THE TRADE OF SECOND-HAND CLOTHES IN THE LOCAL MEGA CITY MWANZA, TANZANIA: WITH SPECIAL REFERENCE TO THE SOCIAL NETWORKS OF MALI KAULI TRANSACTION

Abstract

The purpose of this study is to examine the social relationships of people in a small-scale commercial sector called Machinga by analyzing the unique credit transaction in the trade of second-hand clothes in Mwanza city. The credit transaction described in this presentation is called Mali kauli and is conducted by middlemen and micro-scale retail traders. Previous studies of the urban informal sector argued that credit transactions tend to be conducted by closed groups based on kinship and ethnicity. However, the Mali Kauli transaction is basically formed of purely business relationships and economic rationality rather than relationships originating in rural society. Mali Kauli transaction brings a lot of economic benefits to both middlemen and retailers. On the other hand, this practice has potential for friction because it creates business transactions among people with unreliable relationships. In conclusion, I suggest that the newly-created urban group solidarities such as Machinga generated through Mali Kauli transaction to attain stable transaction, satisfy economic interest, and promote reciprocal help in urban areas.