Zimbabwe’s recent economic policies have significantly impacted small businesses and informal traders, particularly in constituencies like Nkulumane. The Finance Act 2024, gazetted in October 2024, introduced several amendments aimed at enhancing revenue collection and improving taxpayer compliance. Notably, a 5% tax was imposed on informal traders and tuckshops, and a 10% withholding tax on gross winnings from betting activities. While these measures aim to broaden the tax base, they have inadvertently placed additional burdens on emerging entrepreneurs.
In tandem with these fiscal changes, the government issued a 48-hour ultimatum to all local authorities, demanding the immediate removal of vendors from urban streets. This directive, aimed at restoring order and addressing health and safety concerns, has disrupted the livelihoods of many informal traders who rely on street vending as their primary income source.
In Nkulumane, these developments have exacerbated existing economic hardships. The constituency has witnessed the closure of prominent businesses, leading to increased unemployment and a surge in informal trading as residents seek alternative means of survival. The enforcement of stringent tax laws and the crackdown on vendors have further strained the community’s economic resilience.
MP Desire Moyo acknowledges the gravity of these challenges but emphasizes the need for self-reliance and community-driven initiatives. He has been proactive in mobilizing resources to address the constituency’s socio-economic issues, engaging potential donors, NGOs, and corporate partners to support key projects and initiatives. Moyo advocates for establishing income-generating ventures that reduce reliance on external funding and promote sustainable development within Nkulumane.
Irene Moyo, Head of Communications in the MP’s office, echoes this sentiment, highlighting the community’s resilience and determination. She notes that despite the economic constraints, the people of Nkulumane are committed to improving their circumstances.
However, the current policies are hindering their progress. “We have young people and women dedicated to changing the trajectory of their families, but these measures are turning their aspirations into mere dreams,” she laments. The lack of a supportive environment stifles local economic growth and dampens the entrepreneurial spirit within the community.
To mitigate these challenges, a multifaceted approach is essential. The government should consider revising tax policies to accommodate the unique circumstances of small businesses and informal traders. Implementing a tiered tax system could ensure that tax obligations are commensurate with business sizes and capacities, thereby promoting compliance without stifling growth.
Additionally, creating designated trading zones equipped with necessary amenities can provide vendors with secure and hygienic environments to conduct their businesses. Such initiatives would formalize informal trading, enhance revenue collection, and improve urban order without depriving citizens of their livelihoods.
Furthermore, fostering public-private partnerships can attract investment into local projects, stimulating economic activity and job creation. By collaborating with community leaders and stakeholders, the government can develop policies that balance regulatory objectives with the socio-economic realities of its citizens.
In conclusion, while the challenges are significant, they also present an opportunity for Zimbabwe to recalibrate its economic strategies. By adopting inclusive and flexible policies, the nation can empower its citizens, promote sustainable development, and move towards a more prosperous future.
