Introduction
Tour Itinerary
Destinations
Kitwe
Chingola
Mufulira
Urbanisation
Shanty Town(1)
Shanty Town(2)
Informal Sector
Popn Growth
Inflation
Issues
Theories
Worksheets
Resources

Home Field Trips Copper Tour Mufulira

Mufulira

The Informal Sector

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It is estimated that over 60% of the population of Mufulira are unemployed. However, as the government has no resources for welfare provision to unemployed most people are actively involved in the informal sector. These are activities that are not registered with the authorities. In Mufulira, as with most other major towns, the main informal activity is street vending. Along roads, in the shanty towns and even in the commercial centres people are selling all types of merchandise. They may have a makeshift stall made out of plastic sheeting and a table or they may simply sell their wares on the ground. The range of products being sold is immense. Within a few metres you see people selling chickens, used plastic containers, second hand clothes and shoes, fruit and vegetables, sweets, wire wool and charcoal. There are also people performing many different services including car cleaning, welding, shoe cleaning, bicycle repair, car minding and also at night prostitution. Within the slums and shanty towns there are areas that specialise in markets for particular goods and services.

Although their output is unrecorded in official national income figures they are a most important part of the urban economy. National income measures would underestimate the true value of output. President Chiluba has gone on record supporting the existence of the street vendors. The various activities are often labour intensive, and in an economy where unemployment and underemployment is prevalent, provide much-needed sources of work and income. This takes some of the pressure off the government from dealing with the intense poverty of the slums.

Informal Sector

However, there are external costs associated with the growth of these informal markets. The authorities in Mufulira have been concerned that the leftover remains of unsold meat, fish and vegetable produce present a health risk and are an eyesore to visitors to the city. In response they are attempting to provide custom built markets to accommodate the street vendors. The street vendors, perhaps unsurprisingly, are somewhat unenthusiastic. Their entrepreneurial spirit guides them to the locations that maximise their revenue.

Next issue - The Causes and Impact of Population Growth >>

Related Glossary Items:
Informal Sector
Underemployment
External Costs
Relative Poverty
Absolute Poverty

Related Issues:
The Vicious Cycle of Poverty
The Structural Adjustment Policies of the IMF
Rural Urban Migration
Unemployment and Underemployment

Related Theories:
Alternative Indicators of Poverty
Commodity Agreements
Composite Indicators of Poverty and Living Standards
Measuring Poverty