By Shephard Kembo
In the dusty streets of Mbare, the vibrant townships of Soweto, the bustling alleys of Lagos, and the underserved communities across the Global South, something powerful is stirring, a quiet revolution of resilience, innovation, and economic survival. It is the rise of the informal entrepreneur, the street vendor, the backyard mechanic, the hairdresser in the high-density suburb, and the online reseller without a registered company.
These individuals often dismissed by policymakers and invisible to formal economic statistics are the heartbeat of Africa’s grassroots economy. In Zimbabwe alone, over 70% of the working population is engaged in the informal sector. In Nigeria, it is over 85%. South Africa’s townships are brimming with talented, self-taught businesspeople who operate without formal infrastructure, legal protections, or access to credit. But what if we could turn these hustles into structured, scalable enterprises? What if the informal entrepreneur became the formal employer, job creator, and economic transformer?
From Survival to Scale: The Power of Hustle
The informal sector is not just about survival, it is about ingenuity. It is an economy built on grit, resourcefulness, and determination. Whether it is selling airtime, tailoring clothes, fixing electronics, or running a small food outlet from a backyard shack, informal entrepreneurs have found ways to meet demand where the formal economy has failed.
But hustle alone is not enough. The next phase of Africa’s economic renaissance lies in scaling these micro-enterprises giving structure to the structureless informal sector and hustle.
Barriers to Formalisation
Before we chart the path forward, we must acknowledge the challenges:
• Red Tape and Bureaucracy: For many the literature information and knowledge about company registration is ‘scarce’ not readily available and inaccessible, for others who have cared to research about it, it is deemed and regarded as costly, an unnecessary sheer waste of money, registering a business is time-consuming, unnecessary and confusing.
• Lack of Access to Capital: Banks do not fund “unregistered businesses.” Venture capital rarely reaches the grassroots.
• Low Financial Literacy: Many informal entrepreneurs lack the tools to manage cash flow, budget, or keep records.
• Fear of Taxation: There is often entrenched and deep-seated mistrust and or fear of government institutions and particularly purported overregulation and over-taxation by many informal businesses and entrepreneurs, and yet, despite these challenges, the will to grow is there.
How to Structure and Scale a Hustle
Here are practical steps every informal entrepreneur can take to transition into a formal enterprise:
1. Start With a Mindset Shift
You are not “just hustling.” You are building a business. Own that identity. Vision is the first structure. Where there is a vision normally provision follows. Think bigger, not just earning to eat, but building to employ. Aim to be a responsible growing corporate citizen contributing to the economy and fiscus.
2. Formalise Step by Step
Start small: Go for small digestible baby steps
• Open a mobile money wallet or bank account in your name for savings discipline in preparation of opening a formal registered company bank account.
• Register your company name with local regulatory authorities and or relevant small business groupings and or agencies.
• Apply for your company tax registration and allocate a tax number. Start with compliance basics.
Formalisation is not an event, it is a journey.
3. Separate Business and Personal Finances
Track income and expenses, even if it is basic and on a piece of paper. This discipline builds clarity, enables growth, and builds your profile for loans and grants.
4. Build a Simple Business Model
Ask yourself:
• What value am I offering?
• Who are my customers?
• What do I need to deliver better?
• What price makes sense?
Use this to create a basic business plan.
5. Leverage Digital Tools
Africa is mobile-first. Use WhatsApp, Instagram, or Facebook to market. Use mobile money for payments. Free apps like Google Sheets or Zoho can help manage finances.
6. Collaborate and Network
Join local business groups, cooperatives, or online communities. Learn from others, share ideas, and attract partners or customers.
7. Seek Mentorship and Support
Look for NGOs, government incubation hubs, or local business advisors who offer training, funding, and mentorship. In Zimbabwe, platforms like ZIMRA’s small business support or Empower Bank provide such avenues.
8. Invest in People
As you grow, hire help. Train them. Delegate. Build a team. Scaling is impossible alone.
Why This Matters, A Continent Awakening
Africa is the youngest continent. With over 60% of its population under the age of 25, formal jobs alone will never be enough. The future of work is entrepreneurial. If governments, development partners, and private sector players can rally to support the transformation of informal enterprises, we will not just reduce poverty, we will ignite prosperity.
In Zimbabwe, we can turn vendors into vendors’ cooperatives. In Nigeria, we can turn tailoring hustles into fashion brands. In South Africa, we can turn car washes into chains. Each story of transformation can multiply hope and dignity.
A Call to Action: Don’t Wait for Perfect Conditions
To every informal entrepreneur reading this: you do not have to wait for capital, a government grant, or perfect timing. You start where you are, with what you have, and grow. You already have the most important resource: the spirit to hustle, to try, to dream.
Now, structure that dream. Scale that hustle.
Because the world does not need more job seekers. It needs job makers, and you are already on your way.
Shephard Kembo (Managing Partner for Globavel International (PVT) LTD)
