Journal of Social Development in Africa (1986), I, 53-74 
One Dollar Workplaces: 
A Study of Informal Sector Activities 
in Magaba, Harare 
VERONICA BRAND+ 
ABSTRACT 
In spite of the informal sector's role as a major 'employer' of labour and source 
of income for many in Africa very little research has been done in this area: this 
paper reports on one study of informal sector operations in a specific urban 
location, Magaba, in Harare, Zimbabwe. 
The study concludes that while the informal sector can be seen as an 
'employer of last resort' for some, a significant number of operators are 
committed to their informal sector enterprises and would continue in them 
even if other options were open. The Magaba study highlights the operations of 
the informal sector as distinctly heterogeneous with a stratification within the 
sector that appears to be related to tenure of workplace and type of economic 
activity. These factors imply the necessity for differential treatment of the 
various subgroups of informal operators and unemployed in terms of local and 
national policy. 
Introduction 
Informal sector operators frorm part of the proto-proletariat and as such they 
form an important sector of the occupational structure of most Third World 
countries today. The distinguishing characteristics of their economic activities 
have been delineated in a number of ways. The ILO Report on the 
Employment Strategy Mission to Kenya in 1972 identified the general 
characteristics of informal sector activities as ease of access and entry, small 
scale, labour-intensive undertakings, usually family-owned, with a reliance on 
indigenous resources and informally acquired skills, and operating in unregulated, 
competitive markets. The model developed by Santos (in MacGee 1977) 
distinguished between upper and lower circuits of economic activity. The latter 
are seen to be labour intensive, having little dependence on overhead capital, 
negligible fixed costs and small inventories of goods and raw materials. 
+ Sr V Brand RSHM, Senior Lecturer, School of Social Work, P. Bag 66022, Kopje. Harare, 
Zimbabwe.
54 Veronica Brand 
In the widely popularised terminology of Schumacher, their level of 
technology determined by the 'equipment costs per workplace' comes close to 
being 'one dollar' as opposed to the so-called thousand dollar technology 
that typifies industrial production in developed countries and in the modern 
industrial sector of Third World economies. It is the very low level of input 
costs, as well as the mobility of the operation, that makes it an attainable 
option, often the only one, as a source of livelihood for large numbers of the 
urban poor. 
The informal sector concept has been criticised on a number of counts. 
Sinclair (1978) identifies the three most important shortcomings of the 
concept as the assumed homogeneity of the units, the lack of recognition of 
important linkages between the 'informal' and formal sectors of the economy 
and the static framework of analysis it prescribes. However, its wide usage 
and the lack of a meaningful alternative have led to its adoption for the 
purposes of analysis in this study. 
Surprisingly little research has been done on informal sector operations in 
Africa. Economists have only recently acknowledged this large 'hidden 
economy' operating in both urban and rural areas which acts as a major 
'employer' and provides a source of income for many thousands of people in 
most African countries. Research studies have been both limited and 
localised and information available is largely incomplete and locality 
specific. Little documented information exists on informal sector operations 
in Zimbabwe. At the same time, there has been growing recognition that this 
sector is, in point of fact, the major employer in the Zimbabwean economy, 
employing more than 450 000 people (Davies, 1978). Information relating 
to the current employment situation in the country suggests that this is likely 
to remain true for some years to come, as the expansion of jobs within the 
formal sector cannot keep pace with the number of people entering the job 
market. This was recognised by the Riddell Commission (1981) which put 
forward the recommendation that "as soon as possible a comprehensive study 
of the informal sector be undertaken".1 
Methodology 
A preliminary count and classification of informal sector workplaces in 
Magaba was made in November 1981, while the fieldworkers engaged in the 
project made themselves known in the area and carried out a familiarisation 
exercise. On the basis of the observations made and the casual information 
gathered, a preliminary questionnaire was drawn up. A small pilot study was 
then carried out in a neighbouring area following which certain modifications 
to the questionnaire were made. 
Interviews were then conducted at Magaba during December 1981. It was 
decided to interview all the self-employed informal sector workers who were
One Dollar Workplaces: A Study of Informal Sector Activities in Magaba, Harare 55 
operating in Magaba during that period and who had an identifiable workplace. 
People who were employed by shop owners were thus eliminated by definition 
- even if they engaged in small-scale productive activities. It was anticipated 
that due to the timing of the research exercise a complete count of informal 
sector operators would not be obtained, as some would be temporaily absent 
while engaged in agricultural activities (plouging and planting) in the rural 
areas. To minimise the effect of this the fieldworkers returned to the area 
during the first week of January and interviewed any informal sector operators 
who had been missing during the previous count. 
Included among the interviewees were 36 stall-holders at the Nenyere 
Magaba Shopping Centre market (unofficially known as 'Pedzanhamo'). The 
status of these people differed from that of the other respondents because they 
paid Z$ 1,05 per week to the municipality and were registered with them. Only 
one of the remaining 148 people interviewed was licensed, and he was the 
owner of a 'hot dog' stand. 
Socio-economic background 
Description of sample 
A total of 184 informal sector operators were interviewed, of these 72,2% 
were men and only 27,8% women. The group ranged in age from 18 to 70, with 
the majority falling in middle age group (30—54 years). Women were found to 
be under-represented in the under 30 age group. 
Of the respondents, 77,2% were Zimbabweans by birth and 22,8% were 
born in neighbouring countries. This figure is high compared to the national 
figure of 7% (based on the 1969 census) and the figure of 16% found in the 
socio-economic survey of the Chirambahuyo-Zengeza 4 settlement (Patel and 
Adams, 1981). All the aliens except four were men, thus supporting the 
contention that past migration policies have contributed to the growing 
problem of aliens who have been filtered out of formal sector employment and 
have few options open to them but to engage in informal urban-based activities. 
The aged, considered here as those falling in the 55 + category, represented 
40% of the alien informal sector operators interviewed, compared to 12,7% of 
those of Zimbabwean birth, whereas 32,4% of the indigenous respondents 
were under the age of 30, only two young aliens were interviewed. This finding 
is consistent with the widely supported contention that two groups particularly 
affected by the economic recession and cut back in employment during the 
1975—1980 period were the young men coming into the labour market and 
those older alien workers who lost jobs on farms, were 'retired', and because 
they lacked employable skills found it difficult to acquire formal sector 
employment.
5(5 Veronica Brand 
Of the male respondents, 73,7% indicated that they were married, 15,0% 
(mostly the under 30 age group) were single and 11,3% widowed or divorced. 
However, widows represented 51,0% of the female respondents and only one 
third of the women interviewed were currently married. The marked 
differences between the sexes in terms of marital status has a number of 
implications for assessing the importance of the sector as a cushioning 
mechanism, providing a livelihood for those who tend to be marginalised by the 
mainstream economy. The mean number of children per household of the 
married, divorced and widowed respondents was 4,0 but 'other dependents' 
mentioned totalled 536, representing an average of 2,9 per respondent. 
Area of origin and duration of residence in Harare 
Contrary to the commonly held belief that the informal sector offers a haven to 
the urban newcomer, the majority of self-employed people interviewed at 
Magaba are long term urban residents. More than half of the sample had been 
resident in Harare for more than 15 years and close to one fifth for more than 
thirty years. Seven respondents said they were born in Harare and had spent all 
their lives in the city. Using Mitchell's index of stabilisation as a criterion, it 
can safely be asserted that the self-employed at Magaba are characterised by a 
high degree of urbanisation. 
Great diversity was evident in terms of the area of origin of the respondents. 
The majority said they had come from a rural setting and only a small minority 
mentioned smaller urban centres. Hence there was little evidence of the 
'migration by stages' common in West Africa, whereby in-migrants move first 
to smaller towns before migrating to large urban centres. 
Educational background 
Although a certain amount of variation was evident among the informal sector 
workers in terms of educational attainment, the vast majority (93,5%) had not 
gone beyond primary schooling. The median grade level of schooling 
completed was grade four, with average attainment slightly higher for men than 
women. Of the men interviewed 50% had gone beyond grade five in 
comparison to only 30,3% of the women. Those who had never attended 
school at all represented a significant proportion of the group, slightly more 
than one fifth. The percentage of uneducated men was slightly lower than that 
of women. A strong association was indicated between level of education 
obtained and place of birth. Slightly more than half of the aliens interviewed 
had never attended school, as compared to only 10% of the Zimbabweans. In 
general it appears that educational differences noted among the respondents 
can largely be explained by differences in age and place of birth and 
upbringing. This finding is consistent with the historical development of the 
colonial educational system in Zimbabwe and the neighbouring territories.
One Dollar Workplaces: A Study of Informal Sector Activities in Magaba, Harare 57 
In response to a question regarding further studies completed since leaving 
school, only 14 respondents (12 men and 2 women) indicated any involvement. 
Courses taken ranged from correspondance courses in watch-repair (3) to 
welding and mechanics taken at local commercial colleges. Apart from one 
illiterate adult, all had completed at least six years of primary schooling. These 
findings indicated minimal participation by informal sector workers in nonformal 
education programmes. The degree to which the respondents had 
access to such opportunities and their perception of the expected benefits to be 
derived from them were not explored in this study. 
Employment experience 
Contrary to expectation, the informal sector workers established at Magaba 
have had considerable employment experience in the formal sector. Of the 
respondents 77,7% gave details of their prior employment. A significant 
difference was noted by sex, with 86,5% of the men having had prior formal 
employment experience as compared to 54,9% of the female respondents. The 
type of work in which the respondents had been engaged in the formal sector 
varied greatly from semi-skilled and clerical jobs in commerce and industry to 
farm work and domestic service. Some of the respondents indicated that they 
had been employed in more than one job prior to their taking up informal sector 
work. The duration of time spent in their last place of formal employment 
varied from a couple of months to 39 years. Long-serving employees 
represented a fairly sizeable proportion of the respondents, although the 
median length of time spent in the last job was five years. 
The high percentage of respondents who had formal sector work experience 
raises the question of job type preference in relation to the factors that have 
influenced their moving from formal to informal sector economic activity. 
Respondents were asked to indicate the reasons why they had left their last job. 
These generally fell into three categories: termination of employment by the 
employer, resignation of employee because of dissatisfaction with wages and 
conditions of service and dislike of the job being performed, and family and 
personal problems. Most of the reasons given for leaving employment fell into 
the first category. These findings reflect the generally deteriorating employment 
situation in the country over the period 1975—81. It is significant that 51,4% 
of the informal sector operators interviewed left jobs in the formal sector 
involuntarily, either laid off because of firms closing down or cutting back their 
staff complement or because employers left the country. Long-serving 
employees (those working 11 years or more in one job) were over-represented 
and constituted approximately one fifth of this category. 
This finding underlines the need for protective legislation governing loss of 
employment, and suggests that the current laws, while serving the interests of 
those who were engaged in formal sector employment at the time of their
55 Veronica Brand 
implementation, fail to touch a large unknown group who have been sifted out 
of the formal sector and have entered the informal sector as a last resort. In 
fact, they may seem to operate against them in that the chances of their finding 
formal employment again are decreased. The fact remains, however, that more 
than one quarter of the sample of informal sector workers voluntarily chose 
their present occupation in preference to their former job. The significance of 
this will be considered later in relation to aspirations for the future. A 
surprising finding indicated in the Magaba survey is the fact that only four men 
claimed to have 'retired' from their former job—a low figure for a group of 
respondents of whom nearly one quarter are in the 55+ year old age category. 
Characteristics of Harare informal sector 
Informal sector experience 
Termination of previous employment is closely linked with entrance into 
informal sector activity. Most of the people interviewed,(57,1%) indicated 
that they had been led to engage in their present activity because they could not 
find employment in the formal sector. The second was most frequently 
mentioned reason (by 25% of the respondents) was the experience of poverty 
and the need to support their family through the provision of supplementary 
sources of income. Other reasons for entry into the informal sector were low 
wages in the formal sector, family problems, instructions given by the ancestral 
spirits (in the case of herbalists), the influence of others and poor health. 
From this analysis of reasons given for leaving formal sector employment 
and engaging in informal sector activities, it is apparent that the lack of 
meaningful alternative employment options coupled with the inability of most 
respondents to meet their basic needs has led to the drift into small scale, 
informal sector activity. In some cases the need to supplement low wages in the 
formal sector was a direct factor in the choice of job in that self-employment 
provided a preferable alternative to low-paid jobs in the domestic and 
agricultural sectors. Some responses also suggested that for some informal 
sector operators current activities were an extension of past secondary 
income-producing efforts, which had taken on increased importance on the 
loss of a 'formal' job. 
Respondents differed greatly in terms of their length of experience in their 
current activity, from one day to fifty years. Dependence upon petty trading 
and small scale production in town are by no means a new phenomenon, and to 
ignore the deep-rootedness of this mode of production is to obscure the 
important relations between the modern economy and informal sector 
activities. 
The ILO Employment Strategy Mission identified as one specific characteristic 
of the informal sector the acquisition of skills outside the formal
One Dollar Workplaces: A Study of Informal Sector Activities in Magaba, Harare 59 
school system. This was found to be true for the respondents at Magaba when 
asked as to where and how they had learnt their trade. Thirty-six people 
(19,6%) of the respondents did not consider their activity a 'trade' that could 
be learnt and did not respond to the question. While 48% of the remainder said 
that they had learnt from friends or associates, only 3,4% claimed to have 
learnt their skills through a recognised educational institution. Twenty-three 
(15,5%) claimed to be self-taught through observation of the activities of 
others. Dependence on relatives as a source of skill was surprisingly low, given 
the commonly accepted 'kinship' bias of small scale enterprises. Only 37 
respondents said that they had learnt their trade from a relative—11 of these 
were herbalists who said that they had been taught their skills by a male 
relative on their father's side and five of them claimed that they had been 
directly endowed by the vadzimu and had been instructed in dreams. Although 
143 respondents had been in formal employment prior to their taking up their 
present activity, only seven claimed to have learnt their current trade in their 
former place of employment, through on-the-job training. These findings 
suggest that informal rather than formal channels of communication play a key 
role in the development of skills in the informal sector. The link between job 
experience in the formal sector and the informal sector activities that serve as a 
source of livelihood after the termination of formal employment would appear 
to be minimal. 
Gutkind (1963) has argued that association-based networks that cut 
across tribal affiliations and provide the urban newcomer with instruments to 
obtain a job are prevalent in African urban settings. Urban blacks are said to be 
anchored in a kin-based network, but are found to participate increasingly in 
these associations which are said to arise in response to new opportunities and 
demands of urban living. The dependence on friends and associates as a 
primary source of learning a trade which is indicated by the Magaba findings 
supports Gutkind's contention. This is further demonstrated by the fact that of 
the 118 respondents who indicated where they acquired their skill, 90 (76,3%) 
mentioned Harare. For many of the informal sector operators interviewed, 
Magaba itself has provided the type of learning environment where skills were 
acquired and information gained regarding reliance on small-scale production, 
repair or trade activities as a source of livelihood. 
Workplace 
Most of the workplaces in Magaba are located on the pavements or along the 
side of footpaths that link the area with commercial and residential areas of the 
city. The popularity of the area for informal sector operations seems to be 
derived from its location and the fact that it is a transit area for many thousands 
of urban workers in the formal sector who travel into the centre of the city daily. 
People interviewed in the Magaba survey represented four different types of
60 Veronica Brand 
locations. (Distribution of the respondents by location is indicated at the end of 
each section). 
(1) Pedzanhamo—Covered market stalls established by the municipal 
authorities. The area is fenced and tables are provided. Stalls are allocated to 
registered vendors who pay a weekly rent of Z$l,05 (36;19,6%). 
(2) Shop Pavements—Most of the people working on the verandahs of shops 
in Magaba were either engaged in production activities (e.g. making canvas 
bags, belts, etc) or were watch repairers. The majority of this group possessed 
some type of basic furniture and capital equipment such as a table, chair, 
sewing machine or watch-repair stand. All those interviewed said they paid 
'rent' for the pavements space allotted to them, usually to the owner of the shop 
outside which they worked (31; 16,8%). 
(3) Roadside—These people sell their wares and carry out their production 
and repair activities in the open spaces and along the major thoroughfares in 
the Magaba area. The majority of these own no capital and are engaged in 
either selling fruit, vegetables or cooked food, or in simple production and 
repair activites. None of the pople in these workplaces pay any rent for their 
workplace (48;26,1%). 
(4) Footpaths—Most of the respondents in this category were established on 
the open space beside the footpath leading from the Cameron Road underpass 
at the northern fringe of the Magaba area. Like those in category (2) and (3), 
they are not registered with the municipal authorities. Because they operate in 
an open space, they have a degree of freedom not permitted in the other types of 
location. Their workplaces are marked by innovative attempts to establish a 
workbench or stand. None of the workers operating near footpaths paid any 
rent for their 'stands' (69;37,5%). 
Categories (2), (3) and (4) are unregistered informal sector workers. As 
has been seen above/differences in location are associated with different types 
of tenure of workplace. For purposes of analysis, it is useful to identify 
three categories of lower-circuit workers among the respondents at Magaba, 
according to their tenure of workplace: a) Pedzanhamo stall holders who pay 
rent to the municipality for the use of their stalls, b) Storefront workers who 
workplaces to the shop owners, and c) Fringe workers who are located 
besides roads and footpaths in the area and who do not pay any rent for their 
workplace. These categories will be used hereinafter in differentiating between 
classes of respondents. 
Type of activity 
Informal sector activities carried out at Magaba as investigated in this survey 
fall into three main categories classed as 'legitimate' in Hart's (1973) scheme.
One Dollar Workplaces: A Study of Informal Sector Activities in Magaba, Harare 61 
Access to information regarding illegitimate informal sector operations is 
always difficult, so that no attempt was made to explore such areas as 
prostitution, beer brewing, gambling and pawn-broking. All the activities 
investigated were sedentary and were identified by a specified workplace as 
already indicated. Hence, pirate taxi operators were not included in the 
survey. 
The workplaces investigated in Magaba were the sites of three different 
types of activities: a) small-scale production enterprises, b) petty trading and 
small-scale distribution activities, and c) maintenance and repair services. A 
number of respondents were engaged in more than one kind of activity. 
a) Small-scale production enterprises. A total of 60 respondents were 
engaged in some type of small-scale productive enterprise. A limited range of 
products was found, and there was a tendency for people engaged in similar 
activities to be clustered in the same area. The only production workers to pay 
rent for their workplaces were 22 respondents with sewing machines who used 
the verandahs of shops, and carpenters who worked in makeshift wooden 
structures adjacent to some of the shops. For the rest, production activities 
were carried out by fringe workers on the open stretches of land alongside the 
underpass footpath. Twenty-six respondents were involved in leatherwork, 16 
in making sandals of old car tyres, and 12 in simple metal work. 
b) Repair and maintenance activities. Thirty-seven respondents were found 
to be engaged in a limited range of repair and maintenance activities, 30 
as shoe repairers, and all of them 'fringe' workers in terms of the classification 
schema developed earlier. 
c) Petty trading. A total of 5 7 respondents were engaged in petty trading and 
small-scale distribution activities, in addition to 35 stall holders at Pedzanhamo. 
Most of these activities related to the sale of food and provisions. Most of these 
trading occupations were carried out at roadside workplaces. Herbalists were 
counted among the petty traders. 
Rental and workplace 
As was noted earlier, 31 respondents (21% of the unregistered respondents) 
paid rent for their workplace, although, in all cases but one, the workplace is at 
best a piece of pavement sheltered by shop awnings. The rental paid varied 
from a minimum of Z$4,00 per month to a maximum of Z$36,OO, with the 
median rent at Z$ 10,00. Payment of rent also entitled the workers to store 
their materials, articles and working equipment in the shop at night. This need 
for storage space in close proximity to their workplace was an obvious priority 
for these workers and posed a particular problem for a number of non-rentpaying 
informal sector operators who had to make arrangements with shop 
owners to store goods, carry their goods home with them, hide them in the area 
of the workplace or take them to the nearby hostels.
62 Veronica Brand 
Mode of Operation 
The ILO Report on employment in Kenya focused on the informal sector as a 
major part of its analysis and highlighted the identifying characteristics of 
informal activities. These were specified as ease of entry, reliance on 
indigenous resources, family ownership of enterprises, small-scale of operation, 
labour intensive and adopted technology, skills acquired outside the formal 
school system and unregulated and competitive markets. Findings of the 
Magaba survey support the small-scale nature of the operations as characterised 
above, but suggest a predominantly individualistic mode of operation and 
ownership. Of the respondents, 85,9% claimed that they worked alone as 
compared to only 14,1% of respondents who said they worked with one or 
more others. The maximum number of people working together was five. It 
appeared that a higher percentage of women than men worked alone, most of 
them engaged in selling fruit, vegetables and cooked food and none of them 
were engaged in any productive or repair activities. Seventeen of the 27 people 
who worked with others mentioned relatives, and in three cases they worked 
with one hired employee. The large majority of informal sector operators 
indicated that they worked alone because they wanted to, whereas only six said 
that they would prefer to work with others. 
The advantages of individual ownership and the one-man scale of operation 
were stressed by a large majority of the respondents, viz the avoidance of 
conflict in the working situation, greater financial gain and the freedom to make 
independent decisions without recourse to others. In response to a question 
regarding what they considered to be the advantages of working together with 
others, 54,4% of the self-employed individuals said that they saw no 
advantages at all, while 13 respondents expressed the view that mutual help 
was the main advantage especially where people were ill or handicapped. 
The type of joint or co-operative activity engaged in by informal sector 
workers at Magaba seemed to vary considerably from situation to situation. 
Generally, materials were purchased by a pair of individuals or by the group. 
Earnings were shared differently according to working arrangements. 
Knowledge of co-operative ventures was very limited as was indicated by the 
fact that only 43 respondents claimed to know of any other groups of people 
who worked together, 78,8% said that they did not know of any such cooperative 
enterprises. 
These findings reveal a limited knowledge and experience of co-operative 
working arrangements on the part of the self-employed individual operators 
interviewed at Magaba. This point will be returned to later in relation to the 
potential for co-operative formation among informal sector workers. It is 
significant to note that in the pilot study in a neighbouring area a number of 
questions designed to explore attitudes towards the formation of co-operatives
One Dollar Workplaces: A Study of Informal Sector Activities in Magaba, Harare 63 
were included. These were found to generate a certain amount of fear and 
hostility among the respondents, prompting the more indirect style of question 
in the actual survey. 
The mode of acquisition of raw materials and items for sale by informal 
sector workers is one way in which linkages between the formal and informal 
sectors of the economy are revealed. In the Magaba survey, the majority of 
respondents engaged in small-scale production said that they acquired the 
materials used from commercial firms. Informal channels of acquisition of 
materials were more marked among the group engaged in repair activities. 
Most of the shoe and watch repairers said that they purchased items from their 
customers, thus obtaining the materials necessary to mend other shoes and 
watches. Four respondents in this category said that they acquired some of 
their materials from the rubbish dump and through their own efforts at 
collection. 
Petty traders in the Magaba survey obtained most of their items from 
musika (Mbare) or directly from hawkers and vendors from the rural areas. 
Most of the herbalists interviewed said that they collected some of their herbs 
themselves from the bush. 
Despite the unstructured appearance of informal sector operations, as 
judged by the casual observer, closer examination reveals a higher level of 
informal structure and organisation. For the majority of respondents at 
Magaba, 'work' is a 6 or 7 day per week activity that begins and ends at a 
regular time. This finding is in contradiction to the irregularity of working 
hours suggested by Santos (1972) as being characteristic of lower-circuit 
economic activity. 
For most of the informal sector workers at Magaba, business is conducted 
on a small scale basis. Only 64 respondents (34,8%) said that they sometimes 
sold their goods in bulk. Most of these were petty producers, tyre sandal 
makers, stall holders at Pedzanhamo and herbalists. 
Generally the above findings appear to underline the importance of central 
location for informal sector operations in Harare. Petty production, repair and 
trade activities are carried out on a regular basis but accessibility to the 
potential customer is viewed as paramount. Hence the need for such operators 
to cluster in a geographic area that affords them proximity to sources of raw 
materials and guarantees them accessibility to shoppers, beerhall patrons and 
passersby who form the bulk of their clientele. 
Difficulties experienced in the work situation 
All but 10 of the informal workers interviewed admitted that they encountered 
difficulties in their work. These difficulties varied according to the nature of the 
workplace and revealed some basic differences between the three categories of
64 Veronica Brand 
workplace mentioned earlier. However, a number of fundamental problems 
underlay the comments made by the large majority of respondents. Difficulties 
encountered can be categorised into three main groups: a) environmental, b) 
economic, and c) social and personal. These will be considered in greater depth, 
first with respect to the unregistered operators, the storefront and fringe 
workers. 
a) Environmental problems. Sixty-nine of the unregistered respondents 
(46,6%) spoke of the problems experienced in their work because of 
weather conditions and 42 made specific reference to the lack of adequate 
shelter. Fringe workers in particular spoke of the hardships they 
experienced because of their vulnerability to rain, sun, wind and dust, and 
the inadequacy of operating in an open-air, unsheltered workplace. 
Closely linked to this was the problem of storage, noted particularly by 
those who make their living by selling cooked food, meat and fruit and 
vegetables. A further problem noted by a number of respondents was theft 
and the lack of security of tools, completed items and capital equipment. 
b) Economic problems. A second category of problems faced by the informal 
sector workers related to economic constraints experienced. Thirty three 
respondents mentioned the lack of customers as a problem they faced; the 
greater number of these being people working in the shoe repair trade. 
Lack of finance to acquire more materials or capital equipment was 
another economic constraint frequently mentioned. Other economic 
constraints noted by some of the storefront workers were the high rents 
charged for their workplaces. Delay in payments also posed a difficulty for 
a number of workers, especially those engaged in repair work. 
c) Social and personal problems. The most frequently mentioned social 
problem affecting informal sector workers interviewed was theft. Usually 
this was mentioned in relation to the lack of adequate provision for storage 
— particularly where tools and capital equipment were concerned. 
Inadequate transport; poor sanitation and water facilities as well as 
harassment by police of unlicensed operators were also identified as 
problems experienced in the workplace. On the personal side, poor health 
or physical disability constituted a problem affecting the work of a number 
of respondents. Several fringe workers linked the difficulties experienced 
in carrying out their work to lack of appropriate living accommodation. Only 
two respondents identified lack of skills or knowledge about their area of 
work as a difficulty — a rather surprising finding. 
The distinction between social, economic and environmental problems 
indentified by respondents is a somewhat artificial one, and must not be seen to 
blur the fact that for many informal sector workers life is a holistic entity. 
Any attempt to separate out component parts, or distinguish between a work
One Dollar Workplaces: A Study of Informal Sector Activities in Magaba, Harare 65 
situation and home responsibilities for the purposes of analysis runs the risk of 
misinterpretation. The linkages between the difficulties mentioned above is selfevident. 
Difficulties experienced at Pedzanhamo 
Difficulties mentioned by the Pedzanhamo group of informal sector operators 
show some marked differences when viewed in relation to responses given by 
the groups examined above. Three quarters of the Pedzanhamo stall holders 
mentioned theft as a serious problem. This was frequently related to the lack of 
adequate security provision in the form of lockers and the failure of the 
authorities to provide a security guard. Lack of satisfactory physical shelter, 
inadequate storage facilities and the vulnerability to the physical elements 
(rain in particular), also featured prominently in the Pedzanhamo group's list 
of difficulties. In mentioning these difficulties relating to shelter and security, a 
number of respondents expressed their grievances regarding the failure of the 
municipal authorities to whom they paid rent to remedy the situation. 
Problems relating to the expensiveness of materials, payment of retail prices, 
lack of customers and difficulties in transport echoed the difficulties mentioned 
by the other groups of informal sector workers. 
Resolution of difficulties 
As has been seen above, the majority of respondents in the Magaba survey 
highlighted the environment problems stemming from inadequate storage and 
security provision. Nearly 50% of the fringe and storefront workers indicated 
that these problems could be resolved by the provision of sheltered places of 
work and secure worksheds. Many expressed the view that they would be 
prepared to pay rent for shelters. Most indicated the responsibility of 'the 
authorities' or government to provide these facilities and to ensure that there 
were good storage and security arrangements. 
With regard to the economic difficulties experienced, a number of solutions 
were envisaged. Bulk purchase of inputs at wholesale prices was mentioned by a 
number of respondents. It was suggested that a license or 'permission' be 
obtained from government to entitle informal sector workers to purchase goods 
at wholesale prices. The need to obtain a loan in order to do this was 
mentioned by several respondents. The need to work cooperatively with others 
to overcome these economic difficulties was expressed by several individuals. 
In contrast to this were those who saw the resolution of their difficulties in the 
need for continued effort on their own part. For a minority of respondents, 
most of whom were fringe workers, the only resolution to the difficulties 
encountered was seen to lie in opting out of the situation, eg three aliens spoke
66 Veronica Brand 
of their desire to be repatriated. Several respondents said that they saw the 
solution to their difficulites in looking for alternative employment and a better 
workplace. Some saw no solution at all. 
Some notable differences were apparent between the responses given by the 
fringe and storefront workers and the Pedzanhamo stall holders in relation to 
ways of dealing with the difficulties encountered. The latter offered more 
clearly articulated suggestions and were more unified in their prescription of 
solutions. The main suggestions made related to the security situation at 
Pedzanhamo. A strong and concerted plea was expressed for the authorities to 
take action on employing a security guard at night, adding lockers, improving 
the sheds and building walls. 
Income and personal welfare 
TABLE I 
ANALYSIS OF INFORMAL SECTOR OPERATORS BY 
CATEGORY OF WORKER AND SELECTED CHARACTERISTICS (%) 
Residential arrangements 
in hostels 
in high density housing areas 
no fixed abode 
Residential status 
house owners 
tenants 
lodgers 
squatters 
Financial security 
having rights to land in rural areas in Zimbabwe 
earning more than minimum industrial wage 
with ability to save 
with other sources of income 
wealth rating > $2 000 
Job preference 
preferring to remain in present job 
preferring job in industry 
The heterogeneity of informal sector workers at Magaba is indicated by the 
diversity evident in their place and status of residence. The majority of these 
workers travel to their workplace each day from some distance. Half of the 
Stall- 
Fringe 
workers 
Storefront 
workers 
holders 
Pedzanhamo 
Total 
35,6 
52,1 
10,4 
16,1 
80,7
- 
2,8 
97,2
- 
25,8 
65,9 
6,6 
13,7 
25,6 
26,5 
12,8 
7,7 
19,4 
51,6
- 
38,9 
19,4 
27,8
- 
17,9 
23,4 
31,0 
8,2 
42,7 
11,7 
30,8 
17,9 
16,2 
45,2 
61,0 
67,7 
19,4 
35,5 
36,1 
22,2 
75,0 
38,9 
47,2 
41,8 
21,7 
45,7 
22,3 
26,5 
30,8 48,4 55,5 38,6 
54,7 35,5 36,1 47,8 
(N = 117)(N = 31) (N = 36)(N = 184)
One Dollar Workplaces: A Study of Informal Sector Activities in Magaba, Harare 67 
respondents travel distances in excess of 20km each day, many of them 
carrying their wares with them. 
As can be seen from Table I, some interesting differences are apparent when 
the three groups of informal sector operators are compared. Thrity-five percent 
of the fringe workers are resident in the hostels as compared to only 2,8% of the 
Pedzanhamo stall-holders and 16,1% of the storefront workers. This high 
concentration of fringe workers in hostel accommodation contrasts strongly 
with the prevalence of residents in housing units in Mbare which charaterised 
Pedzanhamo traders (38,8%). More then one third of the Pedzanhamo stallholders 
and storefront workers are resident in Chitungwiza. Another 
significant difference between the fringe workers and the other two groups is 
shown by the fact that all 12 respondents who said they had no fixed place of 
abode and lived in shanties in the surrounding area were fringe workers, and 
represented 10,4% of this category. It should also be noted that a number of 
the respondents who said that they were currently living in the hostels nearby 
said that they had been squatting prior to their being moved to the hostels. 
Another interesting difference between the registered and non-registered 
operators is evidenced in the higher percentage of owners represented among 
the Pedzanhamo stall holders than in the other two groups. Fifteen of the fringe 
workers identified themselves as 'squatters' whereas none of the stall 
holders or storefront workers fell into this category. A surprising finding is the 
fact that half of the storefront workers claimed to be lodgers, a significantly 
higher proportion than in the other two categories of workers. 
Wealth and security 
Rights to land in the rural areas indicate a degree of land-based security that is 
commensurate with traditional rural community life. Less than half of the 
respondents claimed that they presently had rights to a plot of land in the 
communal areas. The percentage of unregistered workers (43,2%) was 
somewhat higher than that of Pedzanhamo stall holders (36,1%), suggesting 
possible differences in terms of rural versus urban based security. Forty-five 
percent of the respondents interviewed said that they presently had a house in 
the rural areas or that they were in the process of building one. 
Ownership of livestock was limited, with only one third of the total group of 
respondents claiming possession of any at all. All these respondents were 
people who had built or were in the process of building a rural home. The type 
of livestock varied from poultry and rabbits to pigs, goats and cattle. A number 
of respondents indicated that the livestock they had possessed had been lost in 
the chimurenga war. 
Length of residence in town seemed to bear little relationship to the amount 
of wealth that was accumulated in rural areas. Furthermore, almost half of the
68 Veronica Brand 
respondents who owned houses in town claimed to also have some rural-based 
wealth, in the form of rural home and livestock. This supports the contention 
that a substantial proportion of urban residents continue to maintain a stake in 
the rural areas and rely on the security that this affords, even while developing 
an urban-based security (Stopforth, 1971). 
Respondents were also asked whether they owned any or all of the 
following: a motor vehicle, a scotch cart, a bicycle, a sewing machine or other 
capital equipment. An attempt was then made to assign an approximate 
monetary value to the wealth possessed by the informal sector operators, using 
a rough conversion scale. Wealth was thus taken as comprising possession of a 
house (rural and urban area), livestock, vehicle (motor car, scotch cart, or 
bicycle) and means of production (eg sewing machine). Respondents were 
then classified into three categories according to their wealth rating: low 
(where the total estimated monetary value was less than Z$l 000), medium 
(approximate monetary value of between Z$l 000 and Z$2 000) and high 
(where the value exceeded Z$2 000). A significant relationship was found to 
exist between wealth rating and category of worker indicated by tenure of 
workplace. Nearly half of the Pedzanhamo stall-holders (47,2%) (with greater 
security of tenure of workplace) were in the high wealth category, as compared 
to only 16,2% of the fringe workers (who have no security of tenure of 
workplace). A total of 72 respondents, 27 of them aliens, owned none of the 
items investigated, and hence had a wealth rating of 0. Aliens were over 
represented in this group, such that 64,3% of the aliens interviewed had no 
identifiable wealth as compared to only 31,7% of the Zimbabweans. More 
than three quarters of those who had no measurable wealth were fringe 
workers. 
Income 
Details of earnings of informal sector workers are notoriously difficult to 
obtain and can be termed as little more than estimates. As Davies (1974) 
pointed out in his Hartley study, lack of written records of incomes and 
expenditure, the need experienced by many marginal workers to consume 
daily earnings immediately, and the inevitable fluctuations in takings according 
to season make it impossible to do more than form some type of 'order of 
magnitude' estimate of earnings. Estimates are also likely to be influenced by 
the most recent levels of takings — something which could introduce a bias in 
either direction. Since the Magaba study was carried out in the December/ 
January period, it could be argued that recent levels of earnings are likely to 
have been higher because of the holiday season, year end bonuses, etc. 
However, it could also be postulated that increasing demands placed on the 
prospective buyers for expenditure on other items during the planting and 
festive season are likely to have lowered the level of takings.
One Dollar Workplaces: A Study of Informal Sector Activities in Magaba, Harare 69 
A further problem associated with the use of income data gathered in the 
Magaba study relates to the failure of most respondents to distinguish between 
net profits and total takings. This results from the fact that only 19% of the 
respondents claimed to keep any records of income and expenditures. Lack of 
clarity with regard to the level of earnings received is evidenced by the fact that 
close to 10% of the respondents (most of them women vegetable vendors) were 
not able to offer even an estimate. The range of weekly earnings is very wide; 
from a minimum of Z$O,65 mentioned by an alien man of no fixed abode who 
depends on the sale of tobacco for his livelihood to a weekly turnover of 
Z$35O,OO claimed by the owner of a 'hot-dog' stand. 
The adequacy of these incomes can be assessed roughly by comparing them 
with the minimum wage for industrial workers as specified in January 1982 
(Z$105,00 per month). On the basis of a AVi week month, this can be put at 
Z$23,30 per week. Slightly more than one fifth of the respondents claimed to 
earn more than this figure. Compared to domestic and agricultural work, 
however, the earnings appear in a more favourable light as 68,3% claim to earn 
in excess of Z$ 10,00 while the equivalent weekly wage of domestic and 
agricultural workers was Z$ 11,10. 
The level of earnings of the Magaba informal sector operators was found to 
vary significantly according to a number of background variables. As has 
already been indicated, there is an evident stratification of informal sector 
workers that appears to relate to their tenure of workplace. This differentiation 
between fringe workers, Pedzanhamo stall-holders and storefront workers is 
born out in terms of weekly earnings. The average earnings of storefront 
workers as indicated by the median income is significantly higher than that of 
the stall-holders and the unregistered fringe workers. Sixty-one percent of the 
storefront workers earn in excess of the minimum wage in industry as 
compared to only 11,7% of the fringe workers. Significant differences in levels 
of earnings are also evident when the respondents are classified according to 
sex. This is particularly evident in the case of the registered Pedzanhamo stall 
holders, where the median incomes of the men (most of them are herbalists) is 
more than three times that of the women. Aliens are over-represented in the 
lower income categories with 45% of them earning less than Z$ 10,00 a week 
and only 9,5% earning more than the minimum industrial wage. An 
association is also suggested between the type of economic activity engaged in 
and the average level of earnings derived from it. People engaged in small scale 
productive activities generally reported higher weekly earnings then those in 
the repair and petty trading categories, although considerable variation was 
noted between different sub-groupings.
70 Veronica Brand 
Savings 
Nearly half of the respondents reported that they were able to save some of 
their weekly earnings. Once again, a marked difference was evident between 
the three groups identified. Seventy-five percent of the Pedzanhamo stall 
holders claimed to save as compared to only 30,1% of the fringe workers. 
Security of tenure of workplace was found to be associated with higher levels of 
earnings and a greater propensity to save. The majority of stall holders at 
Pedzanhamo who indicated that they were able to save some of their weekly 
earnings belonged to a thrift and savings club that operated among the women 
traders at the market. There was a membership of 14, and each member 
contributed Z$2,00 daily to enable one member of the club to have sufficient 
funds to purchase her wares or attend to other financial commitments once 
every two weeks. There was little evidence of involvement in savings clubs 
among the storefront or fringe workers. 
Other sources of income 
Only a minority of respondents indicated that they had sources of income other 
than their main income producing activity. For the most part, those with 
additional sources of income were the married respondents, who had a spouse 
in employment—either in the formal sector (usually the husband of a female 
respondent) or engaged in informal activities (generally the wife of a male 
respondent). Pedzanhamo stall-holders had a significantly higher proportion 
of respondents who claim other sources of income than the fringe and 
storefront workers. This may partly be explained by the fact that the majority 
of Pedzanhamo group are married women. Only 11 respondents mentioned 
receiving any income from agricultural activities, most of these referring to 
production in rural homesteads. The amount of supplementary income 
received ranged from Z$2,00 per month to Z$ 120,00. A conclusion drawn 
from these findings suggests that supplementary sources of income are 
available to only a minority of Magaba informal workers. For most of them, 
the informal sector activity in which they are engaged is their only source of 
livelihood. 
Work aspirations 
The extent to which informal sector operators are committed to their present 
undertaking is indicated by their responses to a speculative question: if given 
the opportunity, would they choose to get a job in industry, go home to the rural 
areas, remain in their present activity, or some other unspecified alternative? 
The responses given varied significantly among the three workplace tenure 
groups. Of the Pedzanhamo stall-holders 55,5% stated their preference for 
remaining in their present activity as compared to 48,4% of the storefront 
workers and 30,8% of the fringe workers. Conversely, 54,7% of the fringe
One Dollar Workplaces: A Study of Informal Sector Activities in Magaba, Harare 71 
workers said they would prefer a job in industry to their present activity as 
compared to little more than one third of the Pedzanhamo and storefront 
respondents. This would appear to suggest that the greater security afforded 
the latter through their greater security of workplace tenure, coupled with the 
higher income levels that characterise these groups, served to offset the disadvantages 
of informal sector activity. Preference to remain in their present 
activity was frequently linked with the desire to one day start up one's own 
business—this was usually envisioned as being in the present area of activity 
and included a grocery shop, shoe factory, restaurant, etc. These ambitions 
were most clearly articulated by the storefront production workers and 
repairers. By and large the informal sector operators interviewed in Magaba 
expressed a commitment to urban living. Only 15 respondents (8,2% of those 
interviewed) said that given the choice they would opt to return 'home'. 
Conclusion 
In the light of the data obtained from the survey of informal sector operators in 
Magaba a number of tentative conclusions can be drawn. 
— Informal sector operations in Magaba are distinctly heterogenous. They 
display significant differences which necessitate differentiated treatment of 
various sub-groups of the self-employed. As Sinclair has noted, one of the 
difficulties encountered in using the informal sector concept concerns the 
artificial homogeneity it apparently assigns to all the enterprises 'lumped' 
within it. Recognition of the differential nature and status of informal sector 
operations in Magaba is essential if policies adopted towards the sector are to 
be informed and enlightened, and if the supportive measures indicated by 
government are to have optimum effect. 
— Differences among the self-employed at Magaba were found in a number of 
pertinent background variables including age, nationality, level of education, 
duration of urban residence and experience within the formal sector. The mode 
of operation of the various enterprises as well as the level of earnings and 
general welfare of the operator were also found to differ considerably. Thus, 
the 'informal sector' in Magaba must be viewed as a "heterogeneous 
multidimensional phenomenon" (Sinclair, 1978). 
— A significant number of informal sector operators at Magaba earn a 
reasonable livelihood from their work, are committed to their enterprise, and 
have every intention of continuing and expanding it, even if other employment 
options were open to them. This tends to concur with the findings of a number 
of recent empirical studies reported by Sinclair, which underline the fact that 
the informal sector is not solely constituted by those who would prefer to work 
elsewhere. Personal independence, higher income and prestige appear to be
72 Veronica Brand 
more attainable in a situation of self-employment than in the highly competitive 
formal sector economic structures. 
— The group mentioned above contrasted strongly with certain groups of 
disadvantaged individuals for whom the informal sector was an 'employer of 
last resort' and a means of subsistence in a hostile environment. These include 
a number of people in the Magaba study who, for the most part, were classified 
as 'fringe workers'. Among these could be mentioned a) elderly alien men, 
most of whom lacked education, skills, wealth and viable source of livelihood; 
b) individuals whose poor health, physical handicap or disability made it 
impossible for them to acquire alternate employment or to maintain themselves 
adequately in their present situation; c) widows who lacked alternative 
financial support for their dependents and whose incomes were inadequate to 
provide for their dependents. It was noted that division of labour by sex 
appeared to be deeply embedded in informal sector operations at Magaba. All 
the women interviewed were engaged in petty trading activities and the large 
majority earned inadequate incomes that fell far below the Poverty Datum 
Line. These groups of disadvantaged are in need of assistance from the 
Department of Social Services, and adequate referral processes need to be 
established. 
— The stratification that was evident within the 'informal sector' at Magaba 
appeared to be largely related to tenure of workplace and type of economic 
activity. Productive workers, watch repairers and herbalists (most of whom 
owned some 'capital' and had greater security of workplace) constituted a 
singularly different class from certain categories of fringe workers. Security of 
tenure of workplace appeared to be associated with higher levels of income and 
wealth and a higher degree of commitment to continuing and expanding the 
present economy activity. Hence the classification system developed appeared 
to have been useful in disaggregating the informal sector operations in 
Magaba. 
— Informal sector workers at Magaba are not urban newcomers and any 
provision for their future must take due congnisance of this fact. 40% of the 
respondents claimed to have lived in Harare for more than 20 years. Although 
a small minority of fringe workers looked forward to repatriation to their 
mother country or to returning to rural homes, the large majority of workers are 
urbanised, and provision for their welfare is a matter for urban authorities. 
— Location plays a central importance in informal sector activities in Magaba. 
This is attested to by the long distances travelled each day by close to half of 
the self-employed. The long established nature of some of the operations and 
the fact that many people claimed to have learnt skills in the area, points to the 
need to stablise the workplace in Magaba. Provision of various types of 
assistance by the municipal authorities could be significant, particular^ in 
relation to the enviromental difficulties identified by the respondents.
One Dollar Workplaces: A Study of Informal Sector Activities in Magaba, Harare 73 
— Although the large majority of informal sector workers at Magaba had been 
engaged in their present activity for some time, very few had entered it 
immediately upon arrival from the rural areas. 86,5% of the men and 54,9% of 
the women had had employment experience in the formal sector. Hence it 
appears that the informal sector in Magaba serves as a 'safety net' for those 
who are squeezed out of formal employment in the money economy and who 
lack alternative sources of income and livelihood. Little evidence was found of 
transfer of skills learned in formal employment to informal sector activities, 
which is partly due to the predominantly unskilled nature of the employment 
experience. Urban-based associations provide a significant support system to 
the informal sector workers, in addition to kin-based networks. This is seen 
particularly in the form of sources of knowledge and skill 'training', acquisition 
of raw materials and arrangements relating to storage provision for goods. 
— The level of technology utilised at Magaba is simple, and, with the 
exception of certain categories of production workers, the term 'one dollar 
workplace' is an apt description. Partly because of this, the informal sector in 
Magaba shows a marked tendency towards the proliferation and maintenance 
of the 'one-man' scale of operation. 
— There is minimal evidence of co-operative formation among informal sector 
workers at Magaba. Even where enterprises are run jointly by two or more 
partners, the mode of operation is primarily individualistic. For the lower 
income operators, it could be asserted that being close to the margin of survival 
appeared to increase the tendency to 'risk minimisation' by retaining the 
existing form of mode of operation. The majority of informal sector operators 
at Magaba appeared to have a very limited knowledge of co-operatives and 
indicated little understanding of the potential advantages to be derived from 
co-operative endeavours. It would seem that a considerable amount of ground 
work would be necessary prior to assisting in co-operative formation. 
— The degree of organisation among self-employed operators appeared to be 
higher among Pedzanhamo stall-holders who all paid a similar fee to the 
municipality than among the fringe and storefront workers who lacked any 
common bond. This was reflected in the number of actions taken to support 
group interests (eg hiring of a security guard and formation of a savings club) 
and in the unequivocal statement of complaints and difficulties that they put 
forward. The problems and difficulties raised by informal sector operators 
could be more easily resolved if concerted efforts were made by people 
engaged in similar activities. This seems unlikely to occur unless provision is 
made for a community worker to assist in this regard. 
The situation of informal sector operators at Magaba is symptomatic of 
deeper problems within the total socio-economic system in Zimbabwe. 
Unemployment and under-employment—historically created by actions and
74 Veronica Brand 
omissions of the past—cannot be separated from insecurity and poverty. As 
Bromley and Gerry (1979) have pointed out, 
the poor are part of the total system but they have no control over the 
system and little possibility of changing it.. In most cases, the poor are too 
busy making a living to think of organisation and mobilisation, and their 
dependent vertical linkages within the socio-economic system are much 
more significant than their horizontal linkages and potential solidarity. 
It would appear that community work could play a key role in helping to 
develop those 'horizontal linkages' at Magaba, but that in itself is not 
sufficient. Policies must be directed to resolving the root problems of poverty 
and insecurity which perpetuate 'one-dollar workplaces' in an urban world of 
plenty. 
Footnotes 
1. Subsequent to the completion of this report a study of the informal sector was undertaken by 
the ILO SATEP for the Ministry of Labour Manpower Planning and Social Welfare. 
2. The median income was used in preference to the mean because of the few individuals that 
earned excessively high incomes and thus made the mean a biased indicator of central 
tendency. 
REFERENCES 
BROMLEY R and GERRY C (eds) 1979 Casual Work and Poverty in Third World 
Cities, John Wiley and Sons, Chichester 
DAVIES R 1978 The Informal Sector A Solution to Unemployment, 
Mambo Press. Gweru 
DAVIES R 1974 The Informal Sector in Rhodesia: How 
Important? The Rhodesia Science News, vol 8 
no 7 July. 
ILO 1972 Employment, Incomes and Equality, Geneva 
McGEE T G 1977 "The Resistance of the Proto-Proletariat: 
Occupational Structures and Planning of the 
Future of Third World Cities" 257-270 in 
Third World urbanisation, edbyAbu-Lughod 
J. Methuen. New York 
PATELDH AND ADAMS RJ 1981 Chirambahuyo, Mambo Press, Gweru 
RIDDELLR 1981 Report of the Commission of Inquiry into 
Incomes, Prices and Conditions of Service, 
SINCLAIR S 1978 Urbanisation and The Labour Markets in 
Government Printer, Harare. 
Developing Countries, ELBS, London 
STOPFORTHP 1971 Survey of Highfield African Township, 
University of Rhodesia, Harare