Of course, indirect costs are impossible to gauge. Clearly the withdraw of $700 million in spending power from a $4
billion economy must have very far-reaching ramifications for the formal sector in terms of spending on food,
clothing, transport, education, health, etc. Total consumer spending in the Zimbabwe economy in mid-2005 is of the
order of Z$35 trillion, and, thus, the direct reduction in consumer spending that will have a knock-on effect across
the formal sector will be equivalent to a 20% cutback. This will have serious knock-on implications for retail
turnovers, factory output, etc in the formal sector.
Clearly there will some offsetting effects. Some consumers who had accessed products from the informal sector will
now be forced into the formal sector, and already there are reports in the Herald of the Government preparing stands
and building retail factory shells for erstwhile informal sector participants. But the cushioning impact of this will be
small.
The conclusions are sobering. Total unemployment will probably rise from the current 1.5 million people, excluding
informal sector employees, to around 2.25 million. This is 45% of the workforce, but, however, this excludes 750
000 communal and small-scale farmers. If these are included, unemployment reaches 60%.
The direct impact on output (GDP) will be a likely reduction of some 17.5%. Various knock-on effects,
conservatively, might add another 2.5% to give a 20% reduction, or very nearly two-thirds of the total output decline
since 1998. Long-term effects are impossible to estimate. From a humanitarian and social viewpoint, there must be a
substantial drop in the number of children attending schools, and in the number of people able to afford food, let
alone shelter and medical care.
Reasons given by authorities for the campaign
The City Council, various Government Ministers, and Government officials have advanced a whole miscellany of
reasons for this operation.
One general explanation is that it was literally a clean-up operation. The shanty dwellings and informal markets and
stalls were an eyesore, and spoilt the beauty of the cities like Harare. Related to this was the explanation that the
vendors and operations of commuter transporters were also causing chaos in the central business districts, including
interfering with the flow of traffic, and it was therefore necessary “to restore order”.
The main official justification for the campaign against informal traders and vendors seems to be that, not only were
they operating illegally in violation of various by-laws, but also they were engaging in a variety of other illegal
activities, such as illegal dealing in foreign currency, or profiteering by hoarding scarce commodities such as mealie
meal, cooking oil, and petrol, and selling them way above the controlled price. There were also allegations that there
was dealing in stolen goods, and that these illegal activities were undermining the economy. The Police
Commissioner, Augustine Chihuri, went so far as to say that Operation Murambatsvina was meant to “clean the
country of the crawling mass of maggots bent on destroying the economy”.
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