Covid-19: Mozambican cross-border traders say the survival of thousands is at risk

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Covid-19: Mozambican cross-border traders say the survival of thousands is at risk

2:23 CAT | 21 Apr 2020

File photo: Lusa

The Mukhero Association, which brings together Mozambique’s small-scale informal importers, warned today that the survival of thousands of families living on small-scale trade in food products “is at risk” from Covid-19.

There are two distinct realities, the president of the Mukhero Association, Sudekar Novela, told Lusa. Large supermarkets operate smoothly, but informal trade in establishments such as street stalls, is experiencing difficulties, as small importers face obstacles to buying products in South Africa, because of rising prices.

The neighbouring country, the main economy in Southern Africa, has instituted a state of emergency lockdown in response to the Covid-19 pandemic.

“Food products are increasingly expensive in South Africa, because restrictions imposed by the fight against Covid-19 have reduced producers’ and suppliers’ activity,” Sudekar Novela said.

Small-scale importers, whose activities are essential for families unable to buy food in supermarkets, are having to raise prices, Novela said.

“Already, products are not selling for a long time because of high prices,” he said.

Rising food prices are also making the business of thousands of intermediaries selling in various places in Mozambican cities unfeasible.

“The middlemen already had a very low profit margin, because they are far down the chain. With rising prices, their lives become very hard,” the president of the Mukhero Association said.

The drama in small commerce was exacerbated by the extortion practiced by police in South Africa and Mozambique, and by the constant raids by inspectors. A reduction in catering, hospitality and entertainment and the ban on weddings, baptisms, birthday parties is also seriously affecting food importers.

Informal cross-border traders do not have import licenses and buy their products in small amounts so as to be able to cross the border without paying customs duties or undertaking the costs affecting larger importers. This allows them to sell their products at relatively low prices.

According to the National Institute of Statistics, Mozambique’s three main cities registered a 0.22% Consumer Price Index increase in March compared to February.

Mozambique has 39 officially registered cases of Covid-19, with no deaths so far.

According to an AFP report, the Covid-19 pandemic globally has already claimed more than 167,000 lives and infected more than 2.4 million people in 193 countries and territories.

Source: Lusa