“We are now fighting the battle on two fronts, Covid-19 and famine,” said a dejected Chikanya after council officials demolished the corrugated building that housed his food.
Chikanya is skeptical that he will be able to revive his business once the virus is under control.
He said the processes and costs of obtaining a business location and operating license for his grinding food were too onerous.
“When the closing is over, I don’t think my business will reopen quickly. By the time the closing is over, it would have been over a month without any income, where will I get the money to formalize my business?” lamented.
“This was my livelihood, but I don’t see us winning.”
Chikanya’s plight is shared by small business owners who, in addition to the Covid-19-induced blockade, have been caught up in the campaign to demolish illegal structures.
