Survival Strategies Used by the Informal Sector Businesses in Zimbabwe during the COVID-19 Pandemic

Abstract

This study investigated the survival strategies adopted by informal traders in Harare in dealing with the effects of Covid-19. A cross-sectional survey was used to gather data from a sample of 144 informal traders drawn through cluster sampling from Magaba, Mupedzanhamo, Glenview 8, Mbare Musika, Seke Road Flyover, Epworth, Mbudzi Roundabout, Coca Cola-Adbernie, Jambanja Market Chitungwiza trading areas. Findings from the exploratory factor analysis revealed that informal sector players adopted strategies such as shift to on-demand and fast moving products, selling within proximity to place of residence, laying off employees, use of mobile money for business transactions, defying lockdown protocols, selling at usual points, use of alternative sources of power for production, shifting all goods back home to avoid rentals, limiting other household expenditure, dipping into savings and profits to fund expenses, borrowing from friends and family, door to door delivery services, disposal of assets, online vending (WhatsApp, Facebook), defaulting repaying all outstanding loan balances, backyard factories and shops and defaulting repaying all rates to city councils. The study recommended that informal businesses that have been severely affected during the COVID-19 crisis can take alternative approaches such as partnership strategies. Through collaboration with other informal businesses, they can recover from financial distress and other effects caused by Covid-19. It was also revealed in this study that the government and other private organisations should start education on running successful businesses during economic shocks and pandemics such as Covid-19 and other outbreaks that are unforeseen.