Zimbabwe

Zim businesses lost $500m in a week to looting, stayaway and riots

27 January 2019 - 00:00 By KENNETH MATIMAIRE

Manufacturers, retailers and informal business operators in Zimbabwe estimate the losses from last week's stayaway will hit $500m.
They are also counting potential job losses because of the protest action.
Denford Mutashu, the president of the Confederation of Zimbabwe Retailers, said businesses were forced to close shop or risk being targeted by looters.
"We are moving around provinces engaging affected businesses and have covered quite some ground. We hope to get a clearer picture after we are done, but we are looking at a quantum figure of $500m in losses incurred," he said.
The findings are likely to be presented to the government for the formulation of legislation to impose heavy penalties on offenders and to protect businesses.
It will also pin down the number of employees likely to lose their jobs.
"In future we need a law to deal with those that instigate such wanton lawlessness at the expense of business. The cost to restock will be huge and most businesses will not be able to do so because they are purchasing their goods in foreign currency from manufacturers," Mutashu said.
Lucky Mlilo, president of the Professionals Business Association of Zimbabwe, said looting had a negative impact.
"The economy is already reeling under challenges, why exacerbate this by destroying infrastructure?" he said.
Among those most affected by the stayaway was the bread-baking industry. It put its losses at nearly $6m over the three days when there was no production.
Ngoni Mazango, the president of the National Bakers Association, said bakeries incurred heavy losses.
A loaf of bread is sold for $1.40 but on the black market it costs $4.
"We have a national production of 1.5-million loaves a day. If you multiply that with the cost of bread, you get a rough estimate of the loss incurred," said Mazango.
Last year, bakeries had a national production of 1.8-million loaves a day, up from 1-million in 2016. The three largest companies are Lobels, Bakers Inn and Proton, with a combined 95% market share.
The Grain Millers Association put its losses in Bulawayo, a hot spot for the protests, at more than $3m, with rice, mealie meal and salt among other products being looted or destroyed.
Tafadzwa Musarara, the association's chairman, said it had written off the losses. "The maize meal that we had supplied to shops on account and was yet to be paid for was looted and it amounts to $1.3m. The rice, salts and other products that we had supplied to the retailers amount to $1.7m, and this is in Bulawayo only."
The Confederation of Zimbabwe Industries had pegged the overall losses at $300m, as local, regional and international trade stopped.
Sifelani Jabangwe, the confederation president, said local businesses generated between $70m and $100m a day...

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