The streets of Zimbabwe’s cities are undergoing a quiet transformation as night falls. Sidewalks, office verandas, and parking lots morph into bustling open-air markets, offering everything from groceries and clothing to electronics and fresh meat.
These informal bazaars have become a lifeline for many Zimbabweans grappling with rising prices in formal retail stores.
For shoppers like 30-year-old Batsirai Pabwe, these markets are a revelation. “It’s my first time shopping here. My friend told me it’s much cheaper than supermarkets,” Pabwe said, visibly pleased as he stuffed his bag with items worth $20. “I decided to give it a try, and I really enjoyed it.”
In contrast, Pabwe explained, $20 in a supermarket only managed to buy “meat and spices,” a stark reflection of the price disparities between traditional stores and the unregulated night markets.
Zimbabwe introduced its newest currency, the Zimbabwe Gold (ZiG), in April with much fanfare, branding it as a gold-backed solution to years of economic instability.
However, seven months later, the ZiG seems to be floundering. The gap between official exchange rates and the thriving black market continues to widen, as businesses and individuals turn to the U.S. dollar for its stability.
The ZiG is Zimbabwe’s sixth attempt at a new currency since 2009, when hyperinflation reached an astonishing 5 billion percent, effectively collapsing the Zimbabwean dollar. Despite grand promises and catchy promotional campaigns, the ZiG is facing the same fate as its predecessors.
Formal retailers, compelled by authorities to accept the ZiG at official exchange rates, are struggling to remain competitive. Rising operational costs, taxes, and fluctuating exchange rates have left traditional stores with little choice but to hike prices.
The Retailers Association of Zimbabwe has sounded the alarm, describing the current situation as “clearly untenable.” In October, South African grocery giant Pick n Pay, which operates over 70 stores in Zimbabwe, declared its local investments as having a “book value of zero” due to deteriorating economic conditions.
Informal Markets Flourish
Economics professor Gift Mugano explained why informal markets are thriving while formal retailers falter. “In every transaction, businesses in the formal setup are making an exchange rate loss that cannot be compensated.
The major issue here is a currency crisis,” he said, adding that informal traders face fewer overhead costs.
“Everything is against their survival,” Mugano continued. “The informal sector works at night. If there’s no electricity, they use their phones—they don’t care. They are there for survival.”
The contrast is evident in Harare’s Central Business District. While formal supermarkets remain eerily quiet, outside, the night markets buzz with activity.
Street vendors like 51-year-old Oswald Gari thrive under the cover of darkness, evading authorities to sustain their families. “Business is booming,” Gari said, revealing that his night trade supports six children and four nephews.
Zimbabwe’s economic crisis has forced over 80% of its employable population into the informal sector, according to official data and the International Labor Organization. Industrial hubs that once drove the nation’s economy have been reduced to storage sites for imported goods, many of which find their way to the streets.
For shoppers like Pabwe, informal night markets offer relief from the confusion and challenges of the ZiG.
“It’s quite confusing, especially for people like me who don’t understand the value of the ZiG. I always get confused in supermarkets.”
Batsirai Pabwe
After experiencing the affordability and convenience of night markets, Pabwe plans to make it a regular habit. “I got everything I was looking for, and the pricing is really affordable. I even managed to buy washing powder and dishwashing liquid,” he said with satisfaction.
As night markets continue to flourish, the divide between Zimbabwe’s formal and informal economies deepens. The resilience of these informal traders underscores the resourcefulness of Zimbabweans in the face of economic adversity. However, it also highlights the broader systemic challenges that the country’s leadership must address to restore stability and trust in its economy.
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