Companies in central Mozambique face US$145 million losses from Cyclone Idai

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Companies in central Mozambique face US$145 million losses from Cyclone Idai

2:35 CAT | 10 May 2019

Photo: Miramar

Companies in central Mozambique suffered damage in the region of US$145 million as a result of Cyclone Idai, the Confederation of Economic Associations of Mozambique (CTA) said on Thursday.

Damage to the business fabric included the destruction of infrastructure, equipment and goods, CTA Executive Director Eduardo Sengo detailed in remarks to the “Current conjuncture and economic outlook 2019” conference.

“The companies in this region have had to bear two types of damage: direct – damage to infrastructure, equipment and goods, and indirect – having to do with financial flows that ceased due to the temporary suspension of economic activity,” Sengo said.

Industry was hardest hit by the cyclone, with losses of about US$36 million, followed by agribusiness, with about US$30 million dollars, and commerce with around US$29 million.

Construction, provision of services, hotels and catering, poultry, fisheries and baking also suffered ill-effects. The cyclone, Sengo continued, destroyed 12,000 jobs in large companies alone.

Mozambique was struck by two cyclones in less than two weeks in March and April of this year – Idai in the centre of the country and Kenneth in the north.