CoK to accommodate street vendors into mini-markets
The management of the City of Kigali in collaboration with MINALOC, LODA and Rwanda National Police have been examining the persistent problematic livelihoods of street vendors in the city and have come up with a couple of promising solutions. Some of the latter include identification and accommodation of street vendors them into mini-markets for permanent stay in formal and secure business, training on selected topics (such as forming cooperatives, smart spending, financial literacy, management of income generating projects, etc.) and integration them into existing social protection schemes namely VUP Financial Services.
As a kind of quick win actions, 17 selling points or mini-markets are being developed (7 in Gasabo, 5 in Kicukiro and 5 in Nyarugenge) to accommodate street vendors across the City of Kigali. To break the ice, on Friday 10th June 2022 at Giporoso Trading Centre, Kicukiro there was launch of a mini-market in which 31 informal traders were offered free space in the first instance. Similarly, on Saturday 11th June 2022, at Nyabugogo Modern Market/Ejo Heza, 195 former street vendors were integrated and given space to run their small businesses.
Beneficiaries laud the Government for taking care of them. One Dushimimana Jeanne, who spent 6 years as a street vendor, testifies that she feels the most comfortable while running her business at a secure place where she is no longer tracked down by security agencies. “I am no longer a street vendor but an investor. Paying health insurance fees for my family is no longer a problem. […]. I got a loan under BDF collateral. I can now afford paying school fees for my children, buying them an entire loaf of bread and paying my hair beautification costs. […]. It gives immeasurable pleasure when my child waives at me wishing me a ‘good job’. I fondly commend the Government for taking care of us this much”, shed declared.
NIRAGIRE Lucy, a single mother of one, residing at Kabeza, Kanombe Sector revealed that: “I am a street vendor normally living on banana fruit selling across the corners of Giporoso Business Centre. The major challenge we face and the risk we undergo is that when we are chased out by security agencies while tracking down street vendors, we might get injured and forced to abandon our products. […]. This is really a commendable step by the Government, we are pleased that we have been offered a space for our small businesses. Though our capital is very small, we hope that those who supported us this way can think of this issue as well. I am however very thankful to God and to our leadership. We have formed a 31-person group and we are committed to work hard so that our business grows up until we can pay rent and taxes”, she said.
On this occasion, the Director General of the Local Administrative Entities Development Agency (LODA), Mrs. NYINAWAGAGA Claudine, revealed that this initiative is part of the social protection process to integrate and cater of the specificities of inhabitants in the City of Kigali, especially street vendors. “After offering them free space for small businesses, we are planning to train them in financial literacy and smart spending. Moreover, they will be eligible for micro-loans with only 2% interest rate per year. This will help them develop their businesses until they become real investors”, says Nyinawagaga.
The Vice Mayor of the City of Kigali in charge of Socio-Economic Affairs, Mrs. URUJENI Martine, called upon beneficiaries to give up street trade since it is illegal and to rather run their businesses in groups given it fastens their business growth. “You have more opportunities while at this mini-market than when scattered across the streets. As the City of Kigali, we are going to pay rent of your business space for a whole year long, and in collaboration with LODA you will get micro-loans which are easily reimbursable. We urge you to also invite your fellow street vendors and let them know the benefits you can get from here. Once you are grouped at well-known place, it becomes easier for anybody who aspires to support you; and the same applies to your potential clients”, she stated.
Figures obtained from the City of Kigali indicate that 3,150 street vendors have been identified so far across the city. There is a long term plan to integrate this specific group of illegal traders into the revised Vision Umurenge Programme (VUP) so as to address the real needs of the poorest urban households and to ensure inclusive development. Not only the business chapter will be addressed, but also the human capital development as a whole.