Formalisation of Street Vending in Dar es Salaam: Implementation and Enforcement of the Wamachinga Identity Card Initiative

Abstract

Street vending in urban Tanzania is a big sector that touches different activities. This research paper applies the ‘forbearance’ conceptual understanding to investigate the introduction and implementation of small traders’ Identity Cards or simply Wamachinga IDs as an official formalisation strategy. It reports the findings of a qualitative research design undertaken to explain the process of formalisation of street vendors and their trade in Dar es Salaam region. Multiple interpretations of the strategy were noted, such as a technique to collect data for further planning, a revenue collection tactic and an approach to equality between informal and formal traders. The study found that stakeholders embraced the initiative as progress towards gaining business freedom and access to improved earnings while boosting the government's coffers from the so-called informal sector. Additionally, the study found that the initiative had exposed challenges such as the lack of some important personal information in the IDs. It is hence sometimes dismissed as a politically-motivated initiative lacking legality. Moreover, the Local Government Authorities (LGAs) face challenges in managing business waste, business spaces, congestion and collection of some other revenues. Some formal business people/enterprises were reported to recruit young men and buy them Wamachinga IDs to sell items on their behalf. This was noted as a trick for tax evasion, which impedes tax compliance efforts. The study, therefore, recommends a participatory approach to improving the Wamachinga ID initiative alongside related by-laws to address the challenges this ID system faces.

Keywords:

• street vending
• informality
• urban Africa
• livelihood
• forbearance

Acknowledgments

The authors would like to thank Professor Anne Mette Kjær, Political Settlements and Revenue Bargains in Africa team from Denmark, Uganda and Tanzania, as well as editors and anonymous reviewers who will provide comments and advice.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1 An umbrella association that represents and protects the interests of the micro-enterprise businesses in Tanzania.

2 The Association of Roaming Businessmen in Tanzania (‘Shirika la Umoja wa Machinga Tanzania’ or ‘SHIUMA’)

3 Kiswahili term for a small administrative unit at a street level in the structure of a local government.

4 One of the biggest commercial banks in Tanzania

5 Presentation statement to discuss how to plan for small businesses and service providers

6 A Kiswahili abbreviation for coalition of citizens’ constitution

Additional information

Funding

This work was supported by ‘DANIDA Fellowship Centre and REPOA.’ The research for this paper was part of a larger research Ph.D. project named ‘Challenges of Formalizing Street Vendors’ Businesses in Dar Es Salaam City, Tanzania.’

Notes on contributors

Constantine George

Mr. Constantine George is a Ph.D. candidate at the Institute of Development Studies, University of Dar es Salaam. His Ph.D. study focuses on the Challenges of Formalising Street Vendors’ Businesses in Dar es Salaam City, Tanzania. Constantine has a background in education, specialising in Educational Planning, Management and Administration. Currently, he works as a researcher at REPOA_ a research organisation based in Tanzania. Before joining REPOA, he taught undergraduate courses at the University of Dar es Salaam (MUCE Campus). His research interests focus on the informal sector and social service delivery. Constantine holds a Master's Degree in Educational Management and Administration.

Colman Titus Msoka

Colman Titus Msoka, male, Tanzanian, Ph.D. 2005; is a Senior Lecturer-Development Studies, at the Institute of Development Studies, University of Dar es Salaam. He was a Fulbright Scholar 2016/17 and Visiting -PAUWES, Tlemcen Algeria 2015. Dr. Msoka has a background in Sociology, Development Studies, and Demography. He teaches Research Methods, States and Development and Rural-Urban Development. His research interests are centred on urban Africa, African Studies and Development Questions.

Hezron Makundi

Dr. Hezron Makundi is A lecturer and Coordinator for Postgraduate Studies at the Institute of Development Studies of the University of Dar es Salaam. He acquired his Doctoral training at KU Leuven, Belgium focusing on technology transfer and technological capacity building under the cooperation between China and Tanzania. His recent research project covers the topics of development cooperation, inclusive development, value chain analysis, decent work, and informal economies.