|A customer buys orange from vendor, right, in central Harare while waiting in bank queue, background|
The government says the move is the latest attempt to clean up Harare as part of a crackdown called "Operation Restore Order."
The state-run Herald newspaper says the government is giving residents of squatter shacks three months to relocate.
Since last week, police have arrested nearly 10,000 people in Harare who operate unlicensed street stalls and flea markets.
Zimbabwe's black market is the main livelihood for thousands of people who have lost jobs in the country's economic recession.
Seventy percent of the population is unemployed and the country regularly faces shortages of basic goods, such as corn, sugar and gas.
Some information for this report provided by AP and AFP.