How can market vendors recover from Covid-19 shocks?
Monday, October 18, 2021

Former street vendors, who were allocated mini-markets across Kigali city, have requested financial support to be able to recover from Covid-19 impact on their sales.

Beatrice Mukangoboka, a former street vendor paid a three-month Rwf200, 000 for stands in a mini-market established for former street vendors in Kicukiro Centre.

However, the entrepreneur in horticulture said she lost all the capital due to a decline in sales during Covid-19 pandemic.

"The first investor who managed the market also counted losses and left the business. Another investor who came to manage the market agreed to charge us Rwf15, 000 per month but we had no capacity to pay due to previous losses,” she said.

Former street vendors, who were given mini-markets across Kigali city, have requested financial support to be able to recover from Covid-19 impact on their sales. Photo: File.

Despite the financial support which 20 vendors, in the same market, have obtained from 87 Members of District Administration Security Support Organ (DASSO) in Kicukiro District to help them recover from losses, they are still facing challenges caused by a number of street vendors who are still peddling some goods around these markets and across the city and thus block clients from entering the established mini-markets.

"We were allocated the mini-market in Kicukiro Centre but before clients enter this market they meet street vendors peddling at the gate of the market. This blocks our clients from entering our market since they choose to buy from those whom they see close to them.

 That is one of the main factors behind losses we are incurring. We urge the government to ensure that all those street vendors are given markets as support so we all work together,” she said.

Street vendors who sell shoes in Kigali. Photo: Sam Ngendahimana.

Mukangoboka said that there are also shops with food commodities in front of the mini-markets established for former street vendors adding this blocks clients from entering these markets.

She said that due to lack of clients in these markets, she had returned to the street for vending.

"I used to buy and retail Rwf30, 000 worth vegetables per day. Today selling the same quantity can even last the whole week because clients do not come to our market,” she said.

Odette Nyirangezahayo, another former street vendor said that there has been a week using   the market established for them.

However, she echoes the same challenges.

"There is a corridor in front of a market established for us where you see other food commodities being sold there. No client can pass by there and come to buy from us when they see what they want there. It would be ideal to have all food related commodities relocated to be traded in this market,” she said.

She said that she buys and retails Rwf20, 000 vegetables saying, however, that it can take a whole week to exhaust them.

"This means a big loss and discouraging situation,” said.

I used to buy and retail Rwf100, 000 fruits and vegetables but it has reduced to Rwf30, 000 due to Covid-19 effects on our sales, added Hadija Uwamahoro.

She suggested that the government gathers all street vendors and offer them free market stalls and startup capital.

"This will ensure that those who are still peddling around the city don’t affect the business of those who have abandoned street vending,” she said.

Francine Umuhoza, a street vendor who is still peddling in the city added that lack of startup capital to work in the market place is still the main challenge.

Samuel Niragire, the coordinator of Members of District Administration Security Support Organ (DASSO) said that besides supporting 20 former street vendors who counted losses due to Covid-19 impact on their businesses, the members have also returned 44 street children back to school.

"We have so far mobilized Rwf8 million in our fund which can help any of our members or support any other needy person such as those street vendors who counted losses,” he said.

Niragire said that they will also work with district officials to address complaints raised by former street vendors in mini-markets established for them.

Assurance to urban women traders in horticulture

Jean Rubangutsangabo, the Urban Economist at City of Kigali reiterated that the former street vendors were also affected by Covid-19 impact.

"We are working on different fresh measures to support street vendors and how we can successfully stamp out the issue of street vending. In addition to startup capital, we have to train them on financial literacy and business plans,” he said, adding that 3,000 street vendors in Nyabugogo were given mini-markets.

By 2016, over 8000 street vendors were registered in Kigali city to be given 12 free market places.

"At least 50 percent of street vendors who were given spaces in these mini-markets have graduated as their revenues grow and relocated to big markets. The exercise to end street vending continues,” he said.

Meanwhile, the Ministry of Agriculture and Animal Resources and Catholic Relief Services (CRS) have announced that they will partner in mobilising funds to finance women traders in horticulture who have been affected by Covid-19.

The pledge support is based on the study carried out in June and August this year which found that urban women in horticulture were severely affected by Covid-19 and therefore need support to recover.

According to the study carried out on 446 urban women traders in horticulture in the main markets in the City of Kigali, Rwamagana and Rubavu districts, the main challenges include Covid-19 consequences, limited access to storage facilities, limited access to business financing, commodities damaged, high cost of market space, cost of taxation, limited business skills and insufficient capital.

The challenges also include low market prices, transport costs, cost of taxation among others.

As a result of the study, a five-year program estimated to cost around Rwf977.9 million has been designed to help urban women traders in horticulture recover from Covid-19 effects.