Towards incorporating the urban informal economic sector in city development by local authorities : the case of Chisokone market in Kitwe, Zambia

The urban informal sector in the Zambian cities, like other cities, has been growing rapidly. The emergence and growth of the informal sector in Zambia is related to factors of rapid urbanisation, non-improvement of formal employment levels and reduction of jobs in the formal sector through retrenchments following adoption of the Structural Adjustment Programme. An estimation of 81% of the urban labour force in Zambia is engaged in the informal sector (Living Conditions Report, 2004). The sector's contribution towards GDP by 2000 was 48.9% (Schneider, 2002). The informal sector in Zambia is often accompanied by problems of poverty, insecurity of land tenure, lack of institutional support. Employment in the urban informal sector in Zambia is more of a need rather than a choice considering the imbalance of demand and supply of labour. The excess labour moves into this sector as a result of push factors with the main objective of surviving. The informal operators' ability to generate income for survival is to a greater degree dependent on the extent to which they are incorporated in the fabric of urban development. In the Zambian cities, including Kitwe, there exists a continued hostile environment between the formal and informal city. Considering that the informal sector is no longer regarded as a temporal phenomenon, this interface critically demands for improved urban governance with a view of incorporating informality in city development. In this context, this study aims to assess the interaction of actors in dealing with incorporation of informality in Kitwe. The study's objective is to understand the prevailing interaction between the local government, market association and informal traders of Chisokone market in Kitwe and to recommend what would be the appropriate approaches of collaboration among actors and of incorporating informality. An explorative study was used and in-depth interviews as well as focus group discussion were adopted as research instruments. The results of the study indicated that the status of weak governance system that prevails on the interactive alliance of actors on the dimensions of informality has laid grounds for hostile encounters between the formal and informal city. Exclusive strategic decision making and policy formulation were identified as major shortcomings of city governance. This is accompanied by restrictive regulations that ignore principles of equity and the importance of interactive relationship towards socially constructed city development on the interface of informality. Findings indicated that in the process of incorporating informality, there are incentives that tend to drive or restrain change that may occur. The major restraining forces that create continued status quo at Chisokone market include; conflicting interests, lack of political will, mistrust and diverse objectivity among actors, corruption and bureaucracy. Amidst these restraining forces, the local government's realisation on the need to incorporate informal activities in city development provides an appropriate starting point. The analysis revealed that incorporation of informality is a governance issue. This calls for policy interventions by the government aimed at improving governance systems and structures towards attaining a level of incorporating informal activities in the urban life. Towards Incorporating the Urban Economic Informal Sector in City Development by Local Authorities: The Case of Chisokone Market in Kitwe Zambia ii The study recommends that the decision to legalise the market should be based on sound principles of governance while considering formality trade-offs as a focal point in the whole process. The local government should encourage the use of public debates for consensus decision making with concerned stakeholders. A sustaining and agreed upon governance structure ought to be formulated by actors from which their roles and responsibilities will be clearly stipulated. Government should enhance inclusive policy formulation. The component of ambiguous representation of the traders' association in the management of markets ought to be revisited for smooth implementation of governance systems in addressing issues of informality at Chisokone market. At institutional level, inclusive planning and implementation processes should be adopted by the local government as effective measures in the processes of licensing, taxation, market upgrading and mobilisation of Business Development Services and credit facilities. Keywords: Informal Economy, Incorporation, Actors, Interaction, Governance