Livelihood Outcomes of Informal Cross Border Traders Prior to the Rise of the Virtual Cash Economy in Gweru, Zimbabwe

Abstract

ABSTRACT Informal cross border trade (ICBT) is a viable economic activity that many people in Zimbabwe depend upon for their survival during times of economic hardship. The research examined the livelihood outcomes of ICBT during the multi-currency era and prior to the extensive use of the virtual cash economy in Zimbabwe. Data collection instruments comprised closed and open-ended questionnaires, focus group discussions and semi-structured interviews with 497 traders at flea markets in Gweru, Zimbabwe. Results revealed that during the cash economy, ICBT generated livelihood outcomes through the exchange of cash, allowing traders to acquire land and goods and to provide employment. The study recommended the simultaneous use of the virtual cash economy and a cash economy to provide sustainable livelihood outcomes for all stakeholders. In addition, it is recommended that the government of Zimbabwe should integrate ICBT into the mainstream economy by formalization through economic policy.