At dusk, Haile Garment Square in the southern outskirts of Addis Abeba transforms from a quiet street into a lively market. Vendors quickly spread their merchandise — clothes, shoes, vegetables, household items — along sidewalks and street corners. Within moments, crowds form, eager for bargains. However, the scene can shift dramatically. At any sign of law enforcement, sellers scramble to run away, often leaving goods behind or facing harsh fines.
Andualem Tezera knows the routine well. Selling pineapples from his small, single-tire cart, he makes an average of 1,000 Br a day, carefully positioning himself in areas with steady pedestrian traffic.
"We stay alert," he told Fortune. "We run, and we sell."
Despite precautions, Andualem has had his merchandise seized twice in three weeks. Recently, he claimed to have been roughed up by law enforcement members the city administration deployed for failing to notice their approach while serving a customer.
"It's not surprising," he said. "We're used to it."
Street vendors like Andualem operate under constant threat from local officials. The Addis Abeba City Administration, determined to formalise this sprawling informal economy, introduced new regulations earlier this month. Street traders are now required to obtain permits from local bureaus, wear identification cards, and trade only in specified locations. To qualify, vendors should possess a resident ID of Addis Abeba, show proof of unemployment, and hold a taxpayer identification number (TIN). Those who surpass 200,000 Br earnings in two years are expected to vacate assigned spots, shifting into standard commercial activities.
Melese Tegenu, director of Legal Services at the city's Trade Bureau, acknowledged the long-standing presence of street trading. He noted from the Central Statistics Servcies data that informal traders accounted for nearly half the city’s businesses in 2014, numbering over one million. By 2018, around 117,000 street vendors had operated in Addis Abeba, though recent development projects markedly reduced their numbers.
The city's earlier attempts to regularise informal trading failed due to poor enforcement, prompting the revised regulation issued in 2009, but informed by experiences from international cities like Bangkok, Mumbai, and Johannesburg.
According to Habiba Siraj, head of the Addis Abeba Trade Bureau, the regulation’s objectives are to maintain the city's tidiness, ensure public safety, and generate sustainable revenue. About 8,000 vendors are currently organised under the city's Administration. Habiba dismissed concerns about identification barriers, insisting that anyone with proof of unemployment and six months of city residence is eligible.
Despite such assurances, vendors like Alem Wale, a vegetable seller and mother of two, find the regulation restrictive. She previously participated in government-organised markets, but those opportunities disappeared after redevelopment projects. Now, forced back onto the streets, she regularly faces seizures.
"We want to work legally, but opportunities are limited," Alem said, placing her financial struggles as her daily concerns.
She earns about 300 Br a day, a precarious livelihood threatened by daily enforcement patrols and the fees they are subjected to.
Vendors now pay fees amounting to 600 Br for late permit renewals, 200 Br for initial registrations, and 300 Br annually for renewals. Specific zones have been designated, too. Permanent stalls, seasonal markets, and Sunday markets are included in the regulations.
The guidelines are detailed. Vegetables and clothing vendors have time slots from 5:00am to 7: 00am; printed materials are available until 12:00pm; fast food is available until 2:00pm; cleaning services are available in the afternoon, and consumer goods are available until 9:30pm.
However, vendors face demands beyond mere fees. Obtaining a residential ID, essential for registration, is difficult.
According to Aemro Kassa of the Addis Abeba City Civil Registration Agency, obtaining an ID would require six months of residence verification unless the individual holds a National ID. Between 2021 and 2024, around 57,000 people applied for such IDs in Addis Abeba; only 16,562 were approved.
Zegeye Derese, 27, a graduate from Ommo Valley College, moved to Addis Abeba after failing to find employment in his hometown. Selling tomatoes provides his sole income, around 300 Br a day. He applied for a resident ID six months ago and remains in bureaucratic limbo. Recently, all his stock was seized during a raid.
"Their job is enforcing the law, but this is our livelihood," said Zegeye. "We’re used to running, but they've begun bashing us now."
Nonetheless, those running the informal economy such as Andualem and Zegeye are one crucial part of the national economy, accounting for approximately 33.5pc of GDP. Business consultant Mustefa Awol argues that street vendors provide vital services, creating affordable market options essential to urban living.
Globally, informal economies employ nearly 2.5 billion people, while in sub-Saharan Africa, the sector provides 30pc to 80pc of urban employment, depending on the country's economic level.
City officials insist formalising street vendors helps to improve teh city's revenue streams. According to Deputy Mayor Jantrar Abay, approximately 65,000 informal structures existed two years ago, contributing to street vending. He recognised integrating traders into the formal economy as complex.
"It’s difficult, complicated, and unconventional," he said, arguing for the necessity of enforcement to identify issues.
Formal traders like Abebe Ayano, who owns a boutique in Merkato, see informal traders as unfair competitors. He observed them offering price disparities, with street vendors selling products for substantially less. They do not pay taxes, and their overhead costs are very low, and they are free of rent.
"They sell the same clothes at lower prices. It puts a lot of pressure on us," Abebe said. "Buyers benefit from lower prices."
Abel Teshome, a government employee earning 12,000 Br monthly, relies heavily on street vendors for affordable clothing. He finds shopping at formal retailers financially demanding. He believes he can save between 300 Br and 600 Br on an item by buying from informal traders.
"It’s difficult to survive on a salary in Addis Abeba while shopping only at branded stores," Abel said.
But street vendors like Mohamed Awol are being discouraged by the fear of a law enforcement chase and the potential seizure of commodities. He usually hangs around corners around Saris, earning about 2,000 Br a day.
"Running has become part of our job," Mohamed told Fortune.
He found that not all law enforcement members behaved similarly. Some chase vendors away, while others aggressively confiscate goods.
The law enforcement members are under the Addis Abeba Code Enforcement Authority and are tasked with public awareness, securing areas, and confiscating goods. The code enforcement unit comprises 6,000 personnel, most of whom hold university degrees. Around 30pc to 40pc focus on public awareness campaigns, while the rest are assigned to prevention and enforcement tasks. They take confiscated perishable goods to district offices, while durable goods are auctioned.
Their boss, Girum Woldemeskel, who oversees the monitoring and violation control department, acknowledged that confrontations between code enforcers and vendors could occasionally escalate dangerously.
“Given the size of Addis Abeba, it’s challenging to monitor every location, but we work with various partners,” he told Fortune.
For legal experts like Daniel Fikadu, the latest regulation violates constitutional rights, restricting citizen mobility and economic freedom. Daniel contended that regional authorities lack jurisdiction over inter-state commerce, which is traditionally governed federally.
Minister of Labor Muferihat Kamil refrained from commenting on constitutional debates but affirmed the federal government's goal of transitioning street vendors into formal economic roles. Her Ministry has assumed the ambitious target of creating two million jobs nationwide.
“This process is being implemented nationwide, piloting in Addis Abeba and expanding to the regions and districts," she said. "It's a priority for us.”
The consultant, Mustefa, viewed formalisation positively, asserting benefits such as improved economic security, better access to social services, and enhanced municipal revenue. Yet, he cautioned that limiting participation to ID holders presents daunting obstacles.
"These regulations should involve stakeholders directly, ensuring practicality and effectiveness," he told Fortune.
PUBLISHED ON
Mar 30, 2025 [ VOL
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