FLEA markets and hair salons are fast becoming significant players in the economy after contributing a combined average $358 million in 2013 alone, a survey has shown.
Findings by the country’s statistics agency, Zimstat, also indicate that during the period under review, flea markets and salons remitted a combined $2,13 million in taxes to the Government.
Presenting Zimstat’s findings on the Survey of Services report (flea markets and hair salons) in Bulawayo yesterday, Mr Godfrey Makware, a senior Zimstat researcher, said the survey was conducted between 2013 and 2015 and disseminates information on business enterprises in the country focusing on five sectors: Government, non-governmental, private proprietorship, sole proprietors and households.
The results from the survey are for the business period 2013.
“The total income of flea markets was $337 million and for hair salons it was $21,2 million. Expenditure in the same year for flea markets stood at $147,8 million. For hair salons, yearly expenditure was at $5,9 million,” said Mr Makware.
“In terms of taxes, flea markets paid $1,9 million and hair salons paid $289 000, which is a lot of money that the sector is contributing to the GDP.”
In addition, he said, wages and salaries paid by the two sectors totalled $44,845 million.
On the distribution of hair salons and flea markets, they are predominantly situated in urban areas and an average of 10 percent of the establishments are found in rural areas.
Flea markets and hair salons, Mr Makware said, have become a source of income for many people.
Harare has the highest number of flea markets, accounting for 25 percent of the 27 900 and 28 percent of the 3 052 salons in the country making it almost at par with Bulawayo.
Matabeleland North province has the least hair salons and flea markets in the country, accounting for only two percent of these enterprises.
Surveys indicate that close to five million people could be employed in the SMEs sector with an estimated $7 billion circulating outside the formal banking system.
Given the structural shift in the country’s economy, Finance and Economic Development Minister Patrick Chinamasa said recently that SMEs “are increasingly becoming a major driver of economic growth and development, enhancing employment opportunities and poverty alleviation”.
Minister Chinamasa added: “It is, therefore, imperative that Government continues to support the sector by addressing the challenges faced by SMEs such as finance, infrastructure provision, technology, management and entrepreneurial skills as well as access to markets.”
The minister said despite fiscal constraints in support of SMEs in Zimbabwe, positive strides to promote the sector were being made.
–The Chronicle