Informal trading as a rural livelihood strategy at Nemamwa Growth Point, Masvingo.

Abstract

Zimbabwe has been experiencing a high unemployment rate because of the contraction of the formal economy which has resulted in a significant proportion of Zimbabweans engaging in informal trading to earn their livelihoods. The article investigated the contribution of informal trading to the livelihoods of the rural households in Nemamwa. The theoretical perspective underpinning the study is the sustainable livelihoods framework. A mixed methods research approach was adopted. Purposive and random sampling techniques were used, and data was gathered through interviews, questionnaires and focus group discussions. The study established that informal trade was undertaken by both gender across all age groups to sustain their households. Engagement in informal trade accorded informal traders the opportunity to be self-sufficient and to generate incomes. The incomes enable the participants to provide the basic needs of their families as well as reinvestment in their businesses. However, some of the traders argued that the incomes were meagre and government intervention would go a long way in helping them. Some of challenges cited include lack of adequate infrastructure, high license fees, and poor business growth. The study concluded that, although the informal trade sector has its challenges, the engagement in informal trade enhances household incomes.