Formalisation of Street Vending in Dar es Salaam: Implementation and Enforcement of the Wamachinga Identity Card Initiative

Abstract

Abstract Street vending in urban Tanzania is a big sector that touches different activities. This research paper applies the ‘forbearance’ conceptual understanding to investigate the introduction and implementation of small traders’ Identity Cards or simply Wamachinga IDs as an official formalisation strategy. It reports the findings of a qualitative research design undertaken to explain the process of formalisation of street vendors and their trade in Dar es Salaam region. Multiple interpretations of the strategy were noted, such as a technique to collect data for further planning, a revenue collection tactic and an approach to equality between informal and formal traders. The study found that stakeholders embraced the initiative as progress towards gaining business freedom and access to improved earnings while boosting the government's coffers from the so-called informal sector. Additionally, the study found that the initiative had exposed challenges such as the lack of some important personal information in the IDs. It is hence sometimes dismissed as a politically-motivated initiative lacking legality. Moreover, the Local Government Authorities (LGAs) face challenges in managing business waste, business spaces, congestion and collection of some other revenues. Some formal business people/enterprises were reported to recruit young men and buy them Wamachinga IDs to sell items on their behalf. This was noted as a trick for tax evasion, which impedes tax compliance efforts. The study, therefore, recommends a participatory approach to improving the Wamachinga ID initiative alongside related by-laws to address the challenges this ID system faces.