INFORMAL SECTOR IN MASVINGO CITY: CHALLENGES AND OPPORTUNITIES FOR SUSTAINABLE DEVELOPMENT

Zimbabwe, like other developing countries, is experiencing a proliferation of the informal sector. The development of the sector is mainly concentrated in the cities. Masvingo is a city in the South-eastern part of Zimbabwe. It is in this city that there are growing activities of informal business. The informal sector has significant impacts on the sustainable development of the city. The goal of this study is to examine the benefits and the challenges of the informal sector in Masvingo city. Primary data was collected using a questionnaire and two focus group discussions as research instruments. A total of 160 questionnaires and two group discussions were administered to solicit data from the participants in the informal sector in Masvingo city. It emerged from the study that the informal sector in the City has positive impacts such as income generation, acquisition of business experience, self-reliance, contribution to city revenue, supply of goods, contribution of the sector to national development and flexibility in the informal sector businesses. Apart from the benefits, the sector also has challenges such as lack of funding, low returns, harassment by local authorities, import restrictions, environmental pollution, management problems, shortage of space and arduous registration requirements. Various recommendations were made to mitigate the negative impacts of the informal sector in Masvingo city