Navigating formalization of street vending: the case of street vendors in Kigali City, Rwanda

Background: In most developing nations, streets and alleyways act as places where vendors conduct their operations selling different items and services to people. However, issues such as creating traffic jams, not contributing to revenue collection, pollution of the environment, issues with hygiene, and sale of substandard products have encouraged governments to pursue banning street vending and in turn adopt trade in designated municipal markets. Rwanda is one country that has adopted this initiative through its efforts to formalize street vending in the capital city, Kigali. Such a move has significant impacts on the livelihood of the street vendors and in seeking to contribute to this discourse the current study explores the challenges street vendors encounter in Kigali because of the trade’s formalization, evaluates the challenges faced by the vendors in navigating this formalization process, the coping strategies they adopt, and the role of economic and social networks in this context. Methods: The study employed a qualitative research approach that entails focus group discussions with 30 street vendors in Kigali as well as semi-structured interviews with 5 key informants who are municipality officials. Thematic analysis was used to interpret the findings from the data collected. Findings/Results: The findings highlighted how most vendors are against the formalization process due to factors like the lack of participation in policy formulation and a lack of proper understanding of the intended impacts of the initiative. Nonetheless, vendors who undertook the formalization process reaped benefits such as job security that comes from having a designated place to operate, working in better conditions without exposure to weather elements, and enhanced income. The main challenges encountered by vendors operating in the mini markets included higher operational costs stemming from the formalization process, limited spaces in the designated markets, challenges with the bureaucracy of the formalization process, and loss of opportune selling locations. Challenges encountered by vendors still on the streets included exposure to elements, harassment from municipality officials, and lack of job security. The main coping strategies for vendors in the mini-markets included working with cooperative societies to help with the formalization process and working with municipality officials to prevent vendors from operating near the designated markets. Those still operating in the streets are willing to endure harassment and arrests while others bribe officials to be allowed to continue their operations. The findings also highlighted the important role of social and economic networks in helping vendors secure places in the designated markets. Conclusions: From the findings and based on the perspective of the institutional theory and dual economy theory, the paper recommends that the government and other relevant stakeholders should offer financial support and access to credit; simplify the complicated bureaucratic process, enhance infrastructure and accessibility of the designated markets; and conduct civic education on the importance of formalization of street vending in Kigali.