Management of Informal Traders in the Public Spaces: a Case Study of Megenagna Square, Addis Ababa, Ethiopia

Abstract

The purpose of this study was to analyze the informal economic activities that are taking place around Megenagna Square of Addis Ababa city, Ethiopia. The goal of the study was to investigate the spatial challenges linked to locations of informal economic activities and propose strategies to solve these problems. Primarily, the study identifies the types of trading activities around Megenagna Square and determines their significance to the urban economy. Subsequently, the study sought to explain the reasons why the Square has continued to attract more informal traders. The exploratory research design was used for the study with data collected through survey and field observation. Given that a large number of informal workers are located on Megenagna Square, the study identified the sample frame that focused on the case area. The informal traders included in the study were identified through a stratified random sampling method, while simple random sampling method was used for their clients and residents. Purposive sampling method was used for the key informants. The study established that the majority of the informal workers around Megenagna area are males between the ages of 10 to 30, of whom most are vegetables, fruits, electronics, clothes, services (shoe shining, food and drinks) vendors. The major determinant factors for the location of the informal operators are access to the major street, availability of infrastructures such as electricity and water, proximity to market, social status and prestige, lack of alternative planned zone for the sector and possible tax evasion among others. The study also found out that most of the informal workers on the site are not licensed to operate, which is the primary cause of conflict between the operators and the local authorities. Due to this, most of the operators face harassment by law enforcement officers. The study culminates in the recommendation of strategies geared towards addressing the underlying challenges faced by the informal sector traders. Primarily, the study recommends a plan for the site allocation to the traders, widening of roads and pedestrian paths, improving waste management mechanisms on the site and policies to resolve the problems. The recommendations are imperative in guaranteeing increased revenue for the city authority and the national government.