The Sunday Mail
Society Reporter
Small businesses that rely on goods and trinkets sourced from China are beginning to feel the lagged impact of the coronavirus outbreak.
The virus, which was declared a pandemic by the World Health Organisation (WHO) last week, is increasingly paralysing global economic activity.
However, it is informal traders that rely on Chinese-made goods that have been the most affected.
For the past three months, the disease has menaced China and wrecked Asia, Europe and America. The death toll had risen to 4 800 by the end of last week, with more than 130 000 infections recorded around the world.
Global travel restrictions designed to curb the spread of the disease are, however, throttling supplies from the Asian country, which is considered the world’s factory. China is the major supplier of cheap goods such as electronic gadgets, clothing and other sought-after trinkets. Local businesses are beginning to fret over worries supply chains would be disrupted. Confederation of Zimbabwe Retailers Association (CZRA) president Mr Denford Mutashu said some local businesses could unavoidably be affected as they mostly depend on China for their supplies.
“The key lessons drawn from it is that Zimbabwe has got to be self-sufficient in the production of various essentials. The country needs to reactivate all key levers of production,” said Mr Mutashu.
The Sunday Mail Society engaged some of the small-scale traders in the capital to assess the impact coronavirus — or Covid-19 — has had on their operations.
Traders, among them vendors of second-hand clothes, believe their businesses are under threat. The movement of consignments of second-hand clothes (mabhero), which are normally routed through Mozambique, has also worryingly slowed down.
“I do not know what will happen after we clear our stocks. We are fast running out of business,” said a second-hand clothes dealer who operates in the downtown area of Harare.
Milcah Nyahote, who imports electronic goods, weighs in: “If a solution is not found soon, we are in trouble.”
Nyahote used to fly to Guangzhou for business trips at least once a month but is unable to do so at present.
She is currently mulling sourcing her products from alternative markets, which is increasingly difficult as the virus continues to spread around the world.
“The last order I purchased from China has been delayed and is yet to arrive. If I do not get new stock, I will soon be in trouble,” she said.
Placing online orders, she said, was risky for her business.
“I would rather sit and wait until the outbreak has ended than order for things that I may not use. There are chances of getting wrong orders, which will, in turn, result in losses,” she adds.
Travel — the lifeblood of industry and commerce — is slowly grinding to a halt, and the added layer of bureaucracy in trying to keep the disease in check is also making movement of cargo, especially at sea, inordinately slow.
It is not business as usual in China as swatches of the territory are either under partial or total lockdown. Some, if not most workers, are presently working from home.
However, there are indications Beijing has managed to reduce infections and contain the respiratory disease.
Raiding small towns
But the capital’s quick-thinking wheeler-dealers have since found a solution: they are now raiding small towns to replenish their stock.
They believe small traders outside Harare are holding disproportionately large stock, which is slow moving. There are fears this could negatively impact on prices.
“I can travel to Mutare or any other place outside Harare to replenish my stock, but that will mean say a shoe that normally costs US$20 or RTGS equivalent will be charged at US$30,” hinted one vendor, who elected to remain anonymous.
Tonderai Pakama, an electronic and designer wear dealer, said he was currently under siege for outstanding orders.
“I made orders just before the outbreak and I am yet to receive my consignment. There has not been movement of goods from China to Zimbabwe and we are now at loggerheads with our clients,” said Pakama.
“The most disturbing part is we do not know when the scourge will end. We are in a dilemma, I do not know how we are going to compensate our clients.”
Another trader in the capital who identified herself as Delphine Kamwendo spoke of the possibility of switching to Dubai.
Economist Mr Cephas Mutamba said Covid-19 posed a real threat to local businesses.
“Most of our goods come from China,” he says. Dubai, he adds, could be a viable alternative. Over the years, China has evolved as the preferred destination for most Zimbabwean businesspeople. According to the United Nations Comtrade database on international trade, Zimbabwe imports goods worth about US$400 million from China annually.
Zim still safe
Zimbabwe has not recorded any confirmed case of the coronavirus thus far.
Furthermore, the country has proactively adopted preventive measures at all ports of entry/exit point in line with WHO recommendations and best practice.
People coming to Zimbabwe from China or areas with confirmed cases are being encouraged to undergo self-quarantine for at least 21 days.
