Africa-Press – Tanzania. THE Dar es Salaam’s informal street money sellers to commuter buses are reaping big as the business turns to be lucrative.
The business that involves giving change to Dar es Salaam commuter buses ‘dala dala’ is conducted against the law but going on unabated.
The money vendors, despite operating against the laws and regulations according to the central bank, have become a great help in supplying change to dala dala conductors who find it difficult to keep running to banks to obtain them.
Mr Athanasi Mwaipopo, one of the traders at Buguruni, told Daily News that in a good day can sell change worth 200,000/- and earning between 10 per cent and 30 per cent of the amount sold.
“Yes, we can’t complain we are meeting our end daily needs…the take home depending with ones’ location where there are huge numbers of buses,” Mr Mwaipopo said.
The vendors are selling change by arranging various coins in a heap of between 700/- and 900/- which goes for an exchange of 1,000/-.
This left them with a gross profit of between 20,000/- and 30,000/- a day.
Also, others are earning up to around 15,000/- and 45,000/- per day by vending at wholesale. These ‘money changers’ are selling 4,500/- worth of coins for the exchange of 5,000/- notes.
“This is the super profit to most of the traders because when just ten conductors buy these lots they earn around 15,000/- per day”, said Mr Athanas.
Furthermore, he said the common coin heap is 800/- which goes for 1,000/- and their customers are not only bus conductors but also food vendors.
Though, traders complained that since the business turned up to be lucrative it has attracted several new players thus reducing their daily earnings.
“It’s a good business despite being informal. It’s better than staying idle and smoking weed,” Mr Athanas said.
Due to many new entrants, the vendors’ take home have dramatic dropped from earning 300/- per coin heap to an average of 100/- a day.
Another coins vendor, Mr Haruna Abdallah, of Mbezi dala dala terminal said the business of selling change pays off as its profit is quickly reflected.
Mr Abdallah said the dala dala terminal is huge and so change vendors, who are around 20, but due to many buses almost from either side of the city, they managed to sustain their businesses.
“The profit earned is 200/- for every 1,000/- that can be seen as too little but the take-home is big since we are capitalising economy of scales—a lot of buses plus rickshaws are coming and going from this stand,” Mr Abdallah said.
Another change seller at Kimara-Mwisho, Toima Ng’ondo, said the business is good for experienced vendors but for a beginner, it is very tricky because one needs first to cultivate customers first.
“We are facing two challenges one some dala dala change routes before paying our dues and second some drivers’ myth that we are stealing their money using superstition,” Mr Ng’ondo said.
Mr Yusuph Lyimo at Makumbusho dala dala stands said due to lack of formal employment they have to continue selling cons to conductors because they don’t have any other immediate means to earn a living.
“It is informal but we don’t have other choices than continuing doing it, since we are not sealing from conductors rather cashing in on their laziness to obtain changes from the banks,” Mr Lyimo said.
