Informal market has smart way of dealing with embedded inequalities


THE informal market has a smart way of dealing with embedded inequalities in existing market structures as they are an open knowledge-sharing system where actors meet, a local think tank has said.


In its latest report, eMKambo said if knowledge is shared among smallholder farmers, medium and largescale producers, traders, transporters and consumers, knowledge gaps and loopholes are reduced.

“Because producers come from different areas, they are more knowledgeable about commodities grown in their areas. By allowing farmers from different areas to meet and exchange value, the informal market enables dialogue which reduces knowledge asymmetry,” it said.

It said improving the supply of information through lowering the cost of airtime does not cover the farmers’ information needs or lead to farmers receiving appropriate information.

“Given that they are also tossed from one information source to another, farmers are saying a fragmented knowledge process cannot be relied upon to address knowledge deficits.

fish farming

“Organisations which double up as associations and processors tend to have privileged access to information, which they can hoard and not allow to trickle down to farmers the way it should. This puts farmers at a disadvantage because they would have low negotiation powers,” eMKambo said.

It said as demand and supply mechanisms determine prices in the informal market, a financially illiterate farmer can earn a better price than the one who is able to calculate costs and profit margins.

“For those farmers not sure about what price they can charge for their commodities, the informal market can unlock the true value of a commodity on a given day. A financially literate farmer can do all the costing but can earn less than the farmer who does not do all the calculations,” it said.

“This is partly explained by the fact that in the informal market, competition between products carries the day as opposed to competition between farmers.”

eMKambo said smallholder producers were good at correcting taste because they are also consumers of their products.

“They get vegetables for household consumption from their small gardens and sell surplus to earn income. This means they are much closer in satisfying consumer tastes and expectations. A large number of big producers do not have time to taste their own commodities,” it said.


    After being dumped and cheated by many spell casters , I lost the trust and the hope to get my husband back, it was this when I found MAMA the woman of miracles,she was so professional, calm and like a prophet. Her words were like words from heaven, whatever she told me after listening to my problem was exactly how it happened, she cast a love spell to bring back my husband, and it worked like a miracle in less than a week.she read my fortune accurately and told me about my past life,my marriage and business and in a POT OF HOLY WATER & A MIRROR she showed me the faces of my enemies.She performed a special prayer and gave me holy water to bath for only three days.Mama i came to agree that what you did was the righteous way for justice in love and that you are the best trustworthy spell caster.The HOLY OIL you also gave my husband made him be promoted at work and OUR BUSINESS IS ALSO BOOMING.Mama thank u very much and i promise to always carry your FLAG.
    She casts spells on love,marriage,divorce,jealousy,breakup,cheating,financial blessings,win court cases,remove bad luck etc.Call her for more info. +27836972245

Comments are closed.