Traffic jam: Economic empowerment tool

Currently my perspective about traffic jam has shifted from “damn this traffic jam,” to “thank this traffic jam,” which sounds crazy.

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But yes, the positive side of traffic jam is good.

 

Economic benefits of traffic jam

I embarked on studying the economic benefits of traffic jam to other social groupings apart from the vehicle users and noticed that as a group of people curse the traffic jam, others pray for traffic jam.

From the perspective of the street hawker, the economic benefit of the traffic jam is good. The only way to make good sales on the road is to follow the traffic jam. You need to study the direction of traffic to make sales. 

“our developments and businesses are all centred in the central business district of Accra.

“In the morning, traffic moves towards one direction and from late afternoon, towards the opposite direction. This is part of the street hawkers’ marketing skills,” Mr Kwesi Oduro Mensah told this writer around the 37 Military Hospital.

Close monitoring of daily street hawking activities on some major streets in Accra revealed that about 400 hawkers ply their trade between the National Theatre Traffic intersection, through the 37 Military Hospital, Tetteh Quarshie intersection, and Legon to Madina Junction. Another 200 are on the Professor John Evans Atta Mills High Street, 500 at Adabraka through Kwame Nkrumah Circle, to Ofonkor Barrier. 

About 200 are on the La Palm Hotel to Teshie Nungua road and close to 500 on the Graphic Road through Kaneshie to Mallam Junction.

 

Economic benefits

According to a few hawkers interviewed, sales made on a good day range from GH¢50.00 to GH¢300.00 on the average. 

A close study of the operations of the street entrepreneurs or “street hawkers” revealed that they employ conventional marketing skills – the five Ps of marketing in their unconventional trade on the streets. 

That is the “Product”-- they choose products that stand out, above the fold, have a unique selling proposition; “Price” --to succeed on the street your price must be competitive, reasonable, and fit into the budget and income ranges of the market (street) to which it is intended and “Place”-- being conscious of where you are selling this product ; and lastly the “People”-- as they focus on the person, type of car, and gender to price the product.

 

Street entrepreneurial skills 

The street entrepreneur knows how to promote the product - advertising and promotional action plans to attract the drivers and people on board the vehicle. 

My study also revealed that they use effective communication skills and ability to negotiate as they have barely a maximum of two minutes to seal the deal on the street.

In spite of the economic benefits for both the street entrepreneur and the drivers and passengers , I share in the predicament of Mr Alfred Oko Vanderpuije, Chief Executive Officer (CEO) of the Accra Metropolitan Assembly (AMA), who, since 2011, has been struggling to enforce all bye-laws that debar hawking in areas such as the Flagstaff House, 37 Military hospital, Mallam, Lapaz and other designated places.

The AMA recently warned that it will start arresting hawkers who flout the AMA bye-laws. The directive contained in the new bye-laws approved by the Assembly and the Local Government Ministry is aimed at ridding major streets in the capital of hawkers.

In strict accordance with these laws, no one will be allowed to sell any merchandise to a driver or a passenger whilst a vehicle is caught up in traffic.

Again, the laws also stipulate that a person shall not also buy from a street hawker unless the street is designated for that purpose.

Per the new laws, anyone found culpable of committing any of the above offences will be liable, on summary.

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