How modern markets contribute to petty trading formalisation

TANZANIA: THE government under President Samia Suluhu Hassan has made huge investment in the construction of modern markets in various parts of the country, the crucial turning point for formalising petty trading businesses.

The availability of affordable and appropriate working premises for petty traders is the virtual aspects on establishing and running productive businesses. The modern market facilities have stimulated petty trading business and by being recognised officially they are now participating in building inclusive economic growth.

The huge investment made in the infrastructures for petty traders’ development has helped them to conduct their businesses in an orderly manner.

For President Samia, the investment in modern market facilities has played key role in efforts to make the small-scale businesses graduate to middle and large scale businesses.

According to her, the government’s goal is to ensure that petty traders graduate from small-scale business level to either medium or higher level so that they can start paying taxes. She expressed the government commitment of continuing to address all of their challenges, including those who were unable to find areas to work.

The government has continued to choose some open areas to build markets for petty traders so as to bring affordable services closer to the people.

The government recognises the value and contribution of small-scale businesses and thus it has been taking several measures to support the sub-sector to grow.

“Promoting and supporting self-employment is important if the country is to address the employment crisis. We know that a big group of youth have been employed in this sector of small businesses; we assure you that the government will continue implementing various strategies to make the sub-sector flourish,” Dr Samia said when she met Petty Traders Association in Dar es Salaam recently.

The government came up with the plan to remove petty traders along the roads to make things go well and make Dar es Salaam city look clean and smart, she affirmed, specifying that the aim was to see that road pavements are not used for trading purposes.

“We want things to be conducted well and in designated areas,” she stated.

“The beauty of Dar es Salaam city can now be spotted and seen very well, the beautiful roads, flyovers and bridges are now seen clearly and attractively,” she said.

The exercise will have left hurts and challenges to the petty traders but its advantages are countless as it will help the petty traders to grow and later become formal sector traders by conducting their activities in designated areas and newly designed facilities, the president acknowledged.

The petty trading and other entrepreneurial business have been a mechanism of inclusion and equity for economic empowerment and deepening of economic and business services especially in developing countries. Before the construction of modern markets facilities, petty traders were conducting their business in informal areas and were forced to pay rent for the space that was often in front of one’s shop.

Areas of inspiration in the Third Five Years Development Plan (FYDPIII-2021/22-2025/26) included the increasing of the country’s capacity for production, building a competitive economy that will stimulate the country’s participation in trade and investment and stimulate human development.

The markets facilities have become panacea to various challenges facing petty traders including conducting business in informal areas. Further, the modern markets in various parts of the country which have assured customers of the availability of various commodities almost under one roof.

Some big traders have been evading required tax dues by hiring a lot of hawkers to sell their products without providing receipts.

Hawkers must stop being used by big traders to sell their products as this affects revenue collection and growth, she declared, urging the public to continue paying taxes and levies so as to support development initiatives.

Petty traders often sell goods and services that are in high demand or appeals to the local taste to avoid freezing their small capital and with a good knowledge of the market, they managed to transform into a mobile consumer shopping basket.