The Sunday Mail
Africa Moyo
Senior Business Reporter
THE violent demonstrations that engulfed the country last week left a number of companies tottering on the brink of collapse given the scale of looting and destruction they were subjected to by marauding rioters.
On Monday last week, Zimbabwe woke up to violent demonstrations whose ferocity was last seen between 1997 and 1999.
MDC Alliance proxies, the Zimbabwe Congress of Trade Unions (ZCTU) and non-governmental organisations and social movements, organised the demonstrations allegedly to protest the recent fuel price increases.
The demonstrations left a trail of destruction of companies, public and private buildings and vehicles, and loss of lives and injuries of varying degrees.
Supermarkets, particularly in Bulawayo, Harare and Gweru, were looted and some are yet to open, with a sizable number having re-opened by Friday last week, but allowed a few customers inside at a time.
Employers Confederation of Zimbabwe (Emcoz) acting president Dr Israel Murefu, told The Sunday Mail Business last week that they are still quantifying their losses but preliminary indications are that some companies may not recover due to looting and destruction.
“We do not have the figures yet because many employers either are not yet open or are still counting their losses and assessing the damage, income loss, lost opportunity and property as well as goods and merchandise lost runs into several millions of dollars according to our rough estimates,” said Dr Murefu.
“Some businesses may totally fail to recover given the fact that they were already struggling with issues related to supply of raw materials and lack of foreign currency, which are generally weighing heavily against business viability.
“Employers lost a lot of productive time as well as income because businesses were closed and in some cases, businesses were victims of looting, violence and lawlessness which characterised the demonstrations as some hooligans took advantage of the situation to commit criminal acts.”
Confederation of Zimbabwe Industries (CZI) president Mr Sifelani Jabangwe, said while manufacturers were also still assessing their losses, it is believed the country could have lost business worth up to US$300 million during the three days of strike.
“The only way we can measure the loss is through GPD. We record about US$100 million per day and given that some companies operated on skeletal staff in the last three days, the economy lost between US$70 million and US$100 million per day.”
Mr Jabangwe said it is retrogressive to vandalise infrastructure in the name of demanding jobs and decent living standards from Government.
“Solutions to the economic challenges will not be easy and we believe that the general conduct of demonstrators may cost the nation in a big way.
“You see, the investors we want will not come because they will say ‘Zimbabwe is not a safe investor destination’. The economic challenges will not be solved by burning down property.
“It is easy to blame Government for the economic challenges but we are also to blame as citizens due to our actions,” said Mr Jabangwe
Zimbabwe National Chamber of Commerce (ZNCC) chief executive Mr Takunda Mugaga also slammed the barbaric acts saying they cost companies through “vandalism, pilferage, lost hours in productivity, skills flight as some professionals cannot cope with such situations”.
Mr Mugaga said the retail sector loses an average US$5 million in sales per day when there is no trade.
National Business Council of Zimbabwe (NBCZ) president Langton Mabhanga also condemned the violence saying; “What we are doing now is not going to help the economy. The more Zimbabweans do these things (violent protests), the more we miss.”
Employees won’t lose salaries
Emcoz said employees that failed to turn up for work during the three-day strike will not lose part of their salaries, largely because it was not of their making.
Dr Murefu said many employees failed to report for work due to safety issues, lack of transport, and general intimidation “associated with the stayaway”.
“. . . clearly, where there were issues of supervening impossibility, the blame cannot be visited upon the employee. Individual circumstances and explanations for failure to come to work would have to be taken into account.
“Many business premises were also closed and one would not have expected workers to turn up at a closed business amidst the climate generally prevailing in the cities and towns where most businesses are located.
“Each absenteeism has to be treated according to its own merits and in line with the law,” said Dr Murefu.
Last Thursday some small businesses did not open amid reports that commuter omnibuses were still being intimidated by ruffians from operating, especially in Kuwadzana Extension and Epworth.
In Harare, Kuwadzana Extension was one of the areas hard hit by violence, together with Epworth, Mabvuku and Chitungwiza.
